[HN Gopher] The Collapse of CryptoKitties, the First Big Blockch...
       ___________________________________________________________________
        
       The Collapse of CryptoKitties, the First Big Blockchain Game
        
       Author : cycomanic
       Score  : 203 points
       Date   : 2022-09-15 18:27 UTC (4 hours ago)
        
 (HTM) web link (spectrum.ieee.org)
 (TXT) w3m dump (spectrum.ieee.org)
        
       | [deleted]
        
       | yellow_postit wrote:
       | CryptoKitties was a great initial introduction (for me) into the
       | mechanics of setting up a wallet, transferring funds, trading
       | nfts,etc. The wild monetary value swings definitely captured the
       | BeanieBaby mentality they were aiming for as well.
        
       | O__________O wrote:
       | Know zero about NFT market caps, but if I pull up few years on
       | the site below, hardly looks like a collapse:
       | 
       | https://nftgo.io/collection/cryptokitties/overview
       | 
       | Anyone with more knowledge able to clarify?
        
         | mumblemumble wrote:
         | I think that you can get your answer from the tooltip on that
         | market cap widget:
         | 
         | > Market capitalization is calculated as the sum of each NFT
         | valued at the greater of its last traded price and the floor
         | price of the collection, respectively.
         | 
         | So their market cap calculation does not attempt to capture a
         | current fair market value for all outstanding CryptoKitties.
         | For a non-fungible asset like this, just using the last sale
         | price like this will always give a lagging indicator. In some
         | sense, you could argue that it lags the fair market value by a
         | possibly infinite amount of time.
         | 
         | Concretely, this method would assume that the Dragon
         | cryptokitty that the article discusses has been worth a
         | constant 600 ETH that hasn't fluctuated by even one iota in
         | over 4 years.
         | 
         | I don't know how much better one could do for a market cap
         | calculation. It certainly wouldn't be practical to individually
         | appraise all 2 million cryptokitties on a regular basis.
         | Perhaps one could look at how prices of more frequently traded
         | cryptokitties have fluctuated over time and use that to
         | generate a scaling factor for the old ones. But even that might
         | have downsides. How do you account for the possibly large
         | percentage of cryptokitties that belong to wallets whose keys
         | have been lost? It doesn't make sense to count those into the
         | market capitalization, because they are no longer part of the
         | market. The method being used at least has the advantage of
         | being clean and objective. It's just not particularly _useful_
         | , is all.
        
         | CaveTech wrote:
         | There's no liquidity. The market cap is pure fabrication based
         | on historical sales, there's no current day sales, so no way to
         | pull money out of that cap.
        
         | elcomet wrote:
         | Market cap is not really significant, if the sales are down.
         | Most of the market cap is from old sales.
         | 
         | I could create a new coin with a huge market cap very easily:
         | I'm creating 1,000 billion coins, and I'm selling to a friend
         | one coin for $1, then never selling anything again. The market
         | cap is now $ 1,000 billion right?
        
           | Animats wrote:
           | Yes, but to realize it, you have to get (bribe) a major
           | exchange to list your coin.
        
       | cwkoss wrote:
       | It hasn't collapsed, the endgame is just a much much higher
       | difficulty
        
       | secretsatan wrote:
       | I read these articles sometimes about crypto games, but they all
       | never seem to describe the actual game, it's like crypto is the
       | primary concern, and game is secondary, and i'm getting the
       | distinct impression none of these games are any fun and everyone
       | in the space has to avoid mentioning it.
       | 
       | I think that the people writing these things only have a very
       | slim grasp of gaming, but they know it would be a good market to
       | capture
        
         | Melchori wrote:
         | Gaming with being able to earn money is something I normally
         | call gambling or work.
         | 
         | It's depressing to think about it.
         | 
         | And yes people who made gold in wow were also not gaming but
         | working. It wasn't cool, fun or whatever 10 years ago
        
           | px43 wrote:
           | The status quo in gaming today is that people work thousands,
           | or 10s of thousands of hours building, collecting, exploring,
           | etc, and it's all owned by some emotionless gaming company
           | that might just decide to delete all your stuff, or just
           | disappear all together, without notice. Giving players
           | control of the things they worked hard to get just seems like
           | the natural progression as we assign more and more value to
           | the lives we live in virtual spaces.
           | 
           | Vitalik famously was first inspired to build Ethereum when
           | Blizzard nerfed a sword he had in World of Warcraft.
        
             | root_axis wrote:
             | The idea makes no sense unfortunately. If the game dies so
             | does the meaning of the NFTs. It's even more pointless in
             | the context of Vitalik's WoW example because the NFT has no
             | relationship to the game mechanics, the creators of the
             | game could trivially nerf, alter, or remove previously
             | minted NFTs at their own discretion.
        
             | cowtools wrote:
             | Yeah I guess, but grinding/mining is not sybil proof. So
             | the only thing that cryptocurrency improves is replacing
             | that with buying and trading items with actual money, or
             | mining stuff with PoW.
             | 
             | You couldn't have a blockchain equivalent of World-of-
             | Warcraft. You have no meaningful way to testify that you
             | recieve an item from killing a boss, for example.
             | 
             | The only thing you can really implement with cryptocurrency
             | is a market game, gambling on the outcome of a game, or
             | crypto-tokenized items/stats. These have their own problems
             | as well, mostly being that their development structure is
             | usually not decentralized enough to warrant the use of
             | cryptocurrency.
        
               | lmm wrote:
               | > You have no meaningful way to testify that you recieve
               | an item from killing a boss, for example.
               | 
               | Surely you could have a smart contract that implements
               | that (and, in the extreme case, I guess you submit the
               | random seed for this boss fight and a hash of the button
               | inputs you used or something - of course there's no way
               | to stop you using a bot to automate pressing the buttons
               | at the right time, but that applies to real WoW too).
        
               | cowtools wrote:
               | I have considered this already. That does not solve
               | anything here, for the reasons you have mentioned
               | yourself.
               | 
               | To the extent that it is broken in world-of-warcraft, it
               | will be more broken here because there will be fees
               | associated with playing, so players will be incentivised
               | to make the most of their money by cheating and trying to
               | optimize the smallest possible "proof".
               | 
               | Eventually, so many people will cheat that the actual
               | game is considered to be a minor nusance. It's like TF2
               | idle servers. You incentivise players to not play the
               | game.
        
               | Kerbonut wrote:
               | Game boss dies, triggers a web3 call which mints the NFT.
               | What's the problem?
        
               | AgentME wrote:
               | Having a regular commercial centralized game with
               | decentralized NFT items is an awkward halfway point that
               | doesn't get you the full benefits of decentralization.
               | 
               | If the game itself is decentralized too, that changes
               | things, but it's unclear if it's possible to make a game
               | like WoW like that.
        
               | cowtools wrote:
               | Who gets to trigger the web3 call? a centralized server?
        
           | reidjs wrote:
           | Gambling and gaming are quite interconnected, maybe you can
           | describe it as a spectrum between games and gambling. Free
           | single player games are the 'purest' games, you're only
           | betting that it's worth your time. Cheap single player games,
           | you're still gambling in that you're 'betting' the game is
           | worth your time and $5. Closer to the gambling side are
           | things like Poker, CS Skins, the Diablo Auction House, Eve
           | Online mining, etc. Probably the purest form of gambling is
           | slot machines, since they are purely random chance.
        
             | acdha wrote:
             | This is leaving out the most important part of the
             | incentive structure: most books are entertainment and their
             | value to the reader is based on things other than money.
             | That means they're not interchangeable and people make
             | decisions based on things like the author or publisher's
             | reputation as opposed to the current exchange rate.
        
             | glitchc wrote:
             | This is an absurd argument! By that logic buying a book is
             | akin to gambling: You don't know how good it is until you
             | start reading.
             | 
             | Books have nothing in common with gambling except for the
             | books about gambling.
        
               | hinkley wrote:
               | People with absurd notions very often conflate the
               | colloquial definition and the precise definition of words
               | and then try to draw conclusions out of the confusion.
               | Like anti-science people who talk about theories and
               | theories.
        
               | reidjs wrote:
               | I sort of mixed up risk and gamble in that analogy. I
               | stand by the part that many games fall on a spectrum
               | between "game" and "gamble". counter strike, wow, eve
               | online are games with a gambling element: loot boxes,
               | skins, etc. Poker is a gamble with a game element, e.g,
               | bluffing. Slot machines aren't games at all.
               | 
               | I think cryptokitties is somewhere between Poker and Slot
               | machines.
        
               | firebaze wrote:
               | I suppose I'm overlooking something, since I cannot
               | follow this line of reasoning.
               | 
               | When I buy a book, I usually don't know its contents
               | beforehand (the exceptions are I had copied it somehow in
               | my earlier years, and now I want to buy it to come clean,
               | or it is a classic I just never bought yet).
               | 
               | Most of the time, I rely on a friends reference, or a
               | review online, or maybe I just buy by chance. And in
               | either of these cases, there is a less than 50% chance I
               | perceive the book as good. Which, to me, is a gamble. So
               | I suppose there is an edge I don't get?
        
               | admax88qqq wrote:
               | Not all "risks" are "gambling"
        
               | Karellen wrote:
               | That... actually makes sense to me. You're gambling the
               | cost of the book that the amount of enjoyment you get out
               | of it is worth the time it took to read it.
               | 
               | If you enjoy the book, your payout is those feeling of
               | enjoyment. If you lose, the price is the cost of the book
               | and the time you wasted reading it - but you have the
               | paltry consolation prize of a now-second-hand book that
               | you can sell at a loss to a used book shop.
               | 
               | And you can affect your odds of winning or losing, by
               | going with a genre or author that you already have an
               | affinity to (or not!)
        
           | UberFly wrote:
           | You are obviously not a gamer or understand the appeal.
        
           | coding123 wrote:
           | I also had fun making gold in Skyrim, which was offline. I
           | don't recall it being work, but whatever.
        
             | bombcar wrote:
             | It can be a puzzle with a built in score and fun, but
             | rarely are these direct-to-cash games fun.
             | 
             | D3 got much better when the real money auction house
             | closed.
        
               | px43 wrote:
               | In my opinion, nothing has ever come close to the rich
               | economic system that emerged naturally in Diablo 2. Maybe
               | it just hit me at a good time in my life, towards the end
               | of high school.
               | 
               | I spent probably half my time playing that game just
               | doing arbitrage trading. For example a sorceress or
               | necromancer would always give you 4-5 Perfect Skulls for
               | a Stone of Jordan (SOJ) ring, and you could pretty easily
               | buy an SOJ from a barbarian or amazon for 3-4 Perfect
               | Skulls. Through nothing but these trades I was able to go
               | from a couple SOJ (the most valuable 1x1 item in the
               | game) to about 40 or 50 over the course of a few months.
        
               | bombcar wrote:
               | There was a stable economy time where there weren't
               | continual "buff patches" dumping more and more items, and
               | it was a good time.
        
               | supernewton wrote:
               | I mean, the real improvement to D3 was they massively
               | upped the drop rate of rare items, which "coincidentally"
               | happened when they stopped taking a cut off people
               | selling their rare items for real money.
        
               | bombcar wrote:
               | Yeah. The money always causes a conflict with the fun.
               | Only the pure cosmetic games seem to avoid that when the
               | money flows.
        
               | csa wrote:
               | Very much agreed, but...
               | 
               | My favorite AH score was a max stat level 3 chest piece
               | that I sold for $25.
               | 
               | That piece was good for 5 or maybe 10 minutes of gameplay
               | at the start of the game.
               | 
               | I knew it was a premium piece for that level and type. I
               | knew they didn't stay on AH long. That said, I didn't
               | want to compete with all of the lower price point folks,
               | so i set the price to something absurd just to see what
               | happened.
               | 
               | I have no idea why they bought it.
               | 
               | I had much better late game stuff for sale for much
               | cheaper that never sold. It was a strange market -- I'm
               | glad it is gone.
        
               | bombcar wrote:
               | People would search by "best I can equip" and you caught
               | a whale.
        
             | jbverschoor wrote:
             | Offline is key here
        
         | TomGullen wrote:
         | Gamer sentiment is generally very anti micro transactions, all
         | the crypto games I've seen so far are micro transactions front
         | and centre on steroids
        
           | hgsgm wrote:
        
         | naet wrote:
         | Check https://www.cryptokitties.co/guide/ways-to-play
         | 
         | The reason it seems like they didn't describe the "actual game"
         | is that there is no actual "gameplay". You just pay to collect
         | cats.
         | 
         | You can trade the cat tokens them with other people, try to
         | sell them on the marketplace, pay to generate semi randomized
         | new cat tokens via "breeding", and... just have them under your
         | wallet / name. There is no action, no RPG, no platforming, no
         | game board... basically nothing besides collecting and swapping
         | tokens. They actually do show the entire "gameplay loop" in
         | this image from the article: https://spectrum.ieee.org/media-
         | library/a-flow-chart-with-ar...
         | 
         | They encourage you to collect more with timed events, where you
         | "win" a bonus for having collected a certain type of cat token,
         | but that's about it.
         | 
         | If you're of a certain generation, you might remember a craze
         | of kids collecting and trading Pokemon cards, and never really
         | playing the game. It's basically like that except there is no
         | underlying game to play, all you have are the tradable cards.
        
           | im3w1l wrote:
           | I remember the craze around collecting the cards without
           | really playing the game. And then, separately, playing the
           | game without collecting the cards, with the "Pokemon Trading
           | Card Game" for game boy.
        
         | alanfalcon wrote:
         | CryptoKitties is a lot of fun, for what it is. It's super deep
         | and while it's more of a sandbox than a typical game, I became
         | obsessed with it when it came out, though not for monetary
         | reasons (if it has one huge drawback as a game, it's always
         | been how much it costs IMO).
         | 
         | Became so obsessed that I ended up hired by Dapper Labs and
         | working on the CryptoKitties team, later helped design and
         | launch NBA Top Shot on Flow. Now that we have (the markedly
         | cheaper and easier) Flow and lots and lots of lessons learned
         | from building NFT products, I'm excited for us to bring the
         | next generation of CryptoKitties to life.
         | 
         | If you want to check out a fun crypto game that just recently
         | launched from another developer, I urge you to check out
         | dimensionxnft.com with an open mind.
        
           | davidcbc wrote:
           | Color me surprised that the person claiming to have enjoyed a
           | crypto game is trying to shill a different crypto game
        
           | Chabsff wrote:
           | You cannot have a conversation about "crypto games" without
           | addressing how crypto makes the game better. For the sake of
           | this conversation, it doesn't particularly matter how fun
           | CryptoKitties is. What matters is how does the blockchain
           | integration make the game better than it would otherwise have
           | been.
           | 
           | From my point of view so far, even the best crypto game out
           | there would have been better if it wasn't for the crypto
           | aspect of it.
           | 
           | If this ecosystem is to provide value beyond the potential
           | for making money, then what is it? It's hard to be excited
           | about something that only has downsides.
        
             | alanfalcon wrote:
             | So I've been thinking about this and working on this for
             | years, so I have a different perspective. Is everything
             | fully better for having blockchain integration? Clearly no.
             | Are the benefits worth the trade-offs? I'd argue yes, on
             | the whole.
             | 
             | 1. The global worldwide market place. While this introduces
             | commerce/real money, which come with very real downsides,
             | it also makes the game high stakes (meaning most people
             | play to the best of their ability). WoW and other games
             | showed how much a vibrant marketplace can add to a game
             | experience for some players, and having everything trading
             | for essentially real money doesn't change that underlying
             | level of engagement.
             | 
             | 2. Permissionless development. While there are many
             | examples of attempts at building on top of CryptoKitties
             | fizzling out, there are also success stories, especially
             | around "WCK"--a fungible token created by an unaffiliated
             | third party developer that essentially created a worldwide
             | "Give a Kitty, Take a Kitty" pool that let you send away
             | any cat you didn't want and get back one that you
             | preferred. And because it's on the blockchain and uses
             | blockchain standards, it can also be used as liquidity and
             | barter, both of which add to the experience. I don't
             | believe I've ever seen something like this built on top of
             | a non-blockchain game... certainly it wouldn't be quite as
             | easy as this was to build! Some examples of other third
             | party creations include an auto-breeding platform, a Kitty
             | racing game, a Kitty battling game, Kitty cosmetics (your
             | cat NFT can own its own hat NFT!), and a trustless Kitty
             | bounty smart contract.
             | 
             | 3. Almost unparalleled transparency. This has all kinds of
             | fun side effects from allowing the community to fully
             | "check the work" of the developer to what amounts to an
             | open-to-everyone API. And what's more, this is a
             | standardized API so that someone who builds tools for
             | CryptoKitties would be able to also use those tools for
             | Cheeze Wizards. Again, there are amazing third party tools
             | built on the backs of APIs of online games all the time,
             | but it's actually cool how much you get "for free" by being
             | on the blockchain. The verified fairness is pretty cool
             | IMO.
             | 
             | 4. Immortal assets. I poured a lot into City of Heroes back
             | in the day, and then one day the devs shut down the server,
             | and took all my heroes with it. This is a very common
             | refrain. As long as there are nodes out there running
             | Ethereum, anyone can breed their Kitty NFTs. That's not
             | nothing. (There's a lot of nuance here about art assets, IP
             | rights, user interface, etc., and it's messy and still very
             | much being figured out, but that's how the world works--you
             | build it, then you improve it!)
             | 
             | 5. Value capture. Yes, this almost always has evolved into
             | speculation and nonsense valuations and irrational
             | behavior. But still: when you buy a Kitty, you have the
             | right to sell that Kitty. When you breed a new Kitty, you
             | have the right to sell that Kitty. This is enabled by
             | blockchain almost for free! Note this is distinct and
             | different from point 1. WoW has a marketplace, but when you
             | earn a legendary BoP sword, you cannot then capture that
             | value by selling it if that's what you want to do. This
             | point is as often riddled with downsides as it brings
             | upsides, but the unique and novel truth of it makes it
             | better than a non-blockchain game for some people.
             | 
             | Again, this comes from years of being in the space, playing
             | with these toys, building these systems, being a part of
             | these communities. For some of us, this has been incredibly
             | exciting, and fun, because we chose to explore and figure
             | out for ourselves what upsides this new frontier might hold
             | for us.
        
               | ohgodplsno wrote:
               | 1/ Making people play to the best of their ability.
               | 
               | People have always been insanely competitive, without
               | bringing in a token in the middle. All you're doing is
               | making it impossible to play (or not lose money) if
               | you're not trying your hardest, all the time.
               | 
               | 2/ You're really going to pretend you've never seen
               | communities make their own services on top of a game? The
               | only real difference is that it is fully automated in
               | this case, but service markets have existed forever. Path
               | of Exile has a whole discord with tens of thousands of
               | users just to exchange things.
               | 
               | 3/ Only if Cheese Wizards is a carbon copy of
               | CryptoKitties, just changing names. Otherwise, data
               | structures are different behaviours are different, and
               | your work just has to be redone. Like in the current
               | world. But it's true, at least it's open.
               | 
               | 4/ You gotta really fucking love your game if you're
               | willing to keep minting (and therefore paying) for NFTs
               | that are worthless and unusable anywhere else
               | 
               | 5/ This is an absolute cancer that has made every single
               | game that added real money trading objectively worse. It
               | makes every interaction with your game make you take into
               | account the potential money loss. Like making your
               | kitties spin? Too bad sucker, that's not the optimal
               | money making strat, enjoy feeling ever so slightly bad
               | every time.
               | 
               | The only useful point is the openness of the API.
               | Everything else are things we already do in games (good
               | and bad), but worse. Anyone in this industry not seeing
               | this has either zero experience with games, or
               | destructive tendencies just to make a bit of cash on
               | misery.
        
               | Chabsff wrote:
               | Thank you for the verbose answer, though I disagree with
               | most points.
               | 
               | 1) "having everything trading for essentially real money
               | doesn't change that underlying level of engagement." It
               | has been long established that this is absolutely the
               | case. A classic example of this would be Diablo 3's RMAH
               | effectively destroying the game by having the entire
               | economy be driven by real-world profit-seeking grind
               | 
               | 2) I consider this to be very misleading. All of these
               | intra-game features are not made available by the
               | blockchain itself, but by the details of the various
               | Smart Contracts involved. In that sense, the set of
               | instructions available to would-be developers to interact
               | with a game is going to be limited by the operations (and
               | the various rules governing them) that are present in the
               | smart contracts. If a game features permission-less
               | development like this, it's because its developers have
               | decided to make the requisite operations available and
               | documented. This is no different than a regular
               | documented public API.
               | 
               | 3) I see nothing preventing this from being done without
               | the blockchain.
               | 
               | 4) This is the one potentially interesting wrinkle, but I
               | find it to have marginal interest at best. Assets are
               | inherently immortal unless explicit steps are taken by
               | developers to prevent them to be. What is actually at
               | play here is Immortal Entity Ownership, aka Immortal
               | Scarcity. That's very interesting from a revenue-making
               | potential, but not really much more than that.
               | 
               | 5) That does not make the game itself better though.
        
               | px43 wrote:
               | #2 is the most important one to me, so I'll address that
               | specifically.
               | 
               |  _MOST_ games I 've seen don't provide a public API for
               | players to interact with, and even when players do
               | reverse engineer them, they get accused of cheating,
               | hacking, whatever, and often get their accounts banned.
               | 
               | In the world of blockchain gaming, it's trivial to build
               | tools and meta-games around anything, and there's
               | basically nothing that the original developers can do to
               | stop it. I can host a small bit of static HTML that gives
               | users the ability to battle cryptokitties with each
               | other, and capture each other's kitties. Then at the end
               | of the day, the winner can go back to the main
               | cryptokitties site, and breed their new kitties like
               | normal. I don't need to ask anyone's permission, and all
               | I need is a stable place to land some HTML, and maybe
               | deploy some contracts depending on the level of
               | integrations I want to build. I don't need to apply for
               | an API key, or start up an email conversation with anyone
               | at Dapper Labs. I can just build it, and anyone with a
               | web3 capable browser can play along.
               | 
               | This is the magic of "permissionless" systems, and it's
               | the standard across the blockchain gaming ecosystem.
        
               | TylerE wrote:
               | These reads to me as: Haven for asian bot farms.
        
               | Chabsff wrote:
               | Sure, but my point is that the lack of blockchain
               | technology is not what's preventing most games from
               | featuring this, it's only the developer's willingness to
               | do so.
        
             | [deleted]
        
             | Kiro wrote:
             | HyperDragons. Someone made a game where you bred dragons
             | that could eat CryptoKitties to absorb their attributes.
             | The composability and interoperability of the blockchain
             | means anyone can extend your game and build mechanics with
             | your assets, without your permission. It's truly an open
             | API.
        
               | anotherman554 wrote:
               | Unless the intellectual property _assets_ (art and
               | character designs) have been licensed putting them on a
               | blockchain does not make them legal to use.
        
               | pdntspa wrote:
               | And what here does the blockchain offer that a database
               | table doesn't? Other than the ability to monetize.
        
               | Kiro wrote:
               | The fact that I can build upon CryptoKitties with no
               | obstacle. If CryptoKitties was on a private database I
               | would need to get access to their API and also trust them
               | with the ownership/management of the assets. Now I can
               | just build it on the blockchain and have people destroy
               | CryptoKitties in my smart contract to get benefits in my
               | game. No API functionality or permission from
               | CryptoKitties needed.
        
               | lottin wrote:
               | So how does this open API works? Every time you use it
               | you have to pay a third party?
        
               | xboxnolifes wrote:
               | What do you mean? All of the data is on the chain. It's a
               | global "third-party" that everyone is a part of.
        
               | lmm wrote:
               | You submit the action you want to do, anywhere in the
               | ethereum network, and if it's valid (e.g. if you're
               | running an operation that destroys a kitty then you'd
               | better include a digital signature showing that you own
               | that kitty) then it will be accepted and published. You
               | have to pay a "gas fee" which in theory a) should be
               | pretty small and b) is what pays for the running of that
               | ethereum network. In practice under the current
               | implementation those fees got to be big enough that they
               | kind of killed cryptokitties, but this might be fixable.
        
               | landryraccoon wrote:
               | Couldn't that have been done equally well with a
               | centralized ledger? Lots of games have "high stakes pvp",
               | such as eve online. They don't have a blockchain, and yet
               | you can still steal stuff permanently from other players
               | if that's how you want to play the game.
        
               | Kiro wrote:
               | Let's say I want to build a game where you can destroy
               | your EVE Online spaceships to get bonuses in my game. How
               | would that work? That's what happened with CryptoKitties
               | and HyperDragons.
               | 
               | Just to clarify: someone who owns a CryptoKitty decides
               | to send it to the HyperDragons smart contract that
               | handles the absorption. It's not about stealing anything.
               | You use your assets in CryptoKitties to boost your dragon
               | in HyperDragons.
        
               | Chabsff wrote:
               | This is not inherently made possible by the blockchain
               | itself though.
               | 
               | The mechanisms to transfer a Kitty to the HyperDragons
               | lie within the CryptoKitty Smart Contract. This is not
               | particularly different than a regular API, where the
               | available operations have been chosen, specified, and
               | made available to the public at large by the developers.
               | 
               | The only real difference with a public-facing documented
               | traditional API is that said API will outlive the
               | original product. But that doesn't make CryptoKitties a
               | better game, since Cripto Kitties won't be a thing
               | anymore when that comes into play.
        
               | [deleted]
        
             | bcrosby95 wrote:
             | I view crypto as a good way to create an ecosystem rather
             | than just a single game. But to create an ecosystem
             | requires multiple games, by multiple companies. At the
             | center of it all, you probably need a selfless company with
             | tons of money to bootstrap the core IP, that simultaneously
             | cares very much about its IP but also doesn't care too much
             | so they let indies and amateurs experiment with it.
             | 
             | I can see the "end game" and it looks nice. But I don't
             | know how to get there. I don't know if its even possible to
             | get there given the hurdles involved - some of the required
             | attributes from the involved actors feels contradictory.
        
           | midislack wrote:
           | OK but WHAT IS THE GAME? What do you DO with CryptoKitties?
        
             | JeremyNT wrote:
             | Disclaimer: I haven't played it, but I read this article.
             | 
             | It looks like a pet breeding game. You "own" cartoon cats -
             | visual representations of distinctive bundles of
             | characteristics contained in a NFT. You generate more NFTs
             | by "breeding" two existing cats (executing the smart
             | contract), which results in random combinations of their
             | characteristics in offspring.
             | 
             | What to do with them? Speculate on their value, same as any
             | NFT.
             | 
             | As a "game" this sounds incredibly unsophisticated compared
             | to normal video games - something that might have passed
             | during the flash era of gaming, or maybe today on itch.io
             | as a weekend project. The only "hook" outside of this is
             | the speculation / potential to earn (and I imagine if
             | you're in on the scam, earning is a lot of fun).
        
             | alanfalcon wrote:
             | Breeding is a complex and nuanced game mechanic, which when
             | coupled with the worldwide marketplace unlocks a dizzying
             | rabbit hole. Once you understand the mechanics, you realize
             | just why a Gen 1 Tendertears would be a grail collectible
             | to own.
             | 
             | I called it more of a sandbox than a game, but there are
             | also Fancy Chases, events where a specific limited-time
             | breeding goal is introduced and it's a race to be among the
             | first to achieve this goal and breed a Fancy Kitty.
             | 
             | Not saying it's for everyone, but it's definitely something
             | that thousands of people found and find pretty darn fun
             | (again: if expensive).
        
               | opyate wrote:
               | Sounds like gacha, where folks feverishly "collect"
               | pointless pieces of little plastic. All these things
               | (hoarding, compulsive buying, gambling) go hand-in-hand
               | [0], and ends up emptying pockets and possibly
               | devastating lives.
               | 
               | 0: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3181956/
        
               | ohgodplsno wrote:
               | CK's breeding mechanics are about as complex as Pokemon
               | Gen1's breeding mechanics, and simpler than Gen3.
               | Congratulations on passing the GameBoy bar. Additionally,
               | all of the talk about openness is now out the window
               | since the breeding code is closed source.
               | 
               | Congratulations on also doing limited time events,
               | welcome to the year 2000 of online gaming!
        
               | alanfalcon wrote:
               | Just because it's tradition to not let "someone being
               | wrong on the internet" stand:
               | https://www.cryptokitties.co/blog/post/learn-how-our-
               | last-my...
        
               | DonHopkins wrote:
               | Maybe it's just fun to spend money you don't need, or
               | stole, or swindled, or need to launder.
        
               | secretsatan wrote:
               | I knew someone who described slot machines like that
               | 
               | He ended up declaring bankruptcy
        
             | reidjs wrote:
             | You can trade them, or breed them with other cryptokitties.
        
             | Sohcahtoa82 wrote:
             | There's a free mobile game called Clusterduck which is
             | basically the same idea but without the crypto nonsense.
             | 
             | https://play.google.com/store/apps/details?id=com.pikpok.wt
             | d...
             | 
             | https://apps.apple.com/us/app/clusterduck/id1531250914
             | 
             | You basically don't do anything except watch what weird
             | mutations come out from the breeding. In Clusterduck, you
             | can only have up to 30 ducks, so once you hit the limit,
             | you have to throw a duck into the pit to sacrifice it.
             | Sometimes when sacrificing a duck, a large monster spawns
             | from the pit, and if you tap it enough times, it'll spawn a
             | duck with a "cursed" trait of some sort.
        
             | digitaLandscape wrote:
             | You breed them. It reminded me of horse breeding games my
             | girlfriend used to play. Kind of fun. Not worth the ongoing
             | cost though.
        
               | midislack wrote:
               | For me it's the Mary Kate and Ashley horse breeding game
               | on the Game Boy Color.
        
               | hgsgm wrote:
        
         | xani_ wrote:
         | They are like porn games, the gameplay is not the focus,
         | fucking is.
         | 
         | Except it's you getting fucked in crypto.
        
           | john_alan wrote:
           | Mods?
        
             | [deleted]
        
             | jbverschoor wrote:
        
           | ycta202249823 wrote:
           | There are some porn games that are considered very fun and
           | even influential on the larger games industry, particularly
           | coming out of Japan such as Rance[0], a grand strategy series
           | that's run for over 30 years.
           | 
           | [0]: https://en.wikipedia.org/wiki/Rance_(series)
        
         | mrtksn wrote:
         | I remember when CryptoKitties clogged the ETH blockchain and it
         | has become unfeasible to do most of the transactions.
         | 
         | Anyway, the game is very simple and it actually makes much more
         | sense than the recent NFT fud. Essentially you combine
         | characters to create new characters that have some of the
         | traits of the parent characters. It's a breeding game.
         | 
         | I kind of see how it can be valuable to own an NFT character
         | with certain traits that can be used to create other NFT
         | characters. Unlike the recent NFT stuff, it makes sense within
         | its universe. The NFT market on the other hand is just a hot
         | patato game where you speculate that there exist a greater fool
         | in a rigged marketplace.
        
       | Glyptodon wrote:
       | In a vacuum I'd have assumed that attempting to make transaction
       | fees undercut things like credit card processing fees would have
       | been a key design goal of post-bitcoin block chains, so it's
       | surprising to me (as someone not terribly invested in keeping up
       | with crypto) to realize that transactions fees can be so high
       | (though in some ways I suppose it's kind of like combining title
       | registration with supermarket checkout more than it is just a
       | transaction).
       | 
       | But besides side chains are there other approaches to allowing
       | newer crypto currencies to be highly liquid and handle large
       | volumes of transactions at low cost? This issue seems like it's a
       | recurring problem for crypto.
        
       | mkaic wrote:
       | > What Went Wrong?
       | 
       | It's in the title of the article. It's a "Blockchain Game".
       | That's what went wrong. It was a flawed concept from its
       | inception. Blockchains are pretty cool from a math/cryptography
       | standpoint, but they really do not provide added value in _most_
       | areas people try to apply them to.
       | 
       | CryptoKitties is a digital trading card game. You get cards, you
       | can "breed" cards together to make new cards, you trade/buy/sell
       | cards. That's it. Nowhere at any point in this "game" is a
       | blockchain necessary. Nowhere at any point does a blockchain add
       | any value whatsoever. In fact, due to transaction fees, I'd argue
       | the blockchain actively detracts from the game.
       | 
       | The idea of an artist signing their work in a cryptographically
       | unique way is not new or revolutionary, and it _certainly_ doesn
       | 't need a blockchain. There's a reason the general sentiment the
       | art community has towards NFTs is overwhelmingly negative: it's
       | because they literally _actively harm us_.
        
         | saurik wrote:
         | In the real world, people play trading card games all the time
         | and a big part of the ecosystem is trading the trading cards.
         | Only, it is really annoying to have to ship around and maintain
         | physical cards, and I want my card collection in the cloud.
         | Some people would thereby prefer to play an online version of,
         | say, Magic: The Gathering, or whatever the Pokemon one is
         | called, etc.
         | 
         | The problem now is... how do you do the trading part? You could
         | go to the trouble of yourself building a marketplace for the
         | cards and then integrating all of the payment methods required,
         | and then dealing with all of the trust and fraud issues that
         | result from people sending money via banks or PayPal that they
         | later chargeback or refund, all while dealing with whatever
         | crazy tax implications come up from running a market.
         | 
         | But you don't want to do any of that: you want to code a game,
         | and it isn't like Wizards of the Coast is trying to take money
         | off of the aftermarket! They just make money by selling the
         | initial randomized official card packs. Because you went
         | digital now you are doing a ton of extra work and are wasting a
         | ton of time dealing with payment processing issues when none of
         | that is related to your actual business model or product
         | design.
         | 
         | And, at the end of the day, doing that giant marketplace is a
         | _hard job_ that other companies specialize in. If I told you
         | eBay provided some kind of digital asset API that let you
         | simply assign tracking numbers to products but then eBay kept
         | track of the ownership as it changed and all your game had to
         | do is ask  "what cards does this user still own?" when it
         | opens, I imagine a ton of developers would jump on that
         | bandwagon.
         | 
         | Only, eBay doesn't provide that API, and likely would avoid
         | doing so out of concern you would shut down the game on a whim
         | and cause them issues; and, even if they did, now your entire
         | game backend would then be built around a single marketplace
         | that might randomly pull your game for some reason and shut
         | down your entire company in a way where you are SCREWED as your
         | end-to-end ownership pipeline is modeled inside of eBay's
         | database rather than being something you control and can
         | migrate.
         | 
         | If only there were some off-the-shelf technology for tracking
         | digital assets that you could trivially add as a dependency to
         | your project, letting you write a few lines of code to define
         | your asset and which had APIs for querying ownership... one
         | which was an open ecosystem controlled by a shared protocol
         | instead of a single company, thereby allowing not just one
         | market but any number of competing markets with different ideas
         | on auctions or escrow to exist. Wouldn't that be amazing?!
         | 
         | Well: that's Ethereum; like, that's precisely what Ethereum is
         | doing. If you think collectible trading card games aren't a
         | dumb idea--and even if you hate them and think the premise is
         | bad for gaming, I am going to remind you that these things are
         | SUPER POPULAR and so your opinion doesn't in some sense matter
         | here as you are just ignoring reality--then Ethereum is a
         | GLORIOUS idea that makes it absolutely trivial for game
         | developers to build them and for users to participate.
        
           | yesimahuman wrote:
           | I think the argument that Ethereum/etc provide useful off-
           | the-shelf APIs/services for implementing something like this
           | might be the one point in their favor
        
         | reidjs wrote:
         | More accurately it can be described as a digital trading card
         | game built on Ethereum.
        
           | [deleted]
        
       | teraflop wrote:
       | One thing I don't see addressed in this article is that as far as
       | I know, it's basically impossible to trust the reported price or
       | volume of NFT transactions, because there's no way to distinguish
       | fake wash trades from real ones.
       | 
       | So it's hard to draw any conclusions about whether the data
       | reflects an actual peak in user activity, or just a peak in
       | scams.
        
         | yieldcrv wrote:
         | Correct, not possible if you dont want someone to know
         | 
         | But of you've ever traded NFTs its hard to really _begin_ with
         | the assumption that trading volume is fake because bots and
         | market makers buy from you so fast. _You_ know that wasn 't a
         | fake or wash trade, while there is a pervasive audience of
         | onlookers that are trying to prove a negative.
         | 
         | You know that funds in bankruptcy court have successfully sold
         | $30,000,000 worth of the NFTs on their books as ordered,
         | without issue or further controversy about where the proceeds
         | came from
         | 
         | You know that DAOs have liquidated $30,000,000 worth of NFTs on
         | their books as determined by the community, without issue
         | 
         | How much convincing does anyone need to move off of "its all
         | wash trading and money laundering" to "yeah thats possible
         | there is also lots of liquidity", it doesn't really make sense
         | to make the former perception their whole identity
        
           | simonw wrote:
           | "because bots and market makers buy from you so fast"
           | 
           | Does that still hold true today, or was that the case six
           | months ago before the NFT market crashed?
        
           | teraflop wrote:
           | Right, I'm not saying there's _no_ real trading, just that it
           | 's impossible to say how much. Which makes the graphs and
           | anecdotes quoted in the article a bit meaningless, IMO.
        
         | simsla wrote:
         | Isn't that always the case? My friend was talking about a rare
         | Magic The Gathering card being worth a silly amount of money...
         | Except the card had only been sold once or twice at that price.
         | 
         | Unless you have enough comparable items (e.g. paintings by the
         | Dutch masters) it's really difficult to determine the value of
         | something that's rarely sold.
        
           | _fat_santa wrote:
           | > Except the card had only been sold once or twice at that
           | price.
           | 
           | You see this practice in art and collector car sales. It's
           | rumored that if you see a painting go for an insane amount of
           | money, often these sales are between "friendly" parties for
           | the sole purpose of driving up the value of that art.
        
             | cphoover wrote:
             | see Beeple's 60M NFT sale as a great example
        
             | nly wrote:
             | The same can happen at low prices so that the owners can
             | claim the paintings have lost value and can offset some
             | other capital gains.
        
           | klodolph wrote:
           | Funny you should mention MtG, since the first big crypto
           | exchange collapse was MtGox.
           | 
           | I always thought it was "Mt. Gox", like a mountain of sorts.
           | Turns out it's Magic: The Gathering Online Exchange.
           | 
           | Edit: MtG seems like it has some kind of evergreen
           | popularity, and various format changes, changes in the list
           | of banned cards, reprints, and changes in the metagame will
           | mean that prices of individual cards can vary wildly over
           | time. So if something was sold for a ridiculous price a
           | couple times, it's possible that something changed
           | (Targmogoyf used to be very expensive, for example).
           | 
           | Wizards seems pretty good at catering to a variety of
           | players, both collectors and non-collectors.
        
             | conscion wrote:
             | This is only half true. From Wikipedia [1], the name did
             | originally stand for Magic The Gathering Online eXchange,
             | but the domain was only used for that purpose for a couple
             | months in 2007.
             | 
             | When it launched as a Bitcoin exchange in 2010, the unused
             | domain was "Mt. Gox" from the beginning.
             | 
             | [1]: https://en.m.wikipedia.org/wiki/Mt._Gox#Founding_(2006
             | %E2%80...
        
             | wyldfire wrote:
             | It did pivot away from its ancestry and at that point it
             | was indeed referred to as "Mount Gox".
        
               | mikepurvis wrote:
               | Indeed, and that's even the branding used in the
               | Wikipedia article on it:
               | 
               | https://en.wikipedia.org/wiki/Mt._Gox
        
             | DonHopkins wrote:
             | Not to be confused with the Berkeley Unix software company
             | called "Mt Xinu". (The operating system's name is a
             | recursive acronym, while the company's name is a backwards
             | spelling.)
             | 
             | "We know UNIX TM backwards and forwards." -Mt Xinu
             | 
             | https://en.wikipedia.org/wiki/MtXinu
             | 
             | Famous for the great posters they handed out at Usenix:
             | 
             | "4.2 > V" BSD -vs- System V, X-Wing / Death Star Poster
             | 
             | https://www.ericconrad.com/2008/12/
             | 
             | I love all the old telephone equipment in the explosion!
        
             | milesvp wrote:
             | The old magic the gathering game blog had a lot of good
             | game design topics. One of the articles talked about the 3
             | or 4 player archtypes they tried to design for. Worth the
             | potential rabbit hole.
             | 
             | https://magic.wizards.com/en/articles/archive/making-
             | magic/t...
        
           | spearingthehead wrote:
           | It does happen a lot in physical collectible markets. It is
           | what happened with WATA Games and the lawsuit against their
           | employees for market manipulation through auctions. Or the
           | Nike scandal with a VP's son using her CC and employee
           | discount buying massive amounts of hyped sneakers and
           | reselling them, which just made everyone more aware.
        
           | ryukoposting wrote:
           | Trading cards and NFTs have a lot in common.
           | 
           | - Scarcity, artificial or otherwise.
           | 
           | - Subjective value. Neither an NFT or a trading card provides
           | substantial, measurable utility to its owner. But, we can
           | agree they have "value" of some kind.
           | 
           | - Lack of oversight. Governments doesn't have entire offices
           | monitoring irregular sale prices for Obelisk the Tormentor or
           | Mickey Mantle.
           | 
           | - Low transaction volume. If you're the only market-maker,
           | you can set your own price.
           | 
           | These attributes lead me to believe that NFTs and trading
           | cards would both very effective tools for someone trying to
           | launder money.
           | 
           | You can take away any one of those attributes, and the asset
           | would become much more difficult to use for money laundering.
           | For NFTs, oversight seems inevitable in the next couple of
           | years. One can only hope.
        
           | __MatrixMan__ wrote:
           | "value" is kind of a made-up thing, so I'd argue that by
           | selling something for the first time you're setting its
           | value, not determining it
        
             | maxbond wrote:
             | It's important to note that price, the last traded price,
             | and value are all distinct concepts. The last traded price
             | is the only one of these we can measure ahead of time, so
             | we often use it as a metanym for these other concepts. But
             | we don't know the price of something until we make a
             | binding offer on it and it is accepted; that doesn't
             | necessarily mean the next transaction won't be very
             | different, we just have heuristics about how the next price
             | ought to look. But it's the process of negotiating a deal
             | or bidding on an auction that defines the price, not the
             | historical prices. If you go to a grocery store and see
             | that milk costs $5.25, and you remember last week it costs
             | $5.00, you don't say the price is wrong; you understand
             | that this is the offer the store has made you, and that the
             | price has gone up since your last visit.
             | 
             | When the oil futures went negative, it wasn't the case that
             | the value of oil was negative - this was about the
             | structure of the market and the sorts of positions people
             | were caught in when the pandemic hit. We continued to
             | consume oil throughout the pandemic, and so I'd say we
             | continued to value it.
             | 
             | Another example would be, if a rancher has a lot of cow
             | poop, they might pay a farmer to take it away. You could
             | say that the cow poop has a negative price on it. But the
             | farmer is going to make use of it as fertilizer; from the
             | farmer's perspective, this is a commodity that has value.
             | 
             | It's true though that there are a million theories of value
             | and it's impossible to say what something's value is
             | definitively, you can only make a decision about what is
             | value is to you.
             | 
             | But when wash trading is and to impact the perceived value,
             | it does so fraudulently; it supplies information to traders
             | - "there is a lot of interest in this security, and the
             | (last traded) price is rising" - which is a lie. Some
             | people will argue this too is a normal and healthy part of
             | markets, but I don't think they've given enough thought to
             | what sort of equilibrium that game will settle into.
        
           | notahacker wrote:
           | There's a big difference between an illiquid market where
           | wealthy collectors are so keen to hang onto things they only
           | change hands at crazy possibly-not-to-be-repeated prices and
           | a fake market where the illusion of deep-pocketed collectors
           | is created by the auctioneer and owner colluding to _pretend_
           | an item changed hands at a massive amount of money.
        
             | samatman wrote:
             | The amount of wash trading in the fine art world is
             | certainly not zero.
        
               | notahacker wrote:
               | True, but I don't thing wash trading is integral to
               | convincing people that fine art is something people
               | want...
        
               | DuskStar wrote:
               | There's perhaps a difference between an original DaVinci
               | and whatever the latest paint splatter on canvas modern
               | art is, though.
        
               | vkou wrote:
               | I'm pretty sure it's integral to convincing people that
               | ~99% of the >$1,000,000 fine art is something people want
               | enough to pay the 'going' price for.
        
         | arcticbull wrote:
         | Or selling NFTs to yourself to launder money.
        
           | renewiltord wrote:
           | How does that particular thing work? You run the exchange,
           | then have dirty untraceable money traded on the exchange to
           | dirty participant and you take the exchange fees? You'd have
           | to KYC both participants, right?
        
             | officialchicken wrote:
             | Not everyone, the "participants" in the chain (typically
             | 8-10 addresses) can arbitrarily inflate pricing by only
             | paying fees which are trivially covered by the final trade.
             | Once inflated, that final address can use a "mixer" to exit
             | (for example) and essentially if KYC is performed in the
             | conversion to fiat, it's after the mix and relatively
             | untraceable.
        
             | stouset wrote:
             | Buy a "rare" NFT with clean money. Sell it a few months
             | later for some multiple of the original price, the "buyer"
             | is still you but using dirty money.
             | 
             | NB: I work in fintech but have no particular experience on
             | the fraud / KYC / AML side of things. This is just how I
             | imagine it would work at a high level.
        
               | renewiltord wrote:
               | But if you do that, I think you'd be first on the list of
               | people investigated for the dirty money. It has to be
               | cleaned in some way by obscuring it.
               | 
               | The approach described here seems more plausible
               | https://news.ycombinator.com/item?id=32857382
        
             | polygamous_bat wrote:
             | Imagine you have $X million from a hack on wallet A, and
             | you want to launder it. First, you run it through tornado
             | cash (RIP) a few times and move them to wallets B1 to
             | B1000. Then, you mint an "exciting NFT collection" on your
             | public, KYC'd wallet C, list them on a "decentralized
             | exchange", and have wallets B1 to B1000 buy those NFTs.
             | Even better, seeing how fast your NFTs are selling out, a
             | few suckers join in on the stampede and get mixed in
             | alongside B1-B1000. Well, now on wallet C you have $(X -
             | gas fees - minting fees) etc., that is totally legal and
             | clean. You cash out on Coinbase, give the taxman his due,
             | and you are good to go!
        
               | renewiltord wrote:
               | The Tornado Cash tumbler allows you to create sort-of-
               | Sybils so it looks organic. The no-KYC Dex allows you to
               | push from a no-KYC account to a KYC'd account. The KYC'd
               | account lets you withdraw fiat.
               | 
               | I see. Okay, each of the pieces are necessary. Thanks for
               | the explanation.
        
               | yieldcrv wrote:
               | Only need to do Tornado cash once, and you can still do
               | that, it still works
               | 
               | Nobody cares that you sold your nft to a virgin address
               | funded solely by the tornado cash relay
        
               | jaywalk wrote:
               | > Well, now on wallet C you have $(X - gas fees - minting
               | fees) etc., that is totally legal and clean.
               | 
               | It's not "legal" at all, because it's still proceeds of
               | crime. Although it may "appear" legal and be very
               | difficult to trace back to the source, it's still not
               | actually legal.
        
               | ForHackernews wrote:
               | Yes, that's how money laundering works.
        
         | zeroclip wrote:
         | > there's no way to distinguish fake wash trades from real ones
         | 
         | Ah, like that $532M Punk wash trade that was clearly visible
         | on-chain?[1] I guess we'll never know if it was real or fake.
         | 
         | [1] https://decrypt.co/84756/no-someone-didnt-really-
         | pay-532-mil...
        
           | rnk wrote:
           | Please explain your comment for the rest is us. Was that a
           | sarcastic "it really happened because it made it to the
           | chain" or a "we'll never know whether value was exchanged
           | from one person to another because the owner of both wallets
           | could be the same person" - or both, neither or?
        
             | zeroclip wrote:
             | Commenter said "there's no way to distinguish fake wash
             | trades from real ones" and I showed a case where a wash
             | trade was, to anybody looking at it, very obviously fake.
             | 
             | I agree with the other part of the comment. Blockchains do
             | not track "persons" but "wallets" and so metrics like
             | "number of users" will not be accurate. But it is not
             | accurate to imply that it is impossible to recognize wash
             | trades. In many cases they are very obvious, and even can
             | be automatically flagged. In other cases - like with CEX
             | mixers - only the authorities can detect the fraud.
        
               | pas wrote:
               | OP probably meant fake wash trades and real non-wash
               | trade ones, not fake and nonfake wash trades
        
           | andrewmutz wrote:
           | How can we tell that the buyer and the seller are two
           | different people in real life?
        
       | fab1an wrote:
       | I feel that NFT pricing exuberance (or lack thereof) is
       | distracting both critics and even fans from the core innovation
       | here - 1. the capacity to signify a digital original and 2. to
       | decentrally organize ownership (though it's more like possession)
       | of these items.
       | 
       | The ultimate question for crypto as a whole is whether the mass
       | market wants digital possession that transcends a single
       | centrally managed database. Personally am convinced we'll get
       | there, but the onboarding mustn't happen through speculation, but
       | specific unique utility, mostly interoperability/composability.
        
         | yazaddaruvala wrote:
         | I'd like to read the op ed about the first painting that ever
         | sold for substantial money, and its eventual theft or
         | destruction.
         | 
         | Setting the scene: Before there were Banks, Mayors, Kings, or
         | Mob bosses. Some random town or village. The wealthiest farming
         | family has bought/fought (an exchange of a different type of
         | resource) for most of the land in the town. That family has
         | started to employ people on their land to build more wealth.
         | This family doesn't know what to do with their wealth. They own
         | all of the gold and jewels the traveling sales people bring by.
         | They have built a castle and store treasures in their vault.
         | They hire a militia to keep the peace. They have more money
         | coming in than they know what to do with. Even the people in
         | the town are happy. They now have a big wall paid for by this
         | family. The family's militia is no fun, but it really has kept
         | the peace. Trade is going well, and the towns folk haven't had
         | gone a winter hungry in years.
         | 
         | Scene 1: One day a traveling artist brings canvas with chalk
         | based drawing. A young adult from the wealthy family, called X,
         | have seen similar, but this one is big. Its bigger than ever
         | and connects with them emotionally. They want it. Sadly its
         | already been sold. The artist offers to get a second made and
         | bring it next month. However, X has connected with it
         | emotionally. They connect with it so much they don't just want
         | it, they want no one else to have it. They offer the artist
         | more money than the artist's lifetime earnings to never again
         | make chalk on canvas again. The canvas is hung up.
         | 
         | Scene 2: Everyone else in the town laughs/grumbles, "they spent
         | 10 lifetimes of our earnings on a big canvas of chalk?". "No so
         | that the artist would never make another". "... but the artist
         | doesn't even live here. Couldn't they just make another?"
         | 
         | Scene 3: 3 years later, the canvas is a big deal in town. To
         | some, laughable. To others, luring. Many more artists brought
         | over canvas of chalk and many wealthyish families bought them
         | for more reasonable amounts, but the wealthy family didn't just
         | have any old canvas of chalk, theirs was a "..." no other could
         | be made. The others are bought and sold, but their canvas is
         | priceless.
         | 
         | Scene 4 - Alt A: Its the middle of the night. A band of
         | thieves, orphans barely in their teens, an adultish figure
         | keeps them in order and has directed them into the castle. The
         | jewels and gold are in the vault, its very guarded but the
         | children don't turn right towards the basement. Everyone that
         | has tried for the vault has been hung in the town square. They
         | move quietly to the great room. Their orders are clear. They
         | pull down the canvas, open the frame, roll up the canvas, and
         | are out. (in the morning) The town bells ring. The streets are
         | a mess of militia. The thieves are already miles away and
         | meeting their fence.
         | 
         | Scene 4 - Alt B: There has been a multi year famine in town.
         | The town is upset, angry with the family. The solution is to go
         | to war! They do battle with the neighboring city. They just
         | happen to win. The cost was many lives but now they have enough
         | reserves to get through many winters. This doesn't solve the
         | actual root cause and the fields still don't make food. The
         | resources continue to deplete and the canvas of chalk was sold
         | at a massive loss to some close enough but far away town's
         | wealthy family. Mostly as a reminder / teaching tool for their
         | children not to "waste" money like X. "It drives a town to
         | famine".
         | 
         | Both versions of this story have happened through human
         | history. They just predate documentation. Meanwhile, Art today
         | can still be worth a lot of money.
        
         | simonw wrote:
         | Most regular people really, really need a working "I forgot my
         | password" feature.
        
         | manholio wrote:
         | > 1. the capacity to signify a digital original and 2. to
         | decentrally organize ownership (though it's more like
         | possession) of these items.
         | 
         | There is nothing novel in this. You could do it in Bitcoin too
         | by agreeing that a certain transaction structure that includes
         | a digital hash is a valid way to signify an original with that
         | hash, and a spend from that address represents an ownership
         | change.
         | 
         | It's simply a convention, and people don't do it because it's
         | mostly a useless diversion from established ways to record and
         | trade IP.
         | 
         | The true NFT innovation is the marketing gimmick that such a
         | convention has any real world relevance and somehow magically
         | makes the IP non-fungible. This enabled massive speculation on
         | essentially worthless (and fully fungible) IP, expressed in a
         | clunky and impractical distributed database.
        
         | sithadmin wrote:
         | The major distraction is that a 'digital original' is a
         | fiction. I can ignore your blockchain and make any digital IP
         | fungible.
        
           | smoldesu wrote:
           | Yep. Just to tack on - even if you minted a "master copy" of
           | your digital asset on the Blockchain, it still doesn't
           | represent anything meaningful:
           | 
           | - It doesn't guarantee that you are the first or exclusive
           | owner of this digital asset
           | 
           | - It doesn't correlate to physical ownership
           | 
           | - It doesn't hold any water in a legal sense, if you want
           | your ownership of an NFT to be ratified then you need to use
           | the same centralized avenues as everyone else
        
         | nonameiguess wrote:
         | The core failure seems a lot more fundamental than that to me.
         | The only things you can "digitally" possess are digital items.
         | But people don't care about owning blockchain entries. They
         | want to own paintings and houses. Property rights are a legal
         | matter, however. The only way ownership of a blockchain entry
         | can entail ownership of a physical good is if the law says so.
         | And, at least for now, law is centralized. Only the state can
         | make it and only the state can enforce it. If the entity that
         | arbitrates and decides property claims is centralized, whether
         | or not their ledger is also centralized makes no difference.
        
         | alasdair_ wrote:
         | >whether the mass market wants digital possession that
         | transcends a single centrally managed database
         | 
         | Even if the market wants this, it's certainly not what is being
         | offered. If OpenSea delists your NFT in their single centrally
         | managed database, it may as well no longer exist.
        
           | WFHRenaissance wrote:
           | This is a problem that's actively being worked on (SudoSwap
           | as an AMM for NFTs, Scatter.art as a competitor, et cetera).
        
         | sharkjacobs wrote:
         | "digital original" is on its face absurd
         | 
         | An analog original could be valuable or at least meaningful
         | because it's impossible to create an identical copy of anything
         | in which exists in the material world.
         | 
         | But there is no way to distinguish between two copies of
         | digital data.
        
       | stephc_int13 wrote:
       | My intuition about CryptoKitties and many other NFTs is that
       | market manipulation has been ridiculously easy and profitable,
       | everything is somewhat more scrutinized nowadays, but I think
       | that the scams and schemes are far from over.
       | 
       | Impersonating both sides of a transaction does not seem too
       | difficult, and not very costly, as long as the fees are kept
       | small.
        
       | dopidopHN wrote:
       | I agree with the part where they describe existing on chain games
       | as too simplistic. The handful I saw indeed sucks.
       | 
       | No skills really needed beside being able to click and pay the
       | initial fee.
        
       | Zaskoda wrote:
       | Calling CryptoKitties a "game" is a bit generous.
        
         | themagician wrote:
         | "Gaming" often refers to gambling. There is a whole world of
         | gaming separate from video games--online slots, poker, etc..
         | Intentional or not, most crypto games are much closer to
         | traditional gaming than video games.
        
         | xtracto wrote:
         | Wait until you learn about "game theory"!
        
         | bze12 wrote:
         | I'm always surprised that projects like cryptokitties are
         | referred to as games. I guess saying "game" makes it sound more
         | legitimate, but there's almost nothing to do with your
         | characters besides sell them.
        
         | cookiengineer wrote:
         | Everything is a game once you look for an equilibrium.
        
           | H8crilA wrote:
           | Newsflash: watching paint dry is a game (until the solvents
           | reach an equilibrium with the air).
        
         | minimaxir wrote:
         | It was the gateway to getting gamers interested in crypto/web3,
         | which resulted in the absurd "play2earn" concept which has been
         | the subject of justified mockery.
        
       | faangiq wrote:
       | CryptoKitties is the only interesting blockchain use case besides
       | BTC. It's over for ETHcels.
        
       | bze12 wrote:
       | There's an amusing mobile game similar to CryptoKitties about
       | breeding mutant ducks
       | https://apps.apple.com/us/app/clusterduck/id1531250914 , but it's
       | single player
       | 
       | (self plug) I'm also working on an NFT parody game
       | https://apps.apple.com/us/app/id1609874752 - it's a simulated
       | trading & collecting market for emojis.
       | 
       | I'm always confused why people call cryptokitties a game, there's
       | barely anything to play with. Maybe using blockchain makes it a
       | lot harder to implement actual game features, or maybe it just
       | corrupts your incentives lol.
        
       | yieldcrv wrote:
       | Yes, all nft collections suffer from supply dilution if the
       | creator wants to keep making money.
       | 
       | The "NFT" aspect distracts most from the obvious:
       | 
       | The physical collections market is hugely profitable, supply is
       | hugely manipulated and unknown, and we just had no transparency
       | into any of this until it went onchain
       | 
       | None of the consumer activity in the NFT _collections_ market is
       | really unique, we just get to see issuer revenue numbers in real
       | time and supply
       | 
       | All the market is saying is "wow I should really be selling stuff
       | to collectors"
        
       | Kiro wrote:
       | CryptoKitties was amazing and a pioneer before NFTs were even a
       | thing. You shouldn't conflate them with the current wave of play-
       | to-earn scams.
        
       | spywaregorilla wrote:
       | > Today, CryptoKitties is lucky to break 100 sales a day, and the
       | total value is often less than $10,000.
       | 
       | This seems shockingly high to me
        
         | j0hnyl wrote:
         | "Bluechip" NFTs like CryptoKitties become commodities that
         | people trade day in and day out.
        
       ___________________________________________________________________
       (page generated 2022-09-15 23:00 UTC)