Lately, the crypto industry is hearing a lot about a new project which is a P2P network that allows different parties to store and run computations on the data available on the network while keeping the information private.
This project allows users to share their data with cryptographers while keeping their privacy and removes the requirement of a third party vendor to provide more autonomous control over the personal data.
This is none other than the Enigma project which is built on a highly optimized secure multi-party computation and employs a verifiable secret-sharing programme. Let’s take a look at this project in detail and see how it is useful in the blockchain environment.
What is Enigma Project?
The Enigma Project was designed by a group of MIT graduates and has been built after extensive research and planning. The Enigma protocol plans to solve two issues of blockchains: privacy and scalability. It is a second-layer, off-chain network which allows decentralized data computation and exchange which is both private and secure.
This project employs a modified distributed hash table for storing the secret contracts data and an external blockchain is responsible for controlling the network while managing access control and identities and acts as a tamper-proof event log.
Here are a few key features of Enigma Project which will make it a popular platform in the coming future:
Decentralization of applications
Enigma aims to allow completely decentralized apps which don’t suffer from the vulnerabilities of centralized apps that includes corruption, misaligned incentives, and security issues. Although blockchain can solve this problem, they face scalability and privacy issue and can be really expensive and slow. As a result, data needs to be stored off-chain in a centralized database but enigma ensures that data is decentralized and private at the same time.
The Enigma project employs a technology which helps the users in sharing their data for computation while protecting its privacy. The nodes in the Enigma network don’t directly see the data but it performs the computations on it and introduces a new type of smart contracts known as secret contracts.
In this network, the data is processed while the contract remains encrypted and secure.
Many different industries can use Enigma protocol but the first implementation of this protocol is for decentralized, open and secure data marketplace where decentralized data is not stored in a centralized database and the centralized authority doesn’t own or control the decentralized data.
Team Behind Enigma
As we mentioned above, the Enigma project team is made up of MIT graduates and researchers, each of whom is an expert in his/her field. Guy Zyskind is the founder of Enigma and has over 10 years of experience in software development. His co-founder Can Kisagun is another MITian who worked for Mckinsey before working on the Enigma project.
Apart from the MIT developers, the team consists of top advisors and investors who play a major role in the project’s progress and decision-making.
What is Enigma Catalyst?
The catalyst was the first app to be built on Enigma data marketplace which is essentially a platform for crypto asset research and investment. It employs the crypto financial data marketplace to allow the users to share and organize data while building profitable investment strategies.
It will use the decentralized exchange protocol which is an off-chain protocol that allows the users to make quick cross-chain transfers while keeping full control over their assets. Although it will initially focus on financial data, the Enigma team aims to build the open data marketplace for all kinds of data and not just the financial data.
What are ENG tokens?
ENG is an ERC20 token which can be exchanged for ETH and BTC tokens so that one can use it on the Catalyst platform.
The Enigma (ENG) tokens will play a major role on the Catalyst platform and will be used for making exchanges on the platform. The developers will be rewarded with ENG tokens for developing winning strategies on the Catalyst platform. ENG tokens will attract the users to this platform and will reward users who help in organizing or share their data sets for the computational purpose.
How to Buy ENG Tokens
To be able to get ENG tokens in your wallet, you will first need to have some ETH coins. You can purchase ETH coins on most Ethereum exchanges and it takes only a few minutes to complete the transaction. Once you have the ETH coins, you can go to an exchange which allows you to swap your ETH coins for ENG tokens.
Here is a quick guide to how you can do that:
1.Go to Coinbase.com and sign up for a new account. If Coinbase doesn’t work for you, you can also use Coinmama as it’s pretty good alternative. If you already have an account, then skip this step and go to step 4 after you log in.
2. After signing up, verify your account by uploading an image, entering your phone number and choosing a payment detail.
3. Confirm your payment details.
4. Navigate to ‘Buy/Sell’ page and then choose ‘Ethereum’ for purchasing.
5. Enter the amount of currency that you wish to use or the number of Ethereum coins that you want to purchase.
6. Once you are satisfied with the amount, click on ‘Buy’ button to continue the transaction.
7. You will need to confirm your transaction by pressing ‘Confirm Buy’ button.
8. Now, you will find Ethereum coins in your Coinbase wallet which you can use to exchange for Enigma tokens.
How to Exchange ETH for ENG
1. For exchanging ETH for ENG tokens, go to Binance and register if you don’t already have an account. If you do have an account, directly login to Binance and go to the ETH-ENG exchange process below.
2. Confirm your email address after registering.
3. Now, go to Binance to log in. Set up two-factor authentication for your account if you haven’t already done so and use the Authentication app for it.
4. Navigate to ‘Funds’ menu and then select ‘Deposits Withdrawals’ option.
5. Search for ‘Ethereum’ wallet and then press on ‘Deposit’.
6. Copy the displayed wallet address in a safe location.
7. Return to Coinbase and navigate to ‘Accounts’ page.
8. Find your Ethereum wallet and press ‘Send’.
9. Enter the copied wallet address from step 14 in the ‘Recipient’ section and press ‘Continue’.
10. Confirm the transaction using your email or phone and wait for the ETH coins move to your Binance wallet.
Now, you can trade your ETH coins for some ENG tokens, just follow these steps:
1. On the Desposit & Withdrawals page of Binance search for Enigma and select the BTC/ENG option from the trade drop-down option.
2. On Binance exchange, go to ENG/ETH exchange market and select the ‘Market’ option to purchase ENG tokens.
3. Enter the ‘Amount’ on ENG tokens you wish to purchase or you can use percentage to decide the amount of ETH coins that you wish to trade.
4. Once decided, press ‘Buy COIN’ button and then wait for the order to get completed.
5. You will now see ENG tokens on your ‘Deposits Withdrawals’ page.
How to Setup your Enigma wallet
Since ENG token is on the Ethereum blockchain, you can use any Ethereum wallet to store your Enigma coins. Setting up a new Enigma wallet is easy and simple and will take just a couple of minutes, all you need to do is follow the below steps:
- Go to an Ethereum wallet like myetherwallet.com and enter a password.
- Click on ‘Create New Wallet’ and then save your keystore file by clicking on ‘Download Keystore File’.
- Keep a backup of this file and then save your unencrypted private key of your wallet.
- Next, click on ‘Save your address’ to open your wallet.
- Select the ‘Keystore File’ option to open your wallet and then upload the keystore file that you downloaded earlier. You will also need to input your password.
- Scroll down to see your wallet and then save address and keep it somewhere safe.
How to Store ENG tokens
Once you have purchased the Enigma (ENG) tokens, you have an option to leave them in your exchange wallet or you can keep it safe by transferring it to your personal wallet. A personal wallet is a better option as it is tougher to hack and protects your tokens from cyber thefts.
- Once you have bought the ENG tokens on Binance exchange, you simply need to go to your ENG wallet on ‘Deposits Withdrawals’ page and then press ‘Withdrawal’ button.
- You will see a dialog box displayed in which you need to enter Label, Address, and Amount.
- For the Address, you need to use your MyEtherWallet’s address and for Amount, hit the ‘Max’ link.
- Then click on ‘Submit’ button and authorize the transaction via 2FA. Then, again click submit and confirm the transaction through your email.
Now, check your MyEtherWallet’s Token Balances and you will see ENG tokens being displayed here.
Note: Remember that Enigma coins are available as tokens on Ethereum network so you need to pay ‘gas’ in order to move it across the network. For this, you need Ether coins to power your transaction so always keep a few Ether coins if you want to move your ENG tokens in the future.