CryptoKitties are virtual cats built on the Ethereum blockchain that can be collected. Users can buy and sell these virtual cats using Ether, and they can also breed new cats that have unique characteristics and levels of cuteness.
"Blockchain" is the underlying technology that powers cryptocurrencies like Bitcoin. While CryptoKitties arent a digital currency, they offer the same security guarantees: each CryptoKitty is unique and 100% yours. It cannot be copied, taken away, or destroyed.