A Review of Rarible: Buying and Selling NFTs in Rarible
If you’re into NFTs, it might be worth your while to read this review of Rarible, a community-owned marketplace for NFTs.
You surely have come across NFTs with the accelerated digitalization of the world due to the onset of the Covid-19 pandemic.
It’s quite unlikely that you haven’t heard of some digital currencies like Bitcoin, but you might not be as familiar with the so-called NFTs.
NFT is an acronym for a non-fungible token, which you can use to buy digital collectibles, music, artwork, and in-game tokens.
In short, NFTs represent a unique kind of cryptocurrency, and they’re hard to find on standard exchange markets.
Thus, traders and crypto investors often overlook them, which is unfortunate as the NFT market is quite vibrant and fast-growing.
Given the accessibility and ease of purchasing, it’s no wonder that the crypto community leaders argue that digital artwork tied to NFT will soon surpass the market for physical artwork.
If you’re curious about the NFT marketplaces, in this article, we’ll introduce you to Rarible,.
It’s one of the fastest-growing platforms for creating and selling digital collectibles.
Understanding Non-Fungible Tokens
Before you sign up on a platform such as Rarible, you should have a thorough understanding of non-fungible tokens and what makes them so unique.
As we have mentioned earlier, everyone is probably quite familiar with Bitcoin, known as a popular cryptocurrency.
Unlike NFTs, Bitcoin is one type of fungible token, which means that it’s divisible.
A fungible token means that you can exchange bitcoins for one another.
For example, you can send or receive one bitcoin, and you’ll still end up with the same amount of bitcoins.
To put it simply, while the bitcoin value can and does change, bitcoins are still mutually interchangeable.
As their name itself suggests, non-fungible tokens are different from fungible tokens.
As we have pointed out, fungible tokens are divisible.
However, their counterparts, non-fungible tokens, aren’t divisible.
You could perhaps explain that by saying that different non-fungible tokens have intrinsically different values.
To exemplify, you can send one non-fungible token and receive another, and the two will be completely different.
This uniqueness of non-fungible tokens stems from the fact that they contain additional pieces of information in their smart contract.
Because of this unique characteristic of non-fungible tokens, you could:
- link them to particular digital assets, extensive metadata
- secure file links
Another great thing about non-fungible tokens is that you can use them to prove your product’s digital ownership.
As our world is gradually becoming more digital, all these are crucial aspects for its further successful development.
Lastly, as we have mentioned earlier, non-fungible tokens are hard to find on standard exchange platforms.
But there are other digital marketplace platforms where you can easily find non-fungible tokens, and Rarible is one of those platforms.
If you want to dive deeper into the world of non-fungible tokens, you can learn more about them here.
What is Rarible?
We have explained that Rarible is a digital marketplace, NFT platform.
It places a particular focus on art assets and collectibles.
Alex Salnikov and Alexei Falin founded this platform back in early 2020, and it has only grown exponentially since then.
As we have mentioned, Rarible is a marketplace NFT platform at its core, but there’s much more to it than that.
One of the most overriding aspects of this platform is that it allows its users to create content.
This process is commonly known as “minting.”
It’s significant for content creators as it allows them to create and sell their work as non-fungible tokens.
If you’re a creator, you can opt to show other users only a snippet of your art.
Then, give them full access once they’ve purchased your non-fungible tokens.
Rarible’s vision of the future is particularly interesting for creators and investors alike.
Namely, Rarible strives to become an autonomous platform, and this implies that it wants to run on a community governance model.
It then comes as no surprise that Rarible is now slowly turning into a decentralized autonomous organization or DAO.
At its core, this means that the users will be the ones to do all the decision-making on the platform.
This is possible through Rarible’s RARI governance token.
Although RARI is Rarible’s native governance token, you can’t purchase it directly from Rarible.
Instead, you can obtain the native tokens by actively participating in the marketplace.
Through a process called Marketplace liquidity mining, both sellers and buyers can get RARI tokens every week on Sundays.
The distribution of tokens is even, which means that 50% of the tokens go to sellers, and the other 50% of the tokens go to buyers.
If you wish to learn more about RARI, you can do so here.
Let’s Analyze Rarible
As we’ve stated earlier, Rarible is an NFT marketplace platform that encourages active interaction between sellers and buyers.
At this point, it might be useful to consider some advantages and drawbacks of this fast-growing platform.
Firstly, Rarible is also an open-source marketplace.
People without a technical background can use it, which turns it into an inclusive community for everyone interested in NFTs.
Secondly, Rarible is on its way to becoming a decentralized autonomous organization.
This means that the Rarible community will take an active role in decision-making processes.
Thirdly, the merger of Rarible and the DeFi ecosystems is another advantage.
DeFi ecosystem stands for decentralized finance ecosystem.
It’s a kind of financial ecosystem that exists digitally on a shared infrastructure.
A few different categories make up a DeFi ecosystem.
- Assets tokenization
- Compliance and identity
- Exchanges and liquidity
- Prediction markets
- Assets management
The connection between Rarible and Yearn Finance’s yInsure is crucial.
It issues insurance in the form of tokens, which you can then use on DeFi activities in the Rarible marketplace.
The connection with the DeFi ecosystem makes Rarible something to keep an eye out for if you’re an investor.
Lastly, another great advantage of Rarible is a relatively simple and intuitive user interface.
The Rarible platform is extremely easy to use.
For all its advantages, this platform of the future does have a drawback.
Namely, although it might seem that Rarible has a future all mapped out, the truth is that it appears that a clear direction is somewhat lacking from a user standpoint.
It’s clear that Rarible has a grand vision for future improvements.
However, there’s no clear timeline for any new launches or features, which can be a bit frustrating for some users.
After analyzing Rarible in-depth, it’s only fair that we include an overview of risks involved in using such a platform.
As you’ve probably gathered from our previous paragraphs, non-fungible tokens and Rarible have become buzzwords in today’s world.
While there seems to be great enthusiasm around them, they can prove to be nothing more than just a fleeting technological fad.
Naturally, enthusiasts praise the money-making possibilities in the NFT world, claiming that they’re endless in the NFT world.
Moreover, they argue that it’s quite unlikely that the interest will die down,.
This is because the non-fungible tokens seem to penetrate other aspects of human activity beyond digital artwork.
After all, the element of scarcity is what drives up the value of non-fungible tokens.
However, should non-fungible tokens ever lose their appeal, those who have spent a substantial amount of money on them could face immense financial losses.
Another thing to be cautious of is the sellers you decide to buy the artwork.
Many people can pose as famous artists only to get buyers to spend incredibly large sums of money on artwork that isn’t even real.
Lastly, the effect of non-fungible tokens on our environment isn’t negligible.
Operating the underlying blockchain system of non-fungible tokens requires an immense amount of computing power.
This is why NFTs are somewhat controversial.
Some people estimate that one crypto transaction uses up more power than an average U.S. household in a day.
Given our environment’s current state, the environmental impact is something you should seriously consider before making a crypto transaction.
Suppose you’re still interested in going after non-fungible tokens after reading extensively about the risks involved.
In that case, we’ll introduce you to an easy step-by-step process of using an NFT platform, Rarible, in the next paragraph.
How to Use Rarible
Now that we covered major aspects of Rarible, let us look at how you can take advantage of it and make some money.
Platforms like Rarible are quite user-friendly and accessible, so it’s not difficult to set up an account or go about selling your artwork.
There are only a couple of easy steps you need to follow, and we have summarized them for you in this paragraph.
Firstly, to make money off Rarible, you have to be an artist of some sort, and you need to market yourself properly.
Secondly, you need to set up a special wallet for your cryptocurrency.
Thirdly, you need to have some money in your wallet because blockchain transactions do cost some money.
With so many different platforms to choose from, your next step is to pick one marketplace platform that fits all your needs.
If you want to use Rarible, you can easily set up your account by connecting it to your wallet.
After making your account, you can enter the marketplace, and there you can upload your artwork by clicking the “create” button.
The process of uploading your artwork has a couple of steps that are easy to follow.
Firstly, you need to choose whether you want to upload a single artwork or a whole collection.
Then, you’ll need to supply some additional information, such as price, description, and so on.
Lastly, to sell your item on Rarible, you’ll need to pay transaction fees or “gas fees.”
You should also keep in mind that transaction fees can get somewhat high.
They’re set depending on the current value of Ethereum and the processing time.
By the way, Ethereum is a community-ran platform that powers the cryptocurrency ether and many decentralized applications)
You can get more detailed information by clicking on this article here.
Follow the Leaders
If you decide to jump on the bandwagon and take part in the NFT frenzy, you’ll be joining a large group of celebrities and brands that understand the value of non-fungible tokens.
For example, Taco Bell recently sold their gifs and images on Rarible.
They sold out rather quickly, and all of the proceeds went to the Live Más Scholarship.
The value of non-fungible tokens is obvious to other brands and celebrities too.
Youtuber Logan Paul, actress Lindsey Lohan, musician Post Malone, Fortnite, Nike, and NBA have all decided to test their luck with this cryptocurrency.
As non-fungible tokens are quite lucrative, several celebrities decided to mint these tokens and, in this way, gather money for charity.
Of course, with the ever-growing amount of attention, more celebrities and brands will decide to jump in and start experimenting with non-fungible tokens.
Given their popularity and impact, non-fungible tokens will surely have a lasting impact on all kinds of business models.
As they’re integral to the further development of digital platforms and digital ownership, non-fungible tokens will greatly impact digital media creators.
Soon, we might see the rise of non-fungible tokens as sought-after digital items.
Whether you think of them as another trend or the future of digital ownership, non-fungible tokens have a large impact on our ever-growing digital world.
In fact, because of their ties to digital artwork, non-fungible tokens might have such a crucial impact on how we perceive and consume art.
Because of this, it’s important to keep the NFT community inclusive and easily accessible to all people, including those with little to no technical background.
Open-source and user-friendly platforms, such as Rarible, act as leaders promoting non-fungible tokens and inclusiveness.
However, before diving into the lucrative world of non-fungible tokens, take the time to learn more about them .
Know how they drive forward our understanding of ownership.
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