Showing the value in virtual
TechCrunch Sessions: Blockchain, CryptoKitties CEO Roham Gharegozlou explains how we define value in non-fungible tokens
Defining the value of cryptocurrency is easy. Tied to fiat currencies, you can check how much your Bitcoin or ether is worth at any time. But when you step outside cryptocurrencies, explaining the value of a digital token to non-techies is tough. It’s nobody’s fault: blockchain is a complicated technology that confuses even some technophiles. Your typical consumer checks out at the first mention of immutability and distributed ledgers.
So we started thinking: How do we shake them out of that cat nap? How do we show them a virtual token can represent more than just money?
Putting the “fun” in non-fungibles
The answer was to not explain it at all: let people feel it instead. Games deliver an experience, and experiences inform how we see the world and what we believe in. If we turned blockchain into an enjoyable experience we could show people its potential rather than just badger them about it. Once they owned a token themselves and understood its value, they’d believe in blockchain.
CryptoKitties co-founder and CEO Roham Gharegozlou recently did a fireside chat at TechCrunch Sessions: Blockchain in Zug, Switzerland, where he spoke about our blockchain philosophy, the development of CryptoKitties, and the fluid ways non-fungible tokens (NFTs) can hold value. Read on to learn more about that talk, or watch the full conversation here.
Once we decided to make a game, step two was easy: cats. They’re the internet’s mascot. Combine those two ideas (and over a year of hard work), and you’ve got the world’s most successful blockchain game, CryptoKitties.
Life is non-fungible
Swap one $10 bill for another, and you’ve still got ten bucks. But trading one Kitty for another is trickier. Most crypto assets are fungible, like that $10 bill; all that matters is how many you own. With CryptoKitties and other non-fungible tokens, the important thing is which ones you own.
Unlike Bitcoin or ether, where every token shares the same value, the worth of each individual NFT depends on numerous factors. For a CryptoKitty, it could be its rarity or exclusivity, desirable genes, a funny bio, not to mention the intangible consideration of personal meaning. The assessment of what’s “valuable” depends on the player.
The most important things in our lives are the same: your house, car, data, identity, passions, family. You can’t just swap out one for another.
CryptoKitties makes blockchain purrsonal
This is where blockchain shines. Tokens can hold personal value beyond money. We didn’t just paste pictures of cats onto the blockchain, we made them personalized. Each cat should mean something different to the owner than it does to the viewer. That value is tougher to convert to dollars or euros.
The game’s immediate success signals the public’s appetite for engaging in this new decentralized, peer-to-peer economy beyond cryptocurrencies. People are beginning to understand blockchain’s potential beyond Bitcoin.
CryptoKitties is no longer just a game, it’s a platform, thanks to the third-party developer teams building experiences — new ways to play and interact with your CryptoKitties — on top of the core game. Each new experience brings further depth to the CryptoKitties universe.
Have you claimed your personalized piece of the blockchain? Sign up for CryptoKitties today.
