Cryptopunks are digital tokens created on the Ethereum blockchain in 2017. They were designed by Larva Labs and released with a total of 10,000 unique characters. Each cryptopunk is represented as an 8-bit image that can be freely traded or collected like any other cryptocurrency token. They use ERC721 protocol which makes them non-fungible (each character has its own identity).
Each Cryptopunk is unique and indivisible, meaning they cannot be divided into smaller parts unlike other cryptocurrencies such as Bitcoin or Etherium. The rarity of each Cryptopunk depends on several factors including their aesthetic characteristics, age and number of owners it had during its lifetime. These features have made them attractive to crypto collectors who try to acquire rarer ones over time making some very valuable!
In addition to being collectibles, Cryptopunks can also serve as functional items for various applications built using decentralized technologies such as Augur prediction markets or MakerDAO lending protocols where users submit their punks as collateral in exchange for loans denominated in stable coins like Dai .
Finally ,due to the popularity of CryptoPunks many projects have been developed around this concept creating derivatives assets known collectively under “punk” moniker . Examples include CryptoKitties from Axiom Zen – based off cats instead punkerz –or ChibiFighters which uses similar NFT system but set up inside video game environment .
