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What are Crypto Collectibles?By Krishna Vishwakarma | Oct. 1, 2018, 4:45 a.m. GMT
A crypto collectible is a digital asset. They are similar to real-world collectibles but are digital.
Crypto collectibles are represented via crypto tokens. These tokens are typically built on Ethereum Blockchain network. Ethereum has its own set of standards when it comes to building tokens on its platform. The two most popular ones are ERC20 and ERC721.
There are two types of crypto collectibles. Fungible and non-fungible collectibles. Fungible collectibles are alike. Such tokens are represented by ERC20 tokens. All the tokens are the same.
Non-fungible collectibles are unique. There is something unique about each collectible making it different from the rest of the non-fungible tokens. Such tokens are represented by ERC721 tokens. Every ERC721 token is unique in some way.
There are a lot of things that can be collected from cats to celebrities, and from politicians to planets. In gaming environments, they can be exchanged between players, and between platforms. Also one can possibly buy someone’s collectible without their permission.
Can we make money from digital collectibles?
If you have an especially rare or high valued collectible, then you can make money in exchange for collectibles.
Generally, collectibles are grouped into categories. Some of them are quite common while others have unique attributes which make them rare or even legendary.
Price of a crypto collectible can go up due to various reasons. It depends on the platform which has created the collectible. The platform can define a set of rules which would direct the price of collectibles. Let's take an example of a platform which hosts crypto collectibles of football players. The platform decides to link the price of the collectibles based on the performance of players in real-world matches. So, if Messi plays well, the price of a crypto collectible representing Messi goes up.
As you can see, it is possible to make money from these collectibles. However, it’s worth doing your investigation before getting involved in investing your money in tokens.
Where are these crypto collectibles stored?
The crypto collectibles are generally stored in a crypto wallet. Depending on the type of collectible, the wallet would need to support either ERC20 or ERC721 compliant tokens.
Why is Blockchain needed for these collectibles?
Blockchain helps prevent false replication and enables ownership to be tracked.
For people purchasing real-world collectibles, like an artwork, a lot of investigation is required to ensure its authenticity.
Blockchain eliminates a plenty of this work, as there is a tamper-proof record of everyone who has owned a collectible in the past.
Although ERC20 compliant tokens are commonly used, there is an issue of divisibility. If crypto collectible was on an ERC20 token, it would be possible to sell a quarter of your collectible item. This is why ERC721 compliant tokens are used more often in crypto collectibles. The ERC721 are unique and non-divisible and are increasingly being used to ensure that assets remain indivisible.
Games involving Crypto Collectibles
There are a number of games depending on the collectibles involved.
- The Ether Quest
The Ether Quest offers a fantasy role-playing game where users can collect unique fighters, train them and can use them in battles. New warriors can be mined through something known as a ‘summoning ritual.’
- The 0xUniverse
The 0xUniverse allows players to buy a planet and use their resources to build a spaceship. The players can explore the virtual galaxy and can conquer new planets along their way.
- My Cryptons
In MyCryptons, users can purchase digital collectibles of public figures, ranging from Barack Obama to Donald Trump. Each Crypton comes with an artist's handcrafted image. The users can add humorous or sarcastic “gaglines” below images and can share them on social media.
- Blockchain Cuties
In Blockchain Cuties, cute animals and fantasy creatures can be collected, bred and also put to the test in battles. The more experience these cuties gain, the more they ‘level up.’
- Crypto Kitties
CryptoKitties allows players to purchase, collect, breed and sell various types of virtual kittens. Every kitten is unique. By December 2017, the decentralized platform had surpassed $12 million in sales with one rare kitten being sold for $120,000.
- Crypto Jingles
CryptoJingles allows users to purchase sound samples, mix it with other sound samples to create best sounding jingle. Each composed jingle is unique. A user can share or sell her jingles.
- Crypto Countries
CryptoCountries allows users to buy and own countries. As soon as a user acquires a country, she will take ownership of that nation and the price of that nation would double.
I hope that you now have a good understanding of crypto collectibles. Give it a try and create your own collectible. It will be fun.