Crypto Kitties was found in December 2017 by a Canadian startup Axiom Zen. Axiom Zen had its roots extended into diverse fields ranging from software development to virtual reality; however, Crypto Kitties has undoubtedly been their most successful project yet.
Essentially, the core team wanted to develop an Ethereum game that would allow everyone worldwide to own virtual cats created by smart contracts. Each cat created was unique with its distinct features such as colored fur, eyes, and hair.
Moreover, the virtual cats also had their gender, classified as Sire or Dames, taking their name from male and female horses. The mechanism was established on the basics of Human DNA. Like DNA, each cat had its unique characteristics. The technology that made this possible is known as the Genetic Algorithm, which has garnered a lot of attention to the platform.
Is Crypto Kitties a Cryptocurrency?
CryptoKitties comprise of no value outside of the network. They can not be traded or swapped with other digital assets, tokens, or coins over different exchanges. However, Crypto Kitties are classified as blockchain assets because many people are interested in paying money for them.
Crypto Kitties was established on top of the Ethereum blockchain. Crypto Kitties operate as ERC-721 tokens. There are many variants of ERC tokens, with the ERC-20 being the most popular and sought after; however, ERC-20 tokens are fungible therefore, they can not be distinguished from each other.
On the other hand, ERC-721 tokens are non-fungible, which means every token is distinct and verified. The non-fungible nature of ERC-721 tokens is why Crypto Kitties can create unique cats.
Crypto Kitties Background
The first Crypto Kitty was born in early December 2017. Since then, a new Crypto Kitty has been created by the Ethereum main net every 15 minutes, until November 2018. The first 50,000 Crypto Kitties were termed as the Generation-0 kitties.
Similar to real-life kittens, Crypto Kitties can breed with each other to make newer Crypto Kitties. Users can produce new Crypto Kitties if they own both a Sire and Dame. Additionally, users can also breed with other user’s cats; however, owners of the Dames get to keep the new Crypto kitties for a charge set by the Sires owner.
Crypto Kitties bred by users inherit different characteristics and attributes from their parents. The features of bred crypto kitties are generated randomly. Interestingly, the rarer the features of the newly born kitten, the higher the value.
Crypto Kitty Market
The Generation-0 Crypto kitties are the most valuable assets because of their fixed supply of 50,000. The Generation-0 Crypto kitties were initially owned by the platform developers so that they can keep all of the profits if they were to sell. Moreover, developers gain an additional 3.75% profit on every Generation-0 transaction on the Crypto Kitty Market.
The Crypto Kitty Market places operate similar to eBay; users can access and choose from a long, diverse list of Crypto kitties available to buy. After buying, their respective Crypto kitty are automatically sent to their ERC-721 wallets. Users can decide how much ETH they want to sell their Crypto kitties for. Once other users buy crypto kitties, the respective ETH is credited to owners’ wallets.
The Crypto Kitties market places have been an overnight success ever since it was launched in December 2017 with over 60,000 registrations and raking up over $5 million in sales in just the first week. The following week, Crypto kitties’ userbase had increased to over 150,000 users with over $15 million worth of Crypto Kitties sold.
Note: every time users buy, sell, breed, or trade crypto kitties, they will need to pay Ethereum’s network fees.
Crypto Kitties is an exceptional asset, it is dependent on the time you invest in the game and more. Moreover, it gives you the satisfaction of being a proud owner of another Crypto Kitty that could be worth potentially hundreds if not thousands of dollars.