The digital world wants to be a closer version of reality. He wants us to live a world created by man; where we get to play gods. So similar to the real world, everything is over. Precious metals like gold and silver for natural resources like water and land have the innate quality of being limited, except humans … we keep on coming.
The quality of being scarce adds value to this and with its exhaustion, the value increases. Things are endless in the digital world. They are strings of a number of codes or numbers that can be copied a number of times. This is the reason why things have no value. It's like living in a world, where everyone is like you. Every stretch you found in everyone, then there would be nothing special about you.
To make sure things rise in value as they run out, digital scarcity is what makes its magic. To understand it, we must first know what digital abundance is. It is a point of view that the Internet knows how easy it is to copy someone's data. The creation of the Internet is what has led to problems such as piracy and the proliferation of data. The intellectual property of someone else like songs or movies can be stolen so easily.
The ability to control the quantity of a certain good and the way it is exchanged paves the way for two important things. First, the value is added when the thing is running out. Secondly, the property of each product is identifiable as it is stored on a blockchain.
Blockchain remains an integral part if digital scarcity should occur. It allows you to stage this artificial scarcity and to make the user think that it is running out when it is simply designed to look like that.
We have seen this concept in the game of collectible cats based on blockchain called CryptoKitties. Cute cats and basic technology is what made it so popular among its users. Built on the Ethereum network – at its launch somewhere at the end of 2017 – it has slowed the platform and used almost 25% of the network's resources to its maximum.
Since cats are bred with a different combination of traits, some are rarer than others. Each cat is one of a kind, which introduces the concept of scarcity. The unique features are what makes it a competitive terrain. People must breed a combination of rare traits to sell them for value later.
The simple analogy for this is to think about the time when Pokémon cards were one thing. People exchanged cards in exchange for rare cards. I still remember that I gave up almost half of my collection to get Charizard from my brother.
Well, CryptoKitties does the same. People have sold their kittens for up to $ 100,000!