Every Day, More Kitties Keep Ethereum Network Busy

In just a few short days, CryptoKitties increased its transaction heft, from around 3% to more than 20% of total transactions on the Ethereum network. At the same time, the value of newly minted kitties keeps rising and is already above 10 ETH.

In essence, a kitten represents a digital asset, which is not a coin or a means of payment. There is the promise of uniqueness, although some believe the code allows for tampering the kitties. There is also a freezing vulnerability, which may lock away another form of digital assets.

The first two smart contracts belong to CryptoKitties, and are servicing nearly 100,000 kitties. Some are sold for a very low fee or for free, while the rarest Generation 0 kitties command prices of nearly 300 ETH.

In essence, CryptoKitties work like a long-term ICO and a set of coins with some arcane minting rules. But this time, the coins have a "face value" based on desirable traits. Imagine a crypto coin that would print different denominations based on an algorithm, so your holdings could grow based on the "stake" you already have.

The first incarnation of blockchain collectibles were the Rare Pepes, based on the Pepe cartoon which became associated with Donald Trump supporters. But the CryptoKitties are a far more evolved and inclusive, which reflects their rising popularity.

What is strange is that quite a bit of companies have attempted to create digital collectibles in the form of apps, but it was the creation of applied cryptographic solutions and the blockchain to create more demand for phenomena like CurioCards. The blockchain is what allows for unique ownership of an asset in an otherwise free-for-all ecosystem where the protection of uniqueness is almost impossible.

In essence, the blockchain verifies the ownership of an asset just like it protects the ownership of a token.