What is Enigma and how does it work?
Enigma (ENG) is a highly specialized but potentially very useful cryptocurrency. Appropriately enough, it’s relatively unknown despite a ballooning price.
The main purpose of the Enigma system is to allow the analysis and computation of data without that data actually being revealed. For example, it could suit a group of people who wanted to work out their average salaries and their exact place in the hierarchy without anyone actually disclosing their individual salaries.
There are two main parts to Enigma.
- The main Enigma ecosystem – Does the above.
- Enigma Catalyst – Is an investment platform that lets developers tap into Enigma’s data marketplace and the main home of the Enigma token.
Note: Enigma ENG is not to be confused with Enigma (XNG). This article is about Enigma ENG.
Where to buy, sell and trade Enigma (ENG)
How does Enigma work?
Enigma and Enigma Catalyst are separate but related projects run by the same team.
This is the initial project. It was created for the purposes of letting people run computations on data while keeping the data itself secure and private.
It’s a very specialized function but with more application than there might initially seem. For example:
- Two businesses want to enter into a partnership and make informed decisions on how best to divide their resources, but they don’t want to actually disclose any sensitive commercial information.
- Analyzing and studying medical data without the usual risks of accessing and storing confidential information.
- Reducing the chances of corruption, data misuse or growing inequality while facilitating research with sensitive information.
- Letting individuals sell their own sensitive personal information with the confidence of knowing that it’s going to remain private but can still be used.
- Allowing for a large pool of data for machine learning without the costs and problems associated with accessing confidential information on a large scale.
- Allowing Enigma to become a secure and decentralized data marketplace.
Enigma combines on-chain and off-chain systems to allow for more efficiency. Data is communicated and secured over the blockchain, while computations take place on Enigma’s off-chain system and remain secured via the blockchain.
It’s intended to be able to connect with existing blockchains and then offload to the off-chain system for processing.
This allows for complex and intensive computations, a wealth of information taken from other blockchains, and uncompromising security and reliability.
This will be wrapped up with functionality for developers to create their own decentralized applications to make full use of this data without any trusted third parties.
Catalyst is an algorithmic trading tool for cryptocurrency exchanges designed to tap into the Enigma data marketplace.
It’s kind of like the Enigma team created its own application as a demonstration of the potential applications of Enigma and then set about monetizing it with the ENG token.
It’s meant to let developers more quickly and easily create their own machine learning trade-bots for cryptocurrency exchanges with a large pool of data at their disposal.
The ENG token is the main currency of the Catalyst system used to access these opportunities.
How to sell or trade Enigma
- Visit the exchange platform that you hold Enigma on. If you have Enigma in a digital wallet, then choose any platform from the ones listed above.
- Via the platform, follow the instructions to sell or trade your Enigma.
Enigma price predictions: Should I buy?
Enigma is potentially a very useful coin, and the development team boasts a great degree of technical knowledge. Despite being a relatively complex system, Enigma can probably do what it’s intended to.
However, there are also some warning signs to be aware of.
First, the ICO didn’t go entirely smoothly and an estimated $500,000 of coins were stolen in the process. Despite their solid blockchain technology credentials, the team may be relatively unfamiliar with cryptocurrencies as a whole.
But the main red flag is that ENG tokens aren’t a strictly necessary part of the Enigma system. It doesn’t need ENG tokens, and they don’t contribute to Enigma in any functional way. Instead, it mostly looks like ENG tokens were created for the purpose of monetizing the Enigma Catalyst system.
The price growth around the start of 2018, from January 1-3 when the price of ENG approximately tripled, also seems to have come largely out of the blue, without any clear reason behind the growth.
It’s possible that many people have seen the potential of Enigma Catalyst in an increasingly complicated and crowded cryptocurrency ecosystem, but it’s equally likely to be an anomaly.
While Enigma Catalyst is almost certainly very useful in the hands of the right people, those people are probably still fairly rare. It seems unlikely that the price growth is backed up by the real potential of the coin.
And in the long run, it also seems unlikely that Enigma can compete against competitors with similar functions.
It uses a relatively complex and specialized system, and the ENG token itself seems to have been mostly tacked on as an afterthought to help fund the project.