Ethereum, the second biggest crypto project, is mainly used for two things right now: raising money through an ICO and breeding CryptoKitties. If you haven’t noticed (which would be very surprising), here is what it is all about:
CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed.
This project took off so well that it clogged Ethereum network and forced many ICOs to postpone their Token Generation Events. One example for all is a postponed ICO of a promising project SophiaTX.
CryptoKitties maybe sound like a joke to you and I am sure the founders are having a blast with it, but it showed why scarce digital assets are the future. Why?
Before blockchain, it was impossible to create a scarcity of digital assets.
Blockchain changed it all. However, scarce coins are just a beginning.
CryptoKitties are basically a better version of a Tamagotchi. You can not break it, forgot it somewhere, you can not go out of batteries and it will not stop working because of poor hardware made in China. On the top of that, you can be sure that your kittie is unique, you can easily trade it and breed new ones. It is fun, it is addictive and it is a serious business.
CryptoKitties are digitalized and tradeable Tamagotchi. So what else makes sense to digitalize?
Enter the world of virtual reality
Once the humans start to spend their time in virtual reality there will be a hunger for everything that humans love to have, to wear, to collect, to use in the real world. There will be a huge space for cryptowatches, cryptowear, cryptojewelry, cryptohouses and cryptoeverything. Because human needs will not change in virtual reality we will still want the same things and experiences.
It is still a long way to get there, however, augmented reality is a bit closer. Look at how the Snapchat and Instagram filters exploded in the last years. Once we create contact lenses that enable us to add filters to the real world we will see a huge demand for scarce digital assets that people can collect, use and wear.
It is not that difficult to see where things are heading. The big question is how we can leverage that.