Many have a hobby of collecting items, whether they are cars, dolls or paintings. Since we live in a digital world, collectibles have gone from tangible to intangible. What makes a collection unique is the quality of the items, especially if they are rare or personalized. These items can be held, inspected and put on display. Yet, as society has gone digital, and so have collections. This includes crypto collectibles. How can cryptocurrency be a collectible? We don’t mean crypto as in cryptocurrency; we are talking about crypto as in cryptographically unique. According to CoinTelegraph, crypto collectibles are digital assets backed by non-fungible tokens.
Essentially, fungible means that a good or commodity can be interchangeable with another good or commodity of the same value. Take the U.S. dollar, for example. It can be interchangeable with another dollar since they are the same value. However, non-fungible means a good or commodity that is unique and it is not interchangeable with another good or commodity. You may have two identical paintings, but one of them is signed by the artist. Thus, the one that is signed is a non-fungible asset. Each non-fungible token has unique attributes and only a certain number of tokens can be generated. Also, crypto collections (non-fungible tokens) are built on the blockchain.
Crypto collections are becoming very popular, especially in the crypto space. Crypto enthusiasts are accustomed to digital assets. They don’t need to hold it (e.g. fiat currency) to understand its value. Those who own crypto collectibles subscribe to the same principle. A great example of crypto collectibles is the CryptoKitties project. It’s actually a game where you can collect, buy, sell and breed cats. Like a block on a blockchain, each cat is unique and cannot be altered or destroyed. There are other crypto collectibles to enjoy, such as CrystalVoxels, CryptoJingles and HyperDragons. Some crypto collectibles reflect real-world objects or animals. Panda Earth features real pandas that are tracked by the China Conservation and Research Center for Giant Pandas.
Crypto collectibles prove that the crypto space is expanding. Distributed technologies continue to reshape our world, from cellular networks to blockchains. It will be interesting to see the types of collectibles that will shift to digital assets in the near future.