Crypto animals are taking over Ethereum network

Virtual collectibles games like Cryptokitties, Etheremons, Cryptopets and Cryptopuppies are gaining more and more popularity and can cause Ethereum network transactions fees skyrocket
26 December 2017   2514

In the beginning of December of 2017 Cryptokitties became one of the most popular applications based on Ethereum network, which allowed its users to buy and breed cute kitties valued in Ether, and the kittens reached incredible prices in the market, letting AxiomZen company earn $25 million in one month selling kitties.

Currently there are more than 87 thousands cryptokitties and their price varies from 0,003 to more tan 1,5 ETH.

Cryptokitties rangeExamples of cryptokitties available for purchase

It was only a matter of time before someone wanted to repeat the success of Cryptokitties and more and more applications for buying and breeding crypto animals started to emerge.

For instance, a new phenomenon of Etheremon has started to gain popularity after the beta verson launch on December 20. Right now, the only thing you can do with Etheremon is keep them, which earns you a small amount of ETH every time someone else buys that same type of Etheremon. The prices for Etheremons range from 0.37 ETH, which is $298 to 1.2 ETH, which is respectively $966. 

Etheremons available for purchaseExamples of Etheremons available for purchase

The users of the collectibles game seem to like it despite the extremely high prices for pet Pokemons and despite the fact that one of the game's smart contracts now accounts for 2.82 percent of transactions on the Ethereum network and has caused transaction fees to jump. 

Moreover, there is another project called Cryptopets, which is scheduled to be fully launched in the middle of January of 2018. The users will be able to buy up to 20 different cryptopets, breed them, make them play and fight battles. The most expensive pet will be Unicorn, which will cost 2 ETH.

Cryptopets examplesCryptopets examples

There is also Cryptopuppies project, which is very little known about, and its official website states that the project is "coming soon", although some information about it can be gathered from twitter account, which already has almost 2000 followers.

In case with Cryptokitties the price for Ethereum transaction rose from $0.3 to $1.4 only in one week, and lead to the longer period of transactions processing with extra payments. 

If the number of such games increases, the Ethereum network might experience a serious test for strength.

Ethereum pending transactions queueEthereum pending transactions queue after the launch of Cryptokitties

At the moment of press, these are the main market parameters of Ethereum:

  • Average Price: $772,93
  • Market Cap: $74 651 233 573
  • 24h Volume: $2 188 920 000

We Need 100k Transactions\Sec, - Buterin

During the conversation with the head of Abra Vitalik noted that the developers are focused on several main issues - scalability, privacy and ease of use
21 March 2019   92

The founder of Ethereum, Vitaly Buterin, expressed the opinion that for the network of the second most capitalized cryptocurrency, it is vital in the long run to achieve a throughput of 100 thousand transactions per second. It is reported by The Daily Hodl.

During the conversation with the head of Abra, Bill Barkhidt, Vitalik noted that the developers are focused on several main issues - scalability, privacy and ease of use.

As far as the big problems, my top three at this point are probably scalability, privacy and usability. So scalability – the Ethereum blockchain right now can process 15 transactions per second. Really, we need 100,000.

Vitalik Buterin

Creator, Ethereum 

According to him, in the context of solving the problem of scaling, the Ethereum team has high hopes for sharding.

There are two major kinds of strategies that we’re working on for scalability. One is layer-one scaling and the other is layer-two scaling. Layer-one scaling basically means improving the blockchain protocol itself to process a larger set of transactions. And the main bottleneck with blockchains right now is basically every user has to download the whole blockchain. Which basically means the blockchain can’t hold more transactions than one guy’s computer can store.

And our solution to this, called sharding, basically means that you split up the different transactions to randomly selected, different groups of computers. And this basically means that the blockchain can process way more things than one single computer can hold. And that can increase scalability by maybe a factor of 1,000 or so, but then potentially even more, much later down the road

Vitalik Buterin

Creator, Ethereum 

According to Vitalik, Ethereum developers also continue active work on second-level scaling solutions.

So there’s two major classes of systems we’re working on in this regard. One is called state channels. And there’s a bunch of teams working on this. There’s a team called L4 in Toronto that’s done some really good work. And another project is Plasma. And there’s a lot of work that’s been done on that. OmiseGo is this decentralized exchange that’s building on plasma. There’s TheMatter. There’s more and more of these projects. And then, there’s one of our researchers, Karl Floersch, who has been working on implementation of a reasonably complete Plasma prime specification, which is the latest version of Plasma – which has some really cool features in terms of increasing scalability and reducing the amount of data you have to store.

Vitalik Buterin

Creator, Ethereum 

Discussing the problem of scaling, Buterin mentioned Bitcoin. According to him, developers should achieve a significant increase bandwidth of Ethereum network. Otherwise, the second cryptocurrency capitalization will not be actively involved in everyday transactions and a significant market share will remain behind BTC.

If Bitcoin wishes to just be a store of value, then realistically it’s probably fine, though I think they should switch to proof-of-stake. If they want to actually be a currency that people use for transactions, then I do think base-layer scaling, and also speeding up the blockchain and reducing block times at the base layer, is also something which is very important.

Vitalik Buterin

Creator, Ethereum 

On the last day of winter hardfork Constantinople hardfork took place on the Ethereum network.