CryptoKitties gives us a little preview of the future of Ethereum’s blockchain network. The success of the first ever viral application built on the Ethereum blockchain has highlighted the limitations as well as the benefits of the platform.
Whilst the spotlight is on Bitcoin this week with the launch of Bitcoin futures, long-term Bitcoin hodlers and blockchain enthusiasts know that, regardless of the price of Bitcoin, the blockchain technology is still in development. The meteoric rise of the price of Bitcoin does nothing itself to solve the scalability problem. In fact, one of the main reasons why it is argued that cryptocurrencies are in a bubble is because widespread adoption of the technology lags behind the steep rise in price.
Limitations of Ethereum’s blockchain
It is no secret that, the Ethereum blockchain is also plagued by major scalability issues, that need to be resolved if it is to survive in the long term. CryptoKitties is a game built on the Ethereum platform, where you breed unique kittens and sell them on the Cryptokitty exchange. As CryptoKitties went viral it really started testing the limitations of the network, because blocks filled up and the number of unconfirmed transactions rose drastically. So much so, that if participation continues to rise, “crypto kitties” could bring the entire Ethereum network to a standstill. Fact is, CryptoKitties has put the scaling problem back into the forefront.
The Future of Ethereum’s blockchain
Of course, this illustrates the weakness of the existing decentralised cryptocurrency scalability. But truthfully, everyone who follows cryptocurrency knows about this inherent shortcoming already. What is more important is that, regardless of it being a game of collecting funny looking cats, CryptoKitties actually promotes real adoption of the technology.
Because each kitty is a token, the game wonderfully illustrates Ethereum’s blockchain, tokenized properties. As the benefits of tokenising assets become more prominent, such as ease of transfer and liquidity, many other things can be tokenized in the future. From goods to properties to funny kittens and why not unicorns. The technology is already here.