Familiarity with the concept of cryptopunk can be considered one of the most interesting topics of 2021. A set of digital art assets, called CryptoPunk, are represented by non-fungible tokens (NFTs) on the Ethereum blockchain.
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Familiarity with the concept of cryptopunk + what is cryptopunk?
Simply put, Cryptopunk is a collection of cryptographic pieces of art held by NFTs on the Ethereum blockchain. Currently, there are more than 10,000 small 8-bit punks with special and unique features, and the reason they are 8-bit is the 256 colors used in each piece. Cryptopunk is one of the oldest and most successful NFT projects and has inspired many artists in the field of digital currencies. The project also contributed to the development of ERC-721 network standards for collectible digital assets. In 2021, Cryptopunk was able to attract the attention of many people by selling million dollar pieces and registered its name in the ranking of the most expensive tokens in the world.
Read more: NFT training
Who was the creator of cryptopunk?
Cryptopunk was created in 2017 by John Watkinson and Matt Hall at Larva Labs in New York. This project was created as an experiment to combine the value of non-fungible tokens (NFT) and art, and after a short period of time, with the increasing popularity and popularity of this asset, today it is known as digital currency art.
To get to know the concept of cryptopunk and understand it, it is better to know that this asset is also considered a digital currency; But contrary to what you think, this digital currency does not work like Bitcoin, Akita, etc.
As we mentioned, Cryptopunk has 10,000 punk or small pixel images, which consists of 6039 male images, 3840 female images, some monkeys, zombies and space aliens.
How cryptopunk is made
Larvalbez Labs did not make this project available to the public, in a simpler sense, this project is not open source and all cryptopunk characters are coded and encrypted. Each character is made up of 24 x 24 pixels, and a total of 10,000 images were created in this way, each of which has unique characteristics. Note that none of these images are alike and each one is completely different from the others. At the time of the creation of this project, the ERC-721 standard had not yet been introduced, and the creators of cryptopunk were forced to create an ERC-20 token with unique characteristics for each punk. In fact, cryptopunk led to the creation of the Ethereum ERC-721 network.
The value of cryptopunk
At the beginning of the work, when it was a little difficult for people to get to know the concept of cryptopunk and the project still had no value, it was distributed among people for free. Of course, it was not completely free, only users had to pay for the transactions of the relevant transactions on the Ethereum network. But after the rise in the price of NFT tokens, cryptopunks also reached million dollar values. Today, the token “EVERYDAYS: THE FIRST 5000 DAYS” (EVERYDAYS: THE FIRST 5000 DAYS) created by Beeple is considered the most expensive non-exchangeable token with a price value of about $69,346,250.
In the second and third place is the pale alien punk with a headband and punk number 7804, which were sold with a price value of 7.58 million dollars and 7.57 million dollars, respectively. The price of these two punks was 4200 Ether, and the only difference between these two punks was the increase in the price of Ethereum, which caused the price of the alien punk to increase.
Getting to know the concept of cryptopunk + cryptopunk classification
To get familiar with the concept of cryptopunk, you must be able to understand the difference between their categories. The difference between punks is not only in the image, but the coding of each one is different. In the following, we will introduce you to the types of cryptopunks.
9 alien punks
24 punk monkey
88 Zombie Punk
3840 female punks
6039 Punk died
For a better understanding of the differences and familiarity with the concept of cryptopunk, you can see the complete list of punks on Larrolles website. Each image by carrying anything or any difference in appearance leads us to the concept that punks are different both in terms of appearance and in terms of coding. For example, only 68 punks have orange hair or only 94 punks have braided hair. Also, carrying any object such as a cigarette or a pipe, a hat, glasses, or for men a beard, a hairstyle, a frown or a smile, etc., all these things make each punk unique.
Also, to better understand the differences between punks, you can go to the official Crytopunks site and click on each character to see its features.
Advantages and disadvantages of cryptopunk
Features are the main part of getting to know the concept of cryptopunk, so stay with us to compare and better understand punks.
Cryptopunk’s resistance to inflation
Central banks print new money when faced with economic crises. After the injection of new money into the market, the traditional currencies experience inflation. But limited digital currencies such as Bitcoin and Cryptopunks are designed so that once their entire supply is mined, they run out and will not create new supply, so inflation cannot affect this model of assets.
Low transaction fees
The decentralization of some digital currencies makes them involve low fees.
Breaking the boundaries of sanctions
The biggest advantage of such currencies for regions under sanctions like Iran is that sanctions do not affect transactions.
Challenging the fiat currency (dollar)
Today, with the increasing dependence of people on digital currencies, the value of the dollar or the currencies that the world economy depends on is going down.
Considering the fluctuations in the price of digital currencies, you should not be influenced by the high growth of these currencies while you have no knowledge of that currency, and the fear of losing profit will make you buy a large amount of a currency at a high price.
It is also possible that the government bans these currencies, or that your access to your wallet is cut off for any reason, so investing in digital currencies requires a high level of risk tolerance.
How to buy cryptopunk
Along with designing and developing cryptopunks, LaRolbes has created its own marketplace on the Cryptopunk website. If you need to trade your property in this area, you can go to the mentioned site and register your buy or sell offers. As we said in the Gala digital currency introduction article, currencies that do not have a dedicated blockchain are called tokens. Nowadays, because most important digital currencies and NFTs use the ERC-20 network and the Ethereum blockchain, it is better to have an Ethereum wallet. By installing the MetaMask wallet, you can easily trade in Ethereum or other digital currencies.
You should also know that cryptopunks have entered the progressive non-fungible token market called OpenSea, which is under the Ethereum platform. Pixel punks work differently than other cryptocurrencies, and the main reason for this is the complexity of ERC-721 tokens. Complexity means connecting the value of one token to the value of another token. The complex process of these tokens takes place on the WrappedPunk platform and can be implemented with a Metamsky wallet that has CryptoPunk. Of course, converting any cryptocurrency with the ERC-721 standard to its original form, i.e. ERC-20, is easy.
In this article, we tried to explain the concept of cryptopunk in simple language. As mentioned, this token is a digital art asset that operates through non-fungible tokens (NFT) on the blockchain platform. So far, we have seen the significant growth of cryptopunk in the digital currency market. The market of this token is very active, so that more than 8 thousand purchases were made in this market last year, the average price of which was equal to 15.50 Ether. The total number of sales of this project so far is about 150,000 Ether, which, if we consider the current price, reaches about 370 million dollars.