Let’s forget about the pandemic but the things that happened meanwhile. The new millennium witnessed stellar growth in the popularity of non-fungible tokens. 2021 has started with a craze.
Digitization has taken over our life and even art. Art may seem strange, but it has become one of the most successful NFT sellouts till now. Artists are creating unimaginable art, pouring their emotions, memories, struggles, feelings, and everything into their digital art to make it eye-catching for the buyers.
Till now, we have seen a crazy amount of NFT sales. From abstract artwork to Facebook memes, everything has been selling on these NFT platforms with a heavy price tag. Artists are over the moon with their NFT sales.
The popularity of these platforms is growing gradually. If we talk about March to May 2021, there have been almost 20000 to 40000 unique buyers – making it the most number of individual buyers in a 30-day span.
While we are on the subject, let’s also talk about NFT platforms to clear your doubts and two NFT sale spots that have been eye candy for people.
What’s NFT Marketplace?
NFT means Non-fungible tokens. NFT relies on digital tokens. Each token in an NFT is unique and verifiable.
So, as these tokens are not generic and each cannot be changed or altered, there is no chance that NFT can be swapped. They can change owners, though.
Now, the NFT marketplace is where the most famous NFT related items are bought and sold. This digital trade has gained immense popularity.
One of the most prominent examples of NFT related items is CryptoKitties, where digitally animated cats are bred and sold to the highest NFT bidder. The role of NFT is to verify ownership through blockchain technology.
The scarcity of items plays a fundamental role in the value of these NFT items. More rare items are more expensive.
So, the next question you would have in your mind is, where can you buy and sell such NFT items?
The answer is simple – NFT Marketplace.
There are two emerging NFT marketplaces right now that most artists adore. We shall talk about them now and find out which one is going to be our choice.
These two options are:
- Rarible
- OpenSea
What is Rarible?
Rarible is an emerging NFT marketplace that aims to link sellers to their buyers. This platform wants to empower digital artists, meme makers, and model creators to sell their talents to a price reasonable enough to support them.
Rarible trades digital collectibles through blockchain technology. Rarible has stepped up the game by being more visionary. It was founded by Alex Salnikov and his partner Alexei Falin in Moscow in 2020.
The primary focus for Rarible is on art assets specifically as it wants NFT digital collectible markets to raise more. This is why it is similar to OpenSea.
Users use a process called minting the NFTs. Rarible is used to create minting. After minting, an artist can then sell their creations like music, digital art, ebooks, movies, and other stuff.
Rarible comes with software that allows the users to mint a token. They have to fill out a form that is available on Rarible’s website. After filling the form, they have to attach their original images and other information, such as a listing price representing what the owner does.
Through the Rarible platform, the user can create a new token on the Ethereum blockchain. Just like other Ethereum tokens, these NFTs can be transferred between the wallets using Rarible.
Rarible allows the Ethereum blockchain to embed the entire history of owners and transactions inside an NFT’s code. Both the buying and selling parties must pay the transaction fee, which would go to the Rarible network.
Rarible has a well-suited program for royalties as well. This program assists in the cash flows. The creators on Rarible are offered to set a percentage of future sales. These sales can be collected automatically by issuing a Rarible token.
This royalty feature brings a massive advantage to the artists and sellers as, unlike other typical platforms, NFTs can be altered and designed to pay immediate royalties to the artists.
That means that if an artist has set a 10% royalty on an item, they will receive that 10% immediately after its consequent sale.
Another advantage the artist gets is that Rarible offers the sellers to allow their content to be viewed as a fragment. For example, the potential buyers are only allowed a snippet or sneak peek of the art, movie, music, etc., they are interested in. Once they buy the relevant NFT, then the art is theirs, as well as the complete access.
If we talk about Rarible’s native cryptocurrency, then it uses RARI for operating within the platform. When you own RARI, you gain the ability to make specific changes inside the network through voting. For example, you can vote on changing the transaction fee or how that fee can be spent.
Voting through RARI is non-binding, and users still have the decision power over the Rarible Company.
Rarible is also working significantly on developing itself as an autonomous platform that would be run by the community. It’s also focusing on becoming a Decentralized Autonomous Organization where the users will be in charge of all the decisions taken inside the platform.
RARI tokens are limited like any other cryptocurrency. According to the rules set by Rarible, RARI cannot exceed the limit of 25 Million RARI. 60% of these tokens are reserved for Rarible users, and they will be distributed to sellers and buyers over the first four years. These tokens are distributed weekly to those who have sold or purchased anything from the Rarible market within a week.
What is OpenSea?
OpenSea claims to be one of the largest marketplaces for the buying and selling of digital goods. It is also the first decentralized NFT marketplace ever. OpenSea was founded in 2018 by Alex Atallah and Devin Finzer. The founders came up with the concept of NFTs that are now being used by almost every similar platform.
The claim from OpenSea is somehow correct because of the enormous amount of items available on the platform. You, as a user, can find more than 200 categories of items with affordable pricing here.
The OpenSea platform allows the users to digitally trade art, games, sport NFTs, trading cards, utility NFTs, digital collectibles, decentralized domain names, virtual worlds, and much more.
Many notable NFT projects such as Cryptopunks, Gods Unchained, and Cryptokitties prefer OpenSea as the trading platform. OpenSea also assists the users to trade their NFTs on a global scale without taking custody of those items inside the marketplace.
It also leverages a smart contract for trade. The users are allowed to store their assets in their wallets. Another interesting fact about OpenSea is that it only takes 2.5% of the purchase prices of the items.
This is the reason OpenSea’s software has met with an overwhelming response. Even when it was launched, it became successful in bagging 200 million dollars. More than 11 million assets have been listed on OpenSea.
Trading on OpenSea requires a minimal amount of trust. You don’t need to trust the other party or expect them to behave honestly. You don’t even have to trust OpenSea. The transactions inside this platform rely on technology through smart contracts, and there are no third parties involved, so you’re pretty much safe.
The transactions inside OpenSea are atomic, which means that either the whole deal happens or nothing happens. The typical agreement requires one party to take the initiative and the other one to reciprocate.
Both sellers and buyers agree and make a binding promise to transact at the determined price. When the promises pair, the deal takes place, and a single transaction occurs. If the deal goes downhill, then nothing happens on either side.
Just like any NFT marketplace, OpenSea has its wallet called MetaMask. It works as a medium to interact with the blockchain. OpenSea does not possess any of your assets, and it only provides peer-to-peer exchange. It stores the supplemental information, not the NFTs.
When you acquire a digital wallet like MetaMask, you need to have some ETH inside it for your NFT transaction. You can use other wallets too if they contain ETH inside.
Then you have to create an OpenSea account by performing two transactions. One to initialize your OpenSea account and the other to make your first NFT. You also have to pay OpenSea’s one-time fee for initialization.
Then you have to create a collection category where you can upload your first digital item to make it an NFT. Your digital signature, which is linked to your wallet, will be used to verify the transactions.
You can also add information and price tag in Ethereum to your item, or you can set the price to the highest auction bid. To make an NFT, you also have to pay the fees to Ethereum miners. This fee is called Gas.
The price for Ethereum gas constantly changes according to the demand. Its price is quoted in Gwei. One trillion Gwei equals one ETH. If you want to create a smart contract, start your OpenSea account or make your first NFT, then use Gas for it. Usually, the fee in dollars could be about $100 to $150.
The last step is to submit your NFT for approval. Once OpenSea approves it, it is good to go and be sold on the platform.
Rarible vs OpenSea
Now let’s talk about the stark differences between these two NFT platforms.
The Audience:
The audience serves as a defining factor in NFT marketplaces. If you want to trade blockchain-based NFTs using a smart contract, OpenSea would be the best choice.
Likewise, if you want a platform that focuses entirely on the creator and deals in buying and selling digital arts and collectibles, then Rarible would be fine.
Support for Training:
Training support is one of the most crucial aspects of NFT marketplaces. There is no use of an NFT platform if the user doesn’t know how to use it. Therefore, first-time users need to get a basic understanding of the process and tasks.
Both Rarible and OpenSea offer the documentation facility as part of programming. But Rarible steps up the game by including live online training to the users. OpenSea does not provide this feature of in-person webinar-based training.
Integration Tools:
Technology integration and tools are badly needed when you are adopting an NFT platform. You also should be worried about the outcomes of using other tools and their functionalities.
OpenSea is the biggest name in technology integrations, and it provides various tools too. You can have high-end tools like Metamask, Ethereum, Mintbase, Arkane, Authereum, Dapper, etc.
Rarible does not support integration tools like Coinbase Wallet, Torus, Metamask, Ethereum, and WalletConnect. However, if we compare it with OpenSea, then it is pretty limited.
Cryptocurrency:
Rarible has its own regulated cryptocurrency named RARI; meanwhile, Opensea uses Ethereum Blockchain as the default cryptocurrency in its platform.
Number of Users:
There is a difference in the number of users between Rarible and OpenSea. Rarible has roughly 11000 users, while about 20000 users use OpenSea.
Minting Difference:
In OpenSea, you mint your NFT when the item is being sold. First, you list and offer your art to the other party, and when it is sold, it comes back on the blockchain.
Meanwhile, if you’re using Rarible, then you first have to mint then offer your art. You have to pay huge listing fees for your art even if it is not sold.
The Final Verdict
Rarible and OpenSea both have their epic benefits. If you are an emerging digital artist who wants to sell your artwork and make a quick name in the NFT industry, choose Rarible. It will even help you with live online training on how to use the platform.
If you want more technology integration, smart contracts, and lower gas fees, then OpenSea would be the best choice.
