Rarible: Everything to Know
By Beluga Research August 14, 2023
- Rarible is a cryptocurrency platform that allows users to create, buy, sell and trade unique digital assets, including art and collectibles
- Rarible is an open and decentralized NFT platform founded in 2020, attracting artists and collectors worldwide
- It operates on the Ethereum blockchain and utilizes a dual-token system consisting of RARI and a native governance token
- Rarible empowers creators by allowing them to mint NFTs, retain a larger portion of the value and set royalties for subsequent sales
Rarible is a cryptocurrency platform that allows users to create, buy, sell and trade unique digital assets, including art and collectibles. Rarible is a decentralized marketplace built on the Ethereum blockchain. Unlike traditional online marketplaces, Rarible focuses on NFTs, which are indivisible and unique digital assets that can represent a variety of items, including artwork, music, virtual real estate and even in-game items. By leveraging blockchain technology, Rarible ensures provable ownership and scarcity of these assets, granting creators and collectors a new level of control and value.
A Brief History
Rarible was founded in 2020 by Alexei Falin and Alexander Salnikov. The platform gained traction amidst the NFT boom, attracting artists, collectors and enthusiasts from around the world. Rarible's open and decentralized nature resonated with the ethos of the cryptocurrency community, fostering a sense of ownership and empowerment for users.
Rarible: Everything to Know
Rarible operates on the Ethereum blockchain, utilizing smart contracts to facilitate creation, buying and selling of NFTs. The platform employs a dual-token system consisting of RARI and Rarible's native governance token. "RARI" is an ERC-20 token that serves as a utility token within the Rarible ecosystem. It enables holders to participate in platform governance, vote on proposals and earn rewards. Meanwhile, the native governance token grants users a say in the platform's development and future direction.
To mint an NFT on Rarible, creators simply need to upload a digital asset and define the desired properties, such as royalties and unlockable content. Once minted, the NFT becomes part of the Ethereum blockchain and the creator can choose to sell it directly on Rarible or on other compatible marketplaces. Rarible also allows creators to set royalties, ensuring they receive a percentage of subsequent sales.
The marketplace aspect of Rarible enables users to buy and sell NFTs seamlessly. Buyers can discover a wide range of digital assets, filter and sort them based on various criteria and place bids or make direct purchases. Rarible's user-friendly interface and intuitive browsing experience make it accessible to both seasoned collectors and newcomers to the NFT space.
Rarible's decentralized nature means that it does not maintain control over the assets or transactions that occur on the platform. Instead, the blockchain handles the verification and execution of each transaction, ensuring transparency and immutability. This decentralized approach aligns with the core principles of blockchain technology, empowering creators and collectors by removing intermediaries and enabling peer-to-peer (P2P) interactions.
To get started with Rarible, a user must first acquire an Ethereum wallet. This wallet will serve as the user's digital identity and enable them to interact with the platform. Popular choices include MetaMask and Trust Wallet, both of which can be easily installed as browser extensions or mobile apps. Once the wallet has been set up, the user can connect it to Rarible and start exploring the marketplace.
Rarible stands out from other NFT platforms due to an emphasis on community governance and creator ownership. The platform employs a decentralized autonomous organization (DAO) model, which means that decisions regarding the platform's development and governance are made collectively by token holders. This democratic approach ensures that the community has a say in shaping the direction of Rarible.
Another notable aspect of Rarible is a focus on empowering creators. Unlike traditional art markets wherein intermediaries take a significant cut, Rarible allows creators to retain a larger portion of the value generated from digital assets. By leveraging blockchain technology, Rarible enables direct P2P transactions, eliminating the need for intermediaries and reducing associated fees.
Rarible also offers a unique feature called "minting," which allows users to create NFTs. Minting involves the process of tokenizing a digital asset and attaching it to a blockchain, thereby certifying authenticity and uniqueness. This feature enables artists, musicians and other creators to showcase and monetize work in a decentralized manner. Minting on Rarible is accessible to anyone with an Ethereum wallet, providing a level playing field for creators of all backgrounds.
In addition to minting, Rarible provides a marketplace for users to buy and sell NFTs. The platform supports a wide range of digital assets, including artwork, collectibles, domain names and virtual real estate. With a user-friendly interface and robust search functionality, Rarible makes it easy for collectors and enthusiasts to discover and acquire unique digital items. The marketplace also facilitates auctions and bidding, allowing for dynamic pricing and value discovery.
- Ownership and Authenticity - Rarible leverages blockchain technology to establish verifiable ownership and authenticity of digital assets. Each NFT created on Rarible is associated with a unique token ID, allowing collectors and buyers to prove ownership and verify the origin of the asset.
- Global Accessibility - As a decentralized marketplace, Rarible offers a global platform for artists and creators to showcase original work and reach a broader audience. It eliminates geographical barriers and enables anyone with an internet connection to participate in the NFT market, fostering inclusivity and diversity.
- Creative Freedom - Rarible empowers artists by providing them with the ability to create and monetize digital creations directly. They can upload artwork, music, videos or any other form of digital content as NFTs, allowing them to retain control over original work and explore new revenue streams without intermediaries.
- Royalties and Secondary Sales - One of the unique features of Rarible is the ability for creators to earn ongoing royalties from secondary sales. Whenever an NFT is resold on the platform, the original creator can receive a percentage of the sale price. This feature provides artists with a sustainable income stream and incentivizes the creation of high-quality and valuable NFTs.
- Interoperability and Composability - Rarible is built on the Ethereum blockchain, which means that NFTs created on Rarible can interact with other decentralized applications (dapps) and smart contracts within the Ethereum ecosystem. This interoperability allows for the creation of complex and customizable NFT-based experiences, such as gaming, virtual worlds and decentralized finance (DeFi) integrations.
- Environmental Impact - Like many other blockchain platforms, Rarible operates on the Ethereum network, which currently relies on a consensus mechanism called "proof-of-work" (PoW). PoW requires significant computational power and energy consumption, leading to environmental concerns due to the carbon footprint associated with mining and validating transactions.
- Scalability Challenges - As the popularity of NFTs and Rarible continues to grow, scalability becomes a significant challenge. The Ethereum network has experienced congestion and high transaction fees during peak periods, making it less accessible and affordable for smaller creators and buyers. However, ongoing developments, such as Ethereum 2.0's transition to "proof-of-stake" (PoS), aim to address these scalability issues.
- Market Volatility and Speculation - The NFT market, including Rarible, has seen rapid growth and high volatility. Prices of NFTs can fluctuate significantly, leading to potential financial risks for buyers and investors. Speculation and hype can drive prices to unsustainable levels, and there is a need for careful evaluation and understanding of the underlying value and utility of NFTs before participating in the market.
- Copyright and Intellectual Property Concerns - The open nature of Rarible and the NFT ecosystem can raise copyright and intellectual property concerns. It becomes crucial for creators to protect original work and ensure that associated rights are respected. Additionally, there have been instances of unauthorized reproductions and plagiarism related to NFTs, highlighting the need for robust mechanisms to address these issues.