The introduction of non-fungible tokens (NFTs) has given creators more control when it comes to displaying and selling their work. The concept behind NFTs is that people can create, trade, and own distinguishable digital assets without engaging with the traditional gatekeepers of the art industry. Therefore, it is essential that these platforms provide an open forum for successful NFT transactions.
If you want to buy or sell NFTs, marketplaces like OpenSea and Rarible are great places to start. However, each has unique characteristics that will determine which platform will best suit your needs. This article evaluates what these markets have to offer and will help you find the one that works best for you.
OpenSea at a glance
OpenSea is a New York-based decentralized exchange that allows users to buy and sell non-fungible tokens. It is one of the most popular NFT marketplaces, and in 2020, the platform sold $21 million worth of digital assets.
OpenSea is the brainchild of Alex Atallah and Devin Finzer. After creating the CryptoKitties platform in 2017, the founders developed a new marketplace for digital art. They called their project OpenSea.
In addition to being the first NFT marketplace, OpenSea also has the largest number of crypto collectibles users. The platform uses the Wyvern Protocol, allowing members to exchange NFTs and other digital assets effortlessly.
OpenSea users can easily explore over 34 million digital assets across its various categories including videos, graphics, music and art. They can also classify different types of crypto art and collectibles, such as those from CryptoPunks, Decentraland, and Axie Infinity.
Initially, OpenSea only worked with the Ethereum blockchain. However, it has since become a cross-chain marketplace using Polygon and Klatyn.
rare at a glance
Rarible is a decentralized autonomous organization (DAO) that allows users to create and share digital art. It was released in early 2020 in Russia by Alexei Falin and Alexander Salnikov. The platform aims to foster a creative community that contributes to market growth and governance.
Rarible allows users to mint and index their digital assets through smart contracts. Creators can then set the royalties they would like to earn from future sales of their products.
Through the platform’s categories, potential buyers can browse various assets to find something that may interest them. Additionally, Rarible also shows the history of an asset, showing the previous owners and what they paid for the NFT. Rarible even provides digital asset data that developers can use to create new applications. As an NFT platform, Rarible has facilitated thousands of NFT transactions and has earned a reputation as a trustworthy marketplace.
OpenSea versus Rarible: audience
OpenSea is the world’s first NFT marketplace and has built a strong reputation and a large community of creators and traders. Its goal is to make it easier for people to buy and sell digital assets.
While it has a large database, Rarible focuses on making it easier for its community to have a say in the future of the company. To do this, its founders have created a governance token that allows users to vote on future updates.
Both Rarible and OpenSea work with the same smart contracts, which are believed to be the gold standard for NFT transactions. All data stored on the blockchain is non-fungible, making it easy to track ownership.
While OpenSea offers a marketplace that makes it easy for users to buy and sell digital assets, Rarible is more focused on creating a space where creators can have a say in how the platform is governed. The company gives them ownership not only of their art but also of the market itself. In other words, OpenSea focuses on the art while Rarible focuses on the artist.
OpenSea vs. Rarible: coins
While Rarible only accepts ETH as a payment method, OpenSea allows users to use DAI, ETH, and other Ethereum-based tokens to buy and sell NFTs. That means you can trade over 150 different cryptocurrencies on OpenSea. However, Rarible allows you to make purchases with your credit card, an option that OpenSea does not offer.
Rarible also has its own currency, RARI, which is earned through liquidity mining from the platform. However, you cannot buy or sell anything on the platform using this token. Its sole purpose is to allow users to vote on future changes in the market.
Unfortunately, there are some issues with the Rarible project that may affect its operations. One of them is wash trading, where users create multiple accounts that they then use to trade their own tokens. This has caused the value of the tokens to be compromised.
OpenSea versus Rarible: wallets
OpenSea supports MetaMask, a popular cryptocurrency wallet. It also works with other companies such as Bitski, Coinbase and Fortmatic.
Rarible also supports several wallet integrations, including Ethereum, Metamask, and MyEtherWallet.
Because both platforms integrate with many wallets, there is a good chance that your crypto wallet is compatible with either exchange.
OpenSea vs. Rarible: platform fees
OpenSea and Rarible have lower transaction fees than most other NFT marketplaces.
While OpenSea only charges the buyer a 2.5% fee, Rarible earns the same 2.5% from both the buyer and the seller. On the contrary, some exchanges, such as SuperRare, ask for commissions of up to 15%.
OpenSea vs. Rarible: coinage
OpenSea and Rarible have introduced deferred minting, allowing artists to sell their NFTs without creating smart contracts on the blockchain. Through this technique, these platforms have made it possible for people to mint NFTs without having to pay network fees.
It is essential to note that many blockchain transactions, including NFT minting, generate a network fee that goes towards validating the operation. Because Ethereum gas fees can be quite high, OpenSea and Rarible’s deferred minting features are very attractive to users as they avoid making these payments on the network.
OpenSea vs. Rarible: royalty fee
One of the most critical aspects of an NFT platform is the availability of a royalty program. This allows creators to earn passive income from NFTs sold on the secondary market. OpenSea offers a flat 10% royalty rate, while Rarible allows creators to determine this payment themselves. Users can set royalty rates up to 50% of the original cost if they wish.
OpenSea versus Rarible: security
Understandably, security is paramount when it comes to assets and payments. Because NFTs are traded online, they are vulnerable to attacks, fraud schemes, and data breaches. OpenSea and Rarible have had scandals centered on fraud and counterfeit products. There have also been cases where copyright laws have been violated. While both platforms have experienced security breaches, OpenSea appears to have been hit harder than Rarible. More recently, OpenSea had to deal with a smart contract issue that left NFTs exposed to the threat of theft.
Bottom line
Your choice of platform will be largely determined by your priority. For example, if you are more interested in having a lot of cryptocurrencies to trade, OpenSea is a great option. However, if it makes sense for you to pay for your purchases with a credit card, then Rarible will suit your needs better. This guide highlights areas where these platforms shine and where there is still work to be done. So, you are now better equipped to decide which NFT marketplace best suits your needs.
Have you used OpenSea or Rarible? What did you like about the platform? Let us know in the comments below.
