Non-fungible tokens have created new market dynamics potent enough to induce mainstream adoption of cryptocurrency. For the first time, blockchain has been able to merge the real world and the digital world to great effect even as issuers continue to tokenize real-world assets. What this means is that the NFT market has been growing at breakneck speed, thanks to the explosiveness of NFT based products, including games and digital collectibles. At the heart of this budding economy are NFT marketplaces which provide all the tools required to be a part of the NFT movement. One of the notable options available to NFT users is Rarible. The NFT marketplace has opted for a decentralized framework, which puts users at the helm of affairs.
In this guide, we will take a look at the operations of Rarible, its features as well as its strengths and weaknesses.
What is Rarible?
Rarible is an NFT marketplace that was launched in 2020 by Alexei Falin and Alexander Salnikov. The goal was to develop an NFT ecosystem where users are given the liberty to contribute to the day-to-day running of the platform. In essence, Rarible is a decentralized protocol designed to facilitate NFT trades. In addition, users can create NFTs on Rarible. The good thing about this is that the process does not entail coding skills. As such, anyone with basic computing skills can mnt NFTs with Rarible.
In July of the same year it launched, Rarible became the first NFT-based protocol run by a decentralized autonomous organization (DAO). Note that a DAO is an organization collectively governed by its users. What this means is that Rarible’s users can contribute to the governance process of the platform. This is possible due to the launch of RARI, the platform’s governance token. With this token, users can create proposals or vote for the proposals that would be implemented.
Therefore, we can say that Rarible is a user-centric platform that utilizes the concept of decentralization in all its ramifications such that users do not only have full control over their assets but can also decide the fate of the protocol. Users earn RARI when they actively participate on the platform. Also, they have to stake the governance token for a selected period before they unlock the voting rights that come with it.
This system helps reduce the occurrence of incidence whereby an attacker can acquire enough tokens to instantly influence the DAO’s decision-making process. A total of 41,250 RARI is distributed every week. 50% of this reward goes to sellers and the other 50% goes to buyers.
It is also worth mentioning that Rarible is an Ethereum-based platform. In other words, it only supports NFTs and cryptocurrencies that exist on the Ethereum blockchain. Notably, Rarible focuses on digital art and virtual collectibles. As such, you will most likely find lots of options if you are looking to buy collectibles like profile pictures or pfp-based NFTs and artworks.
The User interface of Rarible
Rarible has a very impressive user interface. The decision to go with a default black background is commendable because it gives the whole website a professional look and makes the listed artworks even more appealing to the eyes. However, for those who are not a fan of dark-themed websites, there is an option to switch to an interface with a white background. Furthermore, there is a search bar at the top of the website where you can enter keywords like the name of the NFT you are looking to purchase. You can also enter the name of the collection or its creator to quickly find what you are searching for.
How to create NFTs on Rarible
Like most NFT marketplaces, users have to create an account before they can enjoy the services of Rarible. T
- To register an account, click the “sign in” button at the top right corner of the website. You will automatically be taken to a page where you can connect your existing NFT-compatible Ethereum wallet.
- Once you have connected your wallet, you can go ahead to personalize your account by adding an account name and uploading a profile picture.
- When this is done, you can start creating your NFTs. To do this, click the “Create” button at the top right corner of your screen and you will be redirected to a page where you will specify whether it is a single NFT or a collection of NFTs you want to create.
- Once you click your preferred option, you will be taken to another page. Here, you have to enter all the details about your NFT, upload the file, write a description, set a price and add an image or video as the preview.
- Furthermore, you need to specify whether you want the buyer to pay both the listing and gas fees, which amounts to 5%.
- Lastly, you can add a royalty configuration. Here, you can decide to claim up to 50% of the proceeds generated from the secondary sales of your NFT. Note that there are three ways you can sell this NFT. You can opt for a fixed price system, choose a timed auction or settle for an open bid option.
- Once you have filled all the necessary fields, you can click on the “Create Item” button to mint the NFT. If you had opted to pay the gas fees, you will have to pay the fee from your connected Web 3.0 wallet. Alternatively, you can avoid paying this fee by choosing to mint the NFT after the buyer has made payment. By doing so, the buyer will be the one to pay for the gas fee needed to mint the NFT on the Ethereum blockchain.
How to sell NFT on Rarible
- For those looking to sell an NFT on Rarible, go to your account connected to your wallet, where the NFT is stored.
- Select the NFT you want to sell by clicking the 3 dots next to the title of the NFT.
- Once you click these 3 dots, you will see a dropdown menu. Click the “Put On Sale” option in this menu to continue. You can set a fixed price if you prefer the instant sale option. Better still, you can opt for an auction option.
- After choosing the price you want, click on “Next” to list the NFT. Note that you will pay a 2.5% listing fee which will be deducted from the money paid by the buyer to acquire your NFT.
How to buy NFTs on Rarible
We assume that you already have an account and a connected wallet. If that is the case, you just need to select the NFT you wish to buy. Depending on the payment system at play, you may be required to pay a fixed amount to acquire the NFT or outbid other buyers to get the chance of purchasing the item. Once you satisfy the payment requirements and pay the appropriate gas fee, the NFT will be transferred to your wallet. You may have to pay an extra 2.5% purchasing fee.
What are the pros and cons of Rarible?
Pros of Rarible
Rarible is decentralized
There are a lot of positives that come with using a decentralized NFT marketplace. The first is that you are in complete control of your private keys. As such, you do not have to worry too much about losing your funds or NFTs to an attack on Rarible’s hot wallets. Another advantage is that there are no restrictions. Since Rarible is decentralized, it promotes an open economy where anyone can list their NFTs whenever they wish to.
It is easy to use
It is commendable that Rarible has ensured that its services are simple to use. You do not have to have coding experience before you can create an NFT on Rarible, nor do you have to undergo complex processes to purchase or sell NFTs on the marketplace.
It has a good customer support system
The website features a loaded FAQ section where you can find some vital information on how to use the features and enjoy the services on Rarible.
It is governed by a DAO
Remarkably, Rarible has adopted a decentralized governance system to give all its users a voice when it is time to make decisions regarding the future of the platform. In essence, it launched a governance token, which unlocks the voting rights necessary for creating and supporting development proposals.
Rarible committed to reducing occurrences of fraud
Understandably, decentralized NFT marketplaces have been plagued by cases of fraud where creators sell the NFT version of artworks and collectibles that they do not own. To mitigate this issue, Rarible now provides special privileges to users that go the extra step to verify their accounts. For one, it is only NFTs of users with verified accounts that enjoy extra visibility on the explore feeds and appear on search results.
It offers gas-free lazy minting
Creators can avoid the expenses that come with minting NFTs on the Ethereum blockchain. They can do this by opting for what the Rarible community calls “Lazy Minting.” With this, your NFT will only ever be minted on the blockchain at the moment the buyer pays for it. By doing so, the buyer will take up the responsibility of paying the gas fee.
Cons of Rarible
Rarible is a relatively new project
Recall that Rarible launched in 2020. Compared to established alternatives, like OpenSea that has been operating since 2017, Rarible has a long way to go to prove that it is a viable option. However, from what we have experienced so far, the platform seems to be doing enough to be in contention for the top spot in the NFT market.
It only supports the Ethereum blockchain
It is worth mentioning that Rarible exists on the Ethereum blockchain only. Therefore, it can only accept Ether and ERC-20 tokens for payments. Likewise, users are restricted to ERC721 NFTs. These restrictions may discourage creators and collectors that prefer to rely on a more versatile marketplace.