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Blockchain for the masses

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CryptoKitties provided a new angle from which the general public could view blockchain. As one of the world’s first blockchain games, CryptoKitties could take advantage of all the same blockchain technology that makes Bitcoin possible. CryptoKitties isn’t a digital currency; it’s a cryptocollectible (a unique, non-fungible digital asset), and it has the same security as a cryptocurrency.

Each CryptoKitty (see Figure 2-1) is one-of-a-kind and cannot be replicated, removed, or destroyed. Playing the game sometimes requires a significant amount of resources, but a user gains an intimate understanding of how cryptocurrencies and blockchains work while having fun. (The game is a tad addictive, to say the least.)


FIGURE 2-1: Learn about cryptocurrency while buying and selling cute cats.

CryptoKitties not only introduced the world to NFTs but also introduced NFTs that could make their own NFTs. They took the more-difficult-to-understand features of blockchains — like its implications for digital permanence and the traceable provenance of data that can't be faked — and built them into their game mechanics.

Dapper Labs also understood the limitations of earlier blockchain projects. Many blockchain solutions were looking for problems and had to use one-time fundraising events for cryptocurrencies, called initial coin offerings (ICOs). CryptoKitties was one of the few blockchain projects in 2017 that didn’t host an ICO. But they were so popular that the sale of kitties broke their blockchain, slowing the transaction speeds for the rest of the users — a limitation Dapper Labs may have overlooked.

The sales of these unique digital cats, secured by way of the new token called ERC 721, slowed Ethereum to a crawl. The systems struggled to keep up with the demand for these cute little cats.

The Ethereum was a new blockchain that was designed with internal programing languages that allows developers to build blockchain applications — ones that could take advantage of distributed networks and built-in systems for clearing and settling transactions. Tokens were the killer app for blockchains, allowing almost anyone to issue a whole range of rare digital item — equities, currencies, coupons, and more.

ERC 721 added to the functionality of the earlier tokens by introducing an open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain. The Kitties perfectly demonstrated the functionality and limitations of blockchain technology while also making it fun and approachable.

The game made waves all over the world, even in mainstream media outlets like the New York Times, Wired, Forbes, CNN Money, and many more. It was fascinating to see this quirky and well-designed game change blockchain forever.

The CryptoKitty development team built a sustainable revenue-based model that allows them to keep growing as they acquire new users. Before CryptoKitties, blockchain struggled with sustainable business models. Often, the token economics didn’t align with user interest and market demand. CryptoKitties showed the world that blockchain technologies could be used for anything — even silly and cute games that let you breed digital cats.

NFTs For Dummies

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