Business & Finance

CryptoKitties Lags Behind Gambling Applications on Ethereum Blockchain

Since the advert of blockchain and cryptocurrencies on mainstream internet, incentives are the sources that have drawn attention of millions to the platform. This is why mining platforms like Genesis have made a name in the market with a customer base of millions who wish to pay for the memberships in return for their services, which in return help the user make money in the form of tokens.

Although the idea behind blockchain was to bring innovations to the world, but it was all negated when a gaming platform that was used for selling and breeding digital kittens broke blockchain when 11% of the transactions on Ethereum blockchain were made on CryptoKittens. As ethereum blockchain is facing the issues related to scaling, the digital kittens selling app clogged the network by its transactions and made the network slower.

The game sells unique cats to the players. Up till now, the game has managed to sell 322,575 unique kittens with an average price of $61.57, according to Crypto Kitties Sales. The company Axiom Zen which helps incubate digital startups and products, created Crypto Kitties. The vision behind them creating the digital kittens trading platform was to bring blockchain to the mainstream, bringing apps that people use regularly to the platform.

While the cuteness of the application harnessed the human nature towards its use, but recently, the ethereum blockchain clogging application found a tough competition. In fact, statistics show that Cryptokittens was left far behind by the gambling platform Formo3D.

According to the statistics, the most used dApps on ethereum platform are facing a tough competition by gambling apps. Formo gets the edge as it is one of the few gambling applications on blockchain, hence it gets a lot of attention. The reason why people get too drawn to such apps is explained by the co-founder of Dragos Dunica in an interview where he says,

You gamble some Ethereum, and it’s possible to get more. At this point in Ethereum, most of the people are looking for profit, to get something back.

The risk of the play and the probability of getting a payback seems to be a better and fair investment than buying non existent digital kitties over the network. This also explains the fact that recently, there were over 10,000 people playing Fomo3D on a single day, which in itself vouches for the app’s success.

There are countries like India, Pakistan and China where the government has restricted and deemed gambling illegal. In these countries, players already access the World Wide Web to use gambling sites, but they fear discovery of their identity. Hence, VPNs and IP hiding browsers are used to access such sites from those countries. The players seek a better and a feasible solution where their identity wouldn’t be an issue as the usual decentralization concept works, no government officials poking their nose in your business.

The main reason for the success of these apps on blockchain is the transparency of the platform, and the ability for the users to see the transfer of funds on the application. Usually in websites on the world wide web, the results of the games are changed by the authorities, blockchain provides a solution for this with transparency. Co-founder of Dice2win, Anton Ivanov said,

The whole point was to give people a tool to play games knowing that the results won’t be tampered with.

The only downside of blockchain gambling apps is that the platform doesn’t run on morals and the decentralization of the applications make it impossible for the authorities to close down the existing sinister projects. For example Augur brought the dark web trend of assassination markets to the common web, where the people bet over the life spans of celebrities, the most recent one being Trump.

All in all, the clear picture painted by the statistics of user engagement shows that people are most inclined towards incentive based applications rather than games or other platforms provided by blockchain. The platform provides enough freedom for the users to interact with the applications any way they want, it’s all up to their morals which direction they want their internet usage to go in.

Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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