Enjin Ecosystem Update: Interoperable, Cross-Chain Tokens

Hey everyone, my name is Caleb Applegate. I'm 
the COO of Enjin. I'm joined today by our CTO   and Co-founder Witek Radomski and our Co-CTO 
Lukasz Orlowski. Guys, welcome.Thanks for spending   a few minutes with me today, I appreciate 
it because I know how busy you both are.   So this is our second bi-weekly update. Again the 
goal with these videos is to provide the community   with some of the most important information about 
projects we're developing, features that we've   prioritized – some of which have come directly 
from the community – and special announcements.   All of this is an effort to keep our community 
up-to-date with the latest Enjin news.   But before we jump in, I just wanted to personally 
take a minute and thank our community for all the   support around our EFI token launch this last 
week.

We continue to see incredible momentum and   the launch itself was an epic success. So many 
thanks. Alright with that, let's get started.   So many of you already know this and it probably 
goes without saying, but Witek you're the author   of the ERC-1155 standard. And for those who 
are new to Enjin and even NFTs and this space,   can you perhaps give a quick overview of ERC-1155? 
Sure ERC-1155 is a token standard for Ethereum.   So what does that mean? When you're building on 
Ethereum, you typically create a smart contract,   deploy it out to the Ethereum mainnet, and 
that smart contract if it has some kind of   token functionality, whether it's currencies or 
NFTs, you want to follow a standard so that other   applications and smart contracts can recognize 
those tokens, currencies, NFTs – wallets for   example.

So there's ERC-20 which is pretty much 
used by every token currency type of application   on Ethereum. And then for NFTs we have ERC-721 
and ERC-1155. So ERC-721 is made for one-off,   unique NFTs. But with ERC-1155 you can actually go 
a lot further. You can do NFTs and fungible tokens   in the same contract. And it's more like a vending 
machine where you can create different kinds of   tokens, and you can add functionality around 
those. Some of the cool features of ERC-1155   why people would use it is, you know, you 
can do batch transfers. You can send over 100   tokens at once. You have localization in your 
metadata so you can have different languages   and different version of your metadata. 
We have a lot of efficiency improvements.   You can essentially do transactions 
cheaper. And any block explorer, anyone   reading the data from the blockchain gets a lot 
of information about what exactly happened with   those tokens, whether they were minted, burned, 
or what exactly is going on.

So it's a very good   standard and you can even do things like respond 
to, you can build a smart contract that actually   can do something when it receives a token. So 
if you send a token out to an exchange contract,   it can immediately do something. And when you 
send a token out to a game contract, it can   do something in the game. Awesome, thank 
you for sharing that. I wanted to intro   with that for a reason. I wanted to provide 
our community with some background context   because as we develop Efinity on Polkadot, you and 
your team are now working on a brand new standard,   and this is a huge deal. Walk me through what 
you both are working on. So we're working on   something called a Paratoken standard. This 
is for the Polkadot and Kusama ecosystem,   but the goal of the standard is to really make 
these tokens interoperable, both in the whole   Polkadot Substrate Kusama ecosystem for all 
the parachains being built, and also for other   blockchains. So you can bring tokens in from 
Ethereum, have them expressed as a paratoken   on a parachain like Efinity.

And we're trying to 
do some new things to make the standard really   powerful and extensible. You can use the standard 
in something called pallets, which is one of the   core ways to really build software and parachains 
on Polkadot and Kusama. You can also use them in   smart, these tokens in smart contracts. Some of 
the functionality that we have defined already is   the ID of your token, the actual token ID and 
asset ID, can contain information about what   network the token came from, so whether it came 
from Bitcoin Ethereum, or whether it came from   another parachain or whether it was minted 
directly on that parachain that you're on   right now.

So that gives you efficiency. Now why 
are we building a token standard? Well if you do   this on smart contract like with ERC-1155, 721, 
there's a lot of difficulties in efficiency like   every smart contract is implemented in a 
different way. You can't trust it because of that,   because you don't know if that smart contract is 
going to do something crazy like steal tokens.   So every token contract on Ethereum has to be 
super paranoid and by being super paranoid,   it costs a lot to operate and it's very, there's 
a lot of friction in moving those tokens and doing   things with those tokens. So by building it 
for Substrate and for Kusama and Polkadot,   we can use native tokens now, and those 
have predictable functionality. And we can,   we went further into that by doing something 
called monetary policies, so if you own a token,   you know exactly how that token will behave based 
on its policy.

So whether it's the total supply,   for example, you'll know by the policy if the 
token supply can be minted further or not, whether   it has some sort of time locked minting, who the 
owner, who's allowed to mint it, things like that.   So, another thing that we have in the standard 
is extensions. And this is a powerful way to,   actually for any team building on Polkadot to 
extend the functionality, build cool efficiencies   into these things. So maybe Lukasz talk about 
a couple of the extensions that we have.   Sure, thanks. I mean that was really packed what 
you just said. I just gotta mention that you know   the extensions that we put into that are you 
know batch transfers which allow you to send   millions of tokens.

There's also chunking, which 
basically allows you to send a range of them   whether or not they fit on one block or not. We 
just gotta keep it future-proof this way. Yeah   and so what we're trying to do with the standard 
now is we're getting very close, we've defined   most of the functionality that's in scope for the 
standard. Now we're going to be connecting with   different parachains, the whole ecosystem 
on Polkadot and Kusama, talking with them,   cause the whole point of a standard is to get it 
standardized.

So we want to get people's feedback.   We want to talk to all of teams, people building 
wallets, and get their feedback, revise the   standard, improve it, and post it out to the 
community to get the general public's feedback.   And that way we can make a really good standard 
that, the whole reason we're building it is for   everyone to be able to easily send things in 
between parachains and in between blockchains   and we think this will help achieve that goal. 
Got it, amazing work guys. So where can the   community find more information on this if they 
want to dig deeper? So you can look at a general   overview of what we're achieving in Efinity 
on efinity.io, but in the coming weeks we're   actually gonna release the standard open-source 
onto the Substrate open working group's GitHub.   And so it'll then take some time for everyone 
to review it, provide feedback, comments,   and we'll improve the standard and then we'll look 
at posting it further and finalizing it.

Awesome,   well on a personal note I work day in and day out 
with you both, and I just wanted to say thanks.   Witek and Lukasz, I can personally attest 
to how hardworking and driven you both are,   and what a great job our entire development team 
continues to do, so many thanks to you both.   We have a busy remainder for Q3 and going into 
Q4 with probably some of the most critical and   important products Enjin has ever released, 
so lots to talk about.

In the next episode,   we're gonna be discussing some 
updates we have regarding NFT.io. So   to our community, you do not want to miss those. 
We have some really exciting things to talk about.   Thanks everyone for your support, we'll 
see you in the next episode.Cheers.

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