Cryptocurrencies have exploded in popularity over the last few years, much like stuffed animals did in the 1990’s. CryptoKitties is a new Ethereum-based DApp which allows users to buy and breed digital “Kitties”. These Kitties are an ERC-721 standard token with unique identifiers, including a 256-bit genome.
Beanie Babies, Barbie Dolls, Tomagotchi pets, old coins, and trading card games such as Pokemon. What do they all have in common? They are all on the list of items people will pay to collect, sometimes large sums of money. CryptoKitties join the ranks of these items. Based on the Ethereum Request for Comments (ERC)-721 standard, CryptoKitties are cryptotokens with unique attributes.
CryptoKitties launched on November 28th, 2017. Since their debut, they have placed immense strain on the Ethereum Network, On December 10th, they accounted for 15% of all Ethereum Network activity. Since this usage spike, the value of ETH has climbed to an all time high over $600.
What kind of tokens are CryptoKitties?
CryptoKitties is the first project to use the ERC-721 standard. Many tokens currently in use are based on the ERC-20 standard. One of the key differences between ERC-721 and ERC-20 is fungibility, or the ability to swap tokens because they have no notable differences.
ERC-20 tokens are more like the USD because they are fungible, or interchangeable. ERC-721 tokens, on the other hand, are designed to have unique, identifying characteristics.
How can I get CryptoKitties?
CryptoKitties can be purchased, bred, and sold using ETH. In an attempt to curb the Ethereum Network strain, CryptoKitties developers raised the mating fee from .002ETH to .015ETH. Because CryptoKitties are tokens, they can be bought, traded, given away, or auctioned off.
Several CryptoKitties have been auctioned off for charity, including one of the bug bounty kitties, which sold for more than $75,000 at the time of sale.
How much are these digital pets worth?
To date, more than $12 million in Kitty sales have been processed by the CryptoKitties marketplace, with several selling for more than $100,000. The Genesis Kitty sold for approximately $120,000.
According to an independent application designed by Niel de la Rouviere, the average Kitty sale price is ~$88.58.
How can CryptoKitties benefit the industry?
This platform combines ease of use with a hybrid blockchain-centralized platform, enabling newcomers to blockchain to learn more about how cryptocurrencies and decentralized marketplaces operate.
By enabling newcomers to enjoy their experience and learn about cryptocurrencies, CryptoKitties are accelerating the pace of widespread adoption, even if they are bogging down the Ethereum Network.