What are Crypto Collectibles and How do They Work?


Collectibles are really popular currently. So, to understand everything about collectibles, first, you will have to learn about the technologies they use.

ERC-721: What you need to know?

There are many standards of tokens nowadays. The general type is ERC-20. These tokens took over 95% of all ICOs in the world. That is explained by the adaptability of cryptos between each other and with third parties (e.g., exchanges). In contrast to this type, ERC-721 tokens are Non-Fungible (NF), and they’re mostly applied for digitizing unique assets.

The main distinguishing feature of ERC-721 from the usual ERC-20 is the non-interchangeability of the first type tokens. That feature determines the extent of potential implementations of the standard.

The most substantial part of the ERC-721 functions corresponds to ERC-20.  These unique tokens have the same functions – name, symbol, total supply, balanceOf, and others. This is a necessary feature for ERC-721, as there are many daily situations in which token must be applied. For example, you’ll have to store your ERC-721 token in an ordinary crypto wallet, and this would be very hard if ERC-721 differed too much. But, as it’s known as a distinct standard, it has some specific characteristics connected with smart contracts – token ownership function was implemented. There was a need for tracking the movement of every token, as it is unique, and the new function was made for this goal. For this, the takeOwnership function has appeared.

The main field where ERC-721 is used is collecting.

What is crypto collecting?

Crypto collecting is using non-exchangeable tokens, unlike ordinary emblems that are similar and easily rearranged. Since their distinguishing features mean that none of them are identical, they are usually not comparable.

You can collect many items, from celebrities to cats, from planets to politicians. In the gaming industry, they can be exchanged between parties and other programs. You can purchase someone else’s collectibles without their consent, adding a competitive limb.

How crypto collectible games work depends on the type of games and collectibles used.

Getting rare collectibles will be based on the program you use. For example, at OxUniverse, scarce planets are collected through the design and construction of a higher-level spacecraft with radar systems and powerful engines. To get similar spaceships, partners must show the competence of individuals and use the wealth of asteroids that they have won so far.

Nowadays the estimated size of the global collectibles market is $370 billion. So, it’s obvious that creating a collectible game has a good chance of success.

Other examples of popular collectibles

From the very beginning, ERC-721 firmly entered the consciousness of crypto enthusiasts in conjunction with the fun game CryptoKitties. The name of the standard was created by Dieter Shirley in September 2017, but CryptoKitties became a synonym for ERC-721 in December of the same year. The game became the first to integrate the standard on an enormous scale. It made these tokens famous is known as CryptoKitties. The game went viral and raised approximately $12 million in investment.

CryptoKitties is essentially a collectible game where players collect, exchange, and cross unique digital kittens, each of which is represented by the ERC-721 token. The point of the game is to buy crypto kitties. Of course, some kittens randomly display rare properties, which makes them more expensive and precious than others. Then you can just trade, modify, or present them. Thus, a deficit economy is artificially maintained, which causes some koto tokens to fly up to tens of thousands of dollars, with an average kitten price of $25.

After the game became prominently successful, there were various games with pets rising in the sphere. There is even a game known as CryptoCelebrities, the purpose of which was trading celebrities. In this game, the greatest valued celebrity is Vitalik Buterin – the founder of Ethereum.

Another game, related to famous people, is MyCryptons that offers people the opportunity to purchase modern celebrity collectibles, from Mark Zuckerberg to Oprah Winfrey. Each collectible is decorated with a handmade image of the person he represents. Funny “slogans” can be attached below and distributed on social platforms.

The Decentraland project is a virtual world where the ERC-721 standard is used to reflect virtual plots of land. Each site is different not only in geographical coordinates but also in other properties, including topography and buildings. Decentraland can be compared to CryptoKitties, as both projects relate to collecting. At the same time, the first one offers a certain secondary meaning, represented by the creation of economic and political systems in the virtual world.

A game called MLB Crypto Baseball will provide the opportunity to buy and sell unique digital collectible avatars dedicated to specific moments in recent league matches. The developer of the game is Lucid Sight, a blockchain company specializing in the gaming industry, which has entered into an appropriate license agreement with MLB.

Not so long ago, famous sportswear company Nike announced it is going to present a collectible for its shoes. The pace of how fast worldwide corporations are creating their collectibles is indicating the popularity of the sphere. If you have an idea, don’t miss the chance.

Meanwhile our team have created a ZED RUN collectible, where you can collect horses, give them unique names, and even participate in horse races. In the first month of going live the startup sold virtual horses for over $100K.

If you have an idea of a virtual collectible this is the best time to give it a try, send us a message on [email protected] –  we will be happy to discuss the opportunity to bring it to life.

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