CryptoKitties and the idea of Digital Scarcity
CryptoKitties, one of the first blockchain games, has been attracting a great deal of attention for several years. This game enables players to adopt, trade, and even breed virtual cats on the blockchain platform.
You may have heard of cryptocurrencies, but these are “Crypto Collectibles”.
“There are billions of combinations of traits,” according to Dieter Shirley, the chief technical officer who helped found CryptoKitties in November 2017. These adorable CryptoKitties are made special and unique by their combination of traits. This is achieved through the use of a technique called a “genetic algorithm,” which functions similarly to biological processes such as selection, crossover, and mutation during the breeding process.
Digital Scarcity
The question remains: why would someone spend $1,000 or more on a virtual kitten? The answer lies in the concept of “digital scarcity.” This raises a fascinating question: can digital goods truly be rare?
Unlike traditional digital goods, which tend to decrease in value over time due to a lack of scarcity, the number of CryptoKitties is limited, and their ownership is tracked via a smart contract on the Ethereum blockchain. Consequently, the value of each CryptoKitty can appreciate or depreciate based on market demand, just like tangible goods in the real world.
Ready to adopt your first CryptoKitty?
Go check out https://www.cryptokitties.co/ and see if there is any CryptoKitty that interests you. Also, don’t forget to sign up to join the limited beta for Dapp Pocket to enjoy your Dapps on your phone.
