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Rarible is a non-fungible token (NFT) marketplace that offers interesting services to NFT creators and buyers. It is one of the companies that is helping shape the future of NFTs.
In this blog post, we will discuss Rarible’s mechanism, token, and future direction.
Introduction to Rarible
The Rarible network is a crypto marketplace that allows the buying, selling, and issuance of non-fungible tokens (NFTs).
The Rarible platform is the brainchild of Alexander Salnikov and Alexei Falin. Both of them are New York-based. Salnikov has participated in many cryptocurrency projects since 2013. On the other hand, Falin helped establish a company that created a marketplace for digital stickers that could were useful in various chat platforms.
Falin’s expertise as a full-stack developer combined with Salnikov’s financial and business acuity provided the pillars of what would become Rarible marketplace.
Their goal was to create an NFT marketplace that no longer needs a middleman for the selling and buying of NFTs. Therefore, in the marketplace, buyers and sellers directly transact with each other.
Rarible was built on the Ethereum blockchain. Hence, users need to acquire ETH if they want to gain access to the platform’s services.
Digital art sellers link up with buyers using the platform. However, they must follow a process in order for their work to become an NFT.
Crypto assets represent the works that these artists made. There are different digital assets that creators can sell on the site. If you are a painter or illustrator, you can make money from your digital artworks. This system caters to a diverse array of interests among investors.
Rarible utilizes two standard NFT tokens, the ERC-721 and ERC-1155. With ERC-721, users can create one-off unique items. On the other hand, ERC-1155 is useful if a digital artist wants to create several editions of a specific item.
Additionally, the central cryptocurrency is RARI. It is an ERC-20 governance token that grants its owners voting rights that can influence Rarible’s development.
Active users who own RARI tokens can submit and vote on propositions about changing the rules in the Rarible ecosystem. Some things that people will vote on are changes in fees, budget spending, and rules that affect how creators can promote their works.
RARI is a limited token with a supply of only 25 million. It has a circulating supply of 11.58M tokens.
Selling and Buying NFTs on Rarible
Artists and creators can mint their own NFTs. First, users need to “mint” a token using Rarible’s software. They will need to accomplish some forms, submit their picture, and include a listing of their prices. Then, the software produces the new token on the Ethereum blockchain.
They have the option of whether they want to sell their NFT or simply store it in Rarible’s space. Artists need to pay two kinds of gas fees when they mint an NFT for the first time.
The first fee will grant your wallet access to use Rarible. While the second fee is known as ‘call the mint function.’ This puts your file in an Interplanetary File System (IPFS) and the Ethereum blockchain. These two fees are the costs of using the Ethereum blockchain and do not go directly to Rarible.
The successive minting will no longer ask creators to pay a minting fee. They will only pay a transaction fee that depends on the network’s congestion.
One impressive feature of Rarible is its capability to accommodate royalties or rights to future cash flows within the crypto assets. Digital artists can specify a percentage of future sales that they want to receive and collect them through the issuance of tokens.
This is one of the major reasons why non-fungible tokens exploded in popularity. Unlike traditional content platforms, NFTs can be set in such a way that it immediately pays out royalties.
Advantages and Disadvantages of Rarible
Some advantages of using Rarible are:
- Artists do not need to pay an upfront fee for minting non-fungible tokens.
- The software design and interface are beginner-friendly. People who don’t have prior experience with blockchains won’t find it difficult to use the platform and marketplace.
- RARI tokens are used to reward users.
- RARI token is crucial to operating and maintaining the ecosystem. Owning Rarible enables an individual to participate in important decision-making activities.
- There are only a few restrictions on the interactions between a seller and buyer. Despite these minimal restrictions, the platform is generally safe to use.
- Multiple payment options are accepted. For instance, buyers and sellers can use debit cards, credit cards, and other online payment methods.
On the contrary, there are two major disadvantages to using Rarible:
- The software is not compatible with Application Programming Interfaces (APIs) and IPFS storage.
- It doesn’t have a roadmap for its long-term goals.
- Sellers and buyers have to pay a 2.5% fee.
Rarible vs. OpenSea
OpenSea offers cheaper fees for item listings and transactions. Also, OpenSea only requires minting when a sale is about to occur. This means that you have to publicly list your artwork first.
Both OpenSea and Rarible require minting because tokens need to be minted to get access to a blockchain.
Nevertheless, the Rarible community is smaller compared to OpenSea. Thus, monitoring the progress of your artwork is easier. Furthermore, it the RARI token that can potentially get more value as time goes by. Having a unique token adds value to the Rarible ecosystem.
Rarible has been making waves since 2020 and is consistently proving its usefulness to digital creators. It supports many creators therefore it has a huge room for growth.
Additionally, the scarcity of the RARI token will also increase its value to investors. Rarible is a promising platform and can continue its positive growth if its developers continue to implement policies that are fair to both creators and buyers.