Crypto mining was yesterday - these are the CryptoKitties
It's not always easy as an allergy sufferer; my better half wants a soft animal to cuddle, but unfortunately my nose won't cooperate. And the few chest hairs I have to offer can't hold a candle to fluffy fur. So an alternative has to be found - clear the ring for the CryptoKitties.
Of course, it takes a lot of imagination to feel the fluffy fur of digital animals. Nevertheless, there is a lot to be said for getting involved. Because CryptoKitties are by no means a revival of the Tamagotchis from the 90s. They are much more innovative. These kitties are worth real money and have already triggered a huge hype among numerous nerds.
What the heck are CryptoKitties?
This is a game based on blockchain technology in the Ethereum network that involves collecting and breeding small kittens. These are called CryptoKitties. Each creature is unique and cannot be replicated or destroyed. However, they can be bought, sold or traded.
Blockchain and Ethereum - the basis of CryptoKitties
Like Bitcoin, Ethereum is based on blockchain technology. Blockchains are decentralised internet databases that can manage transaction data. The transactions function without a central control authority. Ethereum therefore requires no mutual trust and guarantees complete transparency. The biggest advantage of doing business via Ethereum is that no intermediary earns additional money - banks and brokers become superfluous.
In contrast to Bitcoin, Ethereum is not a currency, but a platform for distributed apps (Dapps), which consist of smart contracts. If you were to imagine all this as a box full of Lego, Ethereum would be the big green Lego plate on which we build everything else. The currency in the Ethereum network is "Ether", which can be bought or, as with other cryptocurrencies, mined (Ethereum Mining).
Let the kittens out of the bag
A kitty like this can be a real collector's item - at least if you imagine it. Or if the value of the kitten goes through the roof thanks to its genetics. To get one for yourself, you need Chrome or Firefox, a digital wallet in addon form (MetaMask) and Ether. You can buy a Kittie from 0.0028 ETH, which is equivalent to around 1.58 francs. If you want to dig a little deeper into your pocket, you can of course do that too. In December, individual CryptoKitties were sold for over 120,000 US dollars. Incredible, considering that the purpose of the digital creatures is not really given. I would have liked them to at least be able to purr me to sleep, but no such luck.
Digital genetics
Each CryptoKitty has a unique genetic combination that influences not only its own appearance, but also what any offspring would look like. In addition, the genetics harbour a multitude of invisible traits that can only be found during breeding. In total, the system offers over four billion different phenotypes and genotypes.
Until November 2018, the system will generate a new Generation 0 cat every 15 minutes. Generation 0 includes every kitty that has no dad and no mum. However, you also have the option of breeding new kitties yourself. Of course, you need at least two cats to do this. If the game was called "CryptoSlugs", you could also hope for self-mating creatures. Unfortunately, this is not possible here. After all, the CryptoKitties are hermaphrodite and so any creature can become a dad or mum. You can also breed with kitties from other users (which of course costs its ether).
If you breed with a lucky hand, the combination of two kitties can lead to completely new characteristics. This is known as an "ascension", which can of course also increase the value of the kitties.
Making money with the CryptoKitties
Of course, the bred kittens can also be sold (auctioned). In this case, 3.75 per cent of the transaction costs are deducted by the developers. Otherwise, you set the starting price and the auction duration of the creature to be sold yourself. The set price can rise or fall during the auction. As the auction triggers a transaction in the blockchain, this also costs something.
Heaven let it rain brains - do we really need it?
All right - we now know about the CryptoKitties. But what's the point of it all? At first glance, the game looks like another snowball system that rakes money out of thin air for no purpose. As with a currency, the whole thing only lasts as long as people believe in it - or support the system.
If you take a closer look, however, the CryptoKitties could also herald a new era. An era that could potentially make the entire banking sector redundant. This is one of the first really big blockchain applications outside of direct currency trading. Back in December, there were days when CryptoKitties transactions accounted for 15 per cent of traffic on the entire Ethereum network. This in turn leads to additional costs for all transactions - even outside of CryptoKitties. And this is where it all makes sense. Because thanks to the challenges posed by traffic monsters like the Kitties, blockchain developers have the opportunity to improve the system and make it fit for really useful applications.
It will be interesting to see where the blockchain will take us in the future. However, experts agree that this technology has great potential and will change our world forever.
Do you already have experience with the CryptoKitties? Or any other comment on the blockchain?Then please share your thoughts with us in the comments. You can find more information about the CryptoKitties here
I find my muse in everything. When I don’t, I draw inspiration from daydreaming. After all, if you dream, you don’t sleep through life.