File photo: A man walks past an electric board showing currency exchange rates of various cryptocurrencies including Bitcoin (top L) at a cryptocurrencies exchange in Seoul, South Korea December 13, 2017. (REUTERS/Kim Hong-Ji)
A flood of demand in the buying and selling of digital cats that the cryptocurrency Ethereum a crawl last week after the unexpected question of hiding the network. The cats are sold, called CryptoKitties, ultimately 25 percent of Ethereum question and earned the host site, 4.5 million page views about a week after the digital cats launched.
CryptoKtties can be bought, sold and grown with the help of aether, a form of cryptocurrency, and the system is based on unwavering digital transaction systems are known as a blockchain. While the game itself was intended as a cheap form of entertainment and educate people about the blockchain, the technology behind cryptocurrencies such as Bitcoin and Ethereum, the internet had a mind of its own.
Since CryptoKitties’ launch, some females have sold for $100,000 and CryptoKitties users have exchanged at least $1 million on the site.
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Blockchain’s goal is to facilitate simple, direct transactions between individuals, without intermediaries, as companies get in the middle, but a quick popularity spikes products such as CryptoKitties is testing the limits of the blockchain products and the scalability of specific cryptocurrencies.
On the other hand, fun games based on the blockchain open a possibility to a wider audience to the system.
Fox News spoke with Elsa Wilk, Head of Marketing for Axiom Zen, the parent company of CryptoKitties, and Benny Giang, Cryptokitties community manager, to learn more about the rush for Cryptokitties and what this means for the future of cryptocurrencies.
Fox News: So, why kitties?
Benny Giang: Cats are the mother of the internet. Since the advent of the internet, you have piano cat … there’s memes, gifs everywhere, the hour of footage on YouTube of cats. I think that cats was a logical step for us, because cats coverage of the internet, and they are now taking over the blockchain. And who doesn’t love cats?
Fox News: Why did you choose Ethereum, as the only currency?
Giang: Number one, it is one of the first works blockchains that is very focused on building an ecosystem where are the actual products. We have chosen Ethereum because we can really build CryptoKitties because they make use of smart contracts as part of the blockchain, in comparison with all other that you can see, Bitcoin, Litecoin, most of them are only a store of value and most of the time it is a transfer of the monetary value. So for us, we really wanted to make a product, and the use of smart contracts is the best way to do it.
Fox News: Since cryptocurrencies are not a leader such as a bank, there is someone to stop with a product of the slowing down of a currency, or to a halt?
Giang: The blockchain does not come to a standstill. It is an incentive structure, so that the miners will just keep on increasing the gas price. We convert the standard gas price by 25 Gwei [similar to filling a car with gas], and we just had to bump that to 40 in order to add an incentive for miners to add (the transaction).
Fox News: So what happens is that as it is becoming more and more busy, the miners will just keep bumping up the gas price and it will just make it more inaccessible for every day people, that is kind of defeating the purpose of CryptoKitties.
Giang: really big mission is to blockchain and Ethereum and make it accessible for everyone in the world. Now, in terms of scale, if you look at the numbers, I think that Visa can process thousands of transactions per second, and Bitcoin is six or seven transactions per second, and Ethereum is a 15. So what will happen is that costs will rise so much that only the 1 percenters could breed pussy or sell their pussy, and that will continue to happen as more people come on.
Fox News: Should there be a porter to keep cryptocurrencies fair for a large audience, or would that defeat the purpose of these currencies?
Giang: I absolutely think that this should not happen. That would defeat the entire reason for blockchain. The Ethereum Foundation and other members of the community involved, they really need to think about a better solution. Now, we are in conversation with people in the community who are experts in scaling, but from what we have said, we need a solution yesterday as the whole world comes to some kitties.”
Fox News: How does this type of virality of the other games we’ve seen go viral, like Pokemon?
Wilk: We think it’s a good thing that the game is decentralised and all the benefits that come from anything on a blockchain. But, of course, we do not store your data or available, or leak to the public or to any of the negative connotations of the things that we have seen through things such as file leaks where your information is sold on the black web.
Fox News: What do you think of the potential for fun, almost trivial products, as a way for people to learn about cryptocurrencies?
Wilk: I think that is why we created this. We wanted to make the blockchain more accessible to the man in the street, and we wanted it in a fun way. We have so many people reach out to us and say, “Hey, I taught my children about the blockchain through the use of Cryptokitties” or people who say that their children want to CryptoKitties for Christmas. If you look at anything else in the crypto space right now, each of the portfolios, they are not easy to use. They are not intuitive.
Fox News: What do you do to ensure CryptoKitties is scalable to the point where you don’t have this delay forever?
Wilk: There are a number of steps are taken now by the engineering team to facilitate, and the nature of the exponential growth in the tools that we need to use the scale for the longer term. Although the growth was really fast, I think that our engineering team has done a great job at keeping things running and scaling the product at the fast rate we needed. There Is also something to be done to the actual Ethereum blockchain now, and the conversations we have with people who are very closely connected to the project will not only allow us to the scale of the IU, but also our ability to cats on the blockchain.
Fox News: Demand for CryptoKitties delayed Ethereum so much last week that a company had to delay the planned First Coin to Offer. What does this say about the way in which this cryptocurrency economy work?
Wilk: Cryptocurrency economy, it is still in its infancy really. If you look at the adoption by users worldwide, we are talking about less than 1 percent of the world here. There are a lot of things that still need to be sorted out. … Unfortunately, the nature of the beast is such that we create in real-time. … The state of the larger cryptocurrency sphere is that there are some growing pains and there are a number of things that are invented.