Digital Collectibles have proliferated, and their existence is dependent upon underlying issuing authorities which can produce multiples of the asset and reduce their intrinsic value.
Digital Collectibles are cryptographically, unique, non-fungible, interchangeable digital assets and dissimilar to cryptocurrencies that require all tokens to be identical. A large proportion of blockchain’s value has accrued to fungible tokens and blockchain can also facilitate ledgers to maintain non-fungible tokens ownership. Bitcoin contains a limited scripting language and incorporates platforms including Counterparty that were designed to support new tokens such as NFTs.
The crypto Collectibles market consists of start-ups including Pepe, Ether and Bitcoin Fighters capitalising on the adoption of powerful catalysts comprising robust script languages, standards and interoperability contributing to overarching global liquidity.
Ethereum’s average transaction currently amounts to $0.70 and increased significantly throughout CryptoKitties’ popularity which incites games to compensate players for initial investment and ongoing costs.
The platform leverages a predictable scarcity for start-ups such as Etherbots that utilise it for hard capped presales, small promotional allowances and a well-defined process of part inflation. CryptoKitties’ developers can create original contract extensions and interact with future systems while maintaining immutable functionality.
Developers can furthermore call a previous contract which is an arbitrary restriction misplaced in an inherently secure economy that doesn’t resort to time locks. Etherbots utilises experience and rewards to obviate cooldowns that are implemented as scaled fall-off functions. Ethereum’s inability to scale beyond a limited numbers of transactions discourages complex games as simpler games are necessary to prove the ecosystem’s viability.
China’s search engine behemoth Baidu has also launched crypto collectable game Leci Gou for the digital adoption and trade of puppies developed by an internal blockchain department that is part of the Hyperledger consortium.
ERC721 enables developers to implement scarce digital assets that users can rely on rather than a trusted intermediary and benefit from a massive global liquidity pool. Digital assets are underpinned by competitive partnerships and licensing deals gaining from a sustainable demand and infrastructure for users.
Ethereum’s app CryptoKitties raised $12mn from Venture Capital firms Andreessen Horowitz, Union Square Ventures and Coinbase founder Fred Ehrsam, AngelList CEO Naval Ravikant and Zynga founder Mark Pincus.
CryptoKitties have a unique identity that is uploaded onto Ethereum and contributes to increasing blockchain accessibility while concurrently preventing efficient user transaction times. The app currently has 3 million cats accounting for 14% of Ethereum’s transaction volumes and has sold over 22,000 including one transacting for $117,712.
CryptoKitties capitalise on a core blockchain DNA encouraging users to mate them and consist of highly desirable first-generation cats and four billion possible combinations.
CryptoKitties receives a 3.75% commission for breeding and selling auctions attracting users beyond early adopters.
Over $10mn Ether is documented to be circulating within Ethereum and CryptoKitties currently amount to 100,000 ETH per cat or $93.4mn. 35,768.51 Ether has also been traded on CryptoCountries’ systems including Crypto All Stars which encourages bidders to buy digital Collectibles from owners and users receive 50% royalties for fees.
EtherBots’ transaction volume leveraged $1mn displacing CryptoKitties’ crypto Collectibles monopoly as gamers access cheap materials and exclusive access to Lamborghini inspired robot parts. The market is exponentially increasing and constitutes platforms such as OPSkins and WAX integrating games including CryptoFighters within the ecosystem.
CryptoFighters deploys cryptographically unique collectible fighters and ERC721 tokens incentivising players to utilise OPSkins and WAX. OPSkins attracts over two million weekly transactions, contains millions of active users and a further 200,000 monthly new users.
WAX is a utility token supporting a decentralized platform incorporating advanced security, infrastructure and payment processing for over 400 million users seeking blockchain trust and transaction verification. Hash Puppies will also be hosted on NEO’S robust peer-to-peer trading platform.
Decentraland proffers a decentralized crypto collectable platform enabling users to monetize content, games and applications comprised of virtual space represented by a non-fungible token LAND identified using cartesian coordinates. OPSkins’ platform executes 2 million weekly transactions and attracts 200,000 new monthly users.
ERC875 is a new decentralised standard for non-fungible tokens and cheap atomic swaps as ERC721 has substantial drawbacks such as causing congestion. ERC875 stores tokens in arrays transferred in multiples by specifying each index preceding lower network transaction burdens. ERC875 generates cryptographically signed messages containing the deal price, expiry date and signature processed off chain broadcasted at settlement.
Crypto Collectibles proffer sophisticated gameplay mechanics for virtual objects’ trading and constitute direct player to player interaction.