Currently making waves in the realm of virtual assets are CryptoKitties, digital cats launched on November 28, 2017, as pioneers in blockchain gaming. These unique felines have garnered attention with some fetching astonishing prices; the average sale price is approximately $84 per kitty, though certain models command tens of thousands.
To buy, sell, or “breed” CryptoKitties, one must utilize a smart contract-based token (ERC-721) built on Ethereum’s blockchain. Blockchain operates as the decentralized ledger technology fueling many cryptocurrencies, including Bitcoin. Ethereum is another cryptocurrency that, while similar to Bitcoin, offers additional functionalities for simplifying “smart” transactions between users. (Refer also to: What Is Cryptocurrency, Anyway?)
For those looking to dive into the CryptoKitties market, you will need to convert your local currency (like dollars or euros) into Ethereum’s cryptocurrency, known as ether. At the moment, one ether is valued at roughly $824.
What are CryptoKitties?
CryptoKitties are virtual felines present on a network of computers, with each kitty possessing unique traits or “cattributes” derived from digital genetics. With over 4 billion potential genetic combinations, the variety of kitties is virtually limitless. Some cattributes, such as wingtips or blood-red features, have higher appeal and value, establishing a distinctive marketplace.
These digital cats have drawn parallels to the Beanie Babies phenomenon from the 90s, as well as the trading of baseball or Pokémon cards. If you’ve ever engaged in collecting or trading such items, you likely understand how values can fluctuate based on rarity, which, in this context, is influenced by the game’s developers and the characteristics assigned to each digital feline.
Reasons to Consider Buying CryptoKitties
At present, CryptoKitties lack intrinsic value beyond what the community determines. Essentially, the buying, selling, and breeding of these digital cats occur because individuals anticipate their future appreciation in value. When engaging in transactions involving these kitties, users receive payments in ether, which can be exchanged for actual currency.
Beyond the potential monetary gain, CryptoKitties also offer an enjoyable gaming experience. The surprise element of discovering the cattributes of your next generation of kittens adds an engaging aspect to the gameplay, merging entertainment with the opportunity to earn.
What Does the CryptoKitties Phenomenon Signify?
While the immediate value of CryptoKitties may seem negligible, the White Papurr presented by the developers at Axiom Zen emphasizes that the primary goal of the game is to demystify blockchain technology for everyday consumers.
The document encapsulates the essence of CryptoKitties, stating, “By normalizing the practical application of smart contracts and cryptocurrency transactions, we aim to equip ordinary individuals with foundational knowledge of distributed ledger technology.”
Who would have imagined that virtual felines could serve as a gateway for the general public to grasp the future of technological advancements?
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