CryptoKitties, the Ethereum-based digital kittens collection game , has processed more than $ 12 million in sales in its decentralized market.
Essentially, CryptoKitties is a Tamagotchi type game developed as a decentralized application (dapp) launched in addition to the Ethereum protocol. Each digital kitten represents a unique crypto asset and its ownership can not be changed because it is embedded in the immutable Ethereum Blockchain
According to Kitty Sales, five of the most rare the digital kittens of the CryptoKitties platform were sold for more than $ 100,000 each, the most expensive digital cat being sold at around $ 120,000. Some analysts and researchers have questioned the value of these digital kittens, and whether the platform itself is sustainable in the long run.
Something Even Greater
While the vast majority of critics CryptoKitties platform as a simple collectible game, venture capital investor, partner Andreessen Horowitz, and Earn.com CEO Balaji Srinivasan explained that CryptoKitties has demonstrated a frictionless international trade in digital assets on a large-scale Blockchain. He believes that the game has proved that assets can be traded in a decentralized manner without the intervention of intermediaries.
Using the same mechanism and technology as CryptoKitties, a digital asset can be transparently exchanged via a decentralized platform. If the CryptoKitties platform is evaluated as a peer-to-peer digital asset exchange, the use of technology becomes more intriguing than a simple collectible game.
In the long term, investors and traders will be able to trade digital assets using decentralized applications on the Ethereum network. They will no longer have to rely on centralized platforms that are vulnerable to a wide range of threats and are equipped with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) strategies
. intrinsic value
Moreover, Bitcoin and the cryptocurrency market have proved that the concept of intrinsic value is flawed. The value is subjective and no asset or currency in the world market is intrinsically worth a particular value.
Ethereum co-founder Vitalik Buterin gave the example of Leonardo Da Vinci's Salvator Mundi auction. The Da Vinci painting was auctioned at $ 450 million by Christie's. The painting could represent 450 million dollars in value for the Saudi prince Bader bin Abdullah bin Mohammed ben Farhan Al Saud, the buyer of the painting, but for others, the painting may not be worth it.
Crypto (kitties) is a reflection of the world as a whole.
– Vitalik Buterin (@VitalikButerin) December 9, 2017
Buterin further underlined CryptoKitties:
"Illustrates very well that the value of a Blockchain s 39 extends well beyond applications that would literally be closed by banks or governments if they did not use them. "
The value of digital kittens on the CryptoKitties platform is based on scarcity and rarity, like all other crypto-currencies in the market with a fixed money supply. In addition to this, CryptoKitties has demonstrated the possibility of a frictionless and transparent trading of digital assets, which could be implemented on a larger scale in major industries such as finance.