SuperRare: Everything to Know
By Beluga Research August 17, 2023
Summary
- SuperRare is a cryptocurrency platform that enables the creation, ownership, and trading of unique digital artworks as non-fungible tokens (NFTs)
- It is a leading NFT marketplace for digital art that gained traction during the NFT boom in 2020
- Artists can mint their digital artworks as NFTs and list them for sale on the platform, while collectors can browse and make offers to purchase
- SuperRare offers features like ownership recorded on the Ethereum blockchain, a royalty system for artists and social elements
Overview
SuperRare is a cryptocurrency platform that enables the creation, ownership and trading of unique digital artworks as non-fungible tokens (NFTs). SuperRare provides a platform where artists can showcase their unique digital artworks and connect with collectors from around the globe.
By leveraging blockchain technology, SuperRare ensures that each artwork is represented as a non-fungible token (NFT), making it one-of-a-kind and easily verifiable. These NFTs serve as digital certificates of authenticity, allowing artists to prove ownership and establish scarcity, which adds value to their creations.
A Brief History
SuperRare was founded in 2017 by Jonathan Perkins and John Crain. It emerged during the initial wave of NFT popularity and gained traction as a leading marketplace for digital art. The platform gained significant attention in 2020 when the NFT market experienced a surge in interest and sales. This increased visibility helped SuperRare attract both established and emerging artists, as well as collectors seeking unique digital artworks.
SuperRare: Everything to Know
SuperRare lets artists mint digital artworks as NFTs, which can then be listed for sale on the platform. Each artwork is accompanied by a detailed description, including information about the artist, the creation process, and any additional context. Collectors can browse through the available artworks, view them in high-resolution, and make offers to purchase.
One of the key features of SuperRare is the concept of "ownership." When a collector acquires an artwork, they gain complete ownership of the corresponding NFT. This ownership is recorded on the Ethereum blockchain, providing a transparent and immutable record of the transaction. Additionally, SuperRare incorporates a royalty system, ensuring that artists receive a percentage of the proceeds whenever their artwork is resold in the secondary market.
SuperRare has also introduced social elements to its platform. Users can follow their favorite artists, engage in discussions, and even collaborate on projects. This social aspect fosters a sense of community and allows artists to build a dedicated following. Furthermore, SuperRare has implemented a curation system where notable collectors and artists curate a selection of artworks, providing exposure to talented creators and helping users discover new and exciting pieces.
The platform's integration with Ethereum enables seamless and secure transactions. Users can purchase artworks using Ether (ETH), the native cryptocurrency of the Ethereum network. Additionally, SuperRare has its own governance token called RARE, which grants holders certain privileges within the platform, such as voting on proposals and participating in community governance.
Getting Started
To begin using SuperRare, artists and collectors need to set up an Ethereum wallet, such as MetaMask, which allows them to securely store, send and receive Ethereum-based assets. Once the wallet is set up, users can navigate to the SuperRare platform and connect their wallet to access the full functionality.
For artists, the process involves creating an account and submitting artwork for review. SuperRare maintains a curation process to ensure the quality and uniqueness of the artworks on the platform. Once an artwork is approved, it is minted as a non-fungible token (NFT) on the Ethereum blockchain, making it verifiably scarce and immutable. Artists can then list creations for sale on the SuperRare marketplace, setting the desired price and royalty percentage.
On the other hand, collectors can browse through the available artworks on SuperRare and acquire the pieces they find appealing. Each artwork on SuperRare is represented by an NFT, which serves as a digital certificate of ownership. Collectors can purchase these NFTs using ether (ETH), the native cryptocurrency of the Ethereum network. Once a collector acquires an artwork, they become the sole owner of the digital asset and can showcase it in their digital collection.
Unique Aspects
SuperRare introduces several unique aspects that set it apart from traditional art marketplaces. Firstly, the use of blockchain technology ensures provenance and authenticity. Each artwork on SuperRare is associated with a unique token, providing an indelible record of ownership and transaction history. This transparency and immutability enhance trust in the art market by mitigating issues like counterfeiting and fraud.
Secondly, SuperRare incorporates a novel concept called "social mining." Artists and collectors can earn reputation points by actively participating in the SuperRare community, such as creating or collecting artworks, engaging with other users, or contributing to the platform's development. These reputation points can be converted into voting power, enabling users to influence platform decisions and curation processes.
Furthermore, SuperRare embraces the concept of programmable royalties. When an artwork is sold, the artist receives a percentage of the sale as a royalty. This feature enables artists to earn ongoing revenue from creations, even after the initial sale. Additionally, the ability to customize royalties allows artists to support charitable causes or collaborate with other creators by sharing a portion of the proceeds.
Advantages
- Authenticity - SuperRare leverages blockchain technology to provide a transparent and immutable record of ownership for each artwork. This ensures the authenticity and provenance of the digital art, reducing the risk of counterfeiting.
- Ownership rights - By purchasing an artwork on SuperRare, collectors gain full ownership rights to the NFT. They can transfer, sell, or display the artwork as desired, without relying on intermediaries or third parties.
- Artist empowerment - SuperRare enables artists to directly connect with their audience and monetize their work without the need for traditional art galleries or intermediaries. This empowers artists to have more control over creations and financial success.
- Royalties - SuperRare incorporates smart contracts that automatically distribute royalties to artists whenever their artwork is resold on the platform. This feature ensures that artists can continue to benefit from the appreciation of their work even after the initial sale.
- Global accessibility - SuperRare operates on the Ethereum blockchain, which allows for global access to the marketplace. Artists and collectors from around the world can participate, broadening the reach and exposure of the artwork.
Disadvantages
- High transaction fees - As SuperRare operates on the Ethereum blockchain, users are subject to transaction fees known as gas fees. During periods of high network congestion, these fees can become quite expensive, making it less viable for artists with lower-priced artworks to participate.
- Environmental impact - The Ethereum blockchain, like many other cryptocurrencies, relies on a proof-of-work consensus mechanism, which requires significant computational power and energy consumption. This has raised concerns about the environmental impact of NFTs and their contribution to carbon emissions.
- Market volatility - The value of NFTs on SuperRare can be subject to market fluctuations. Artists and collectors may experience significant price volatility, which can impact the perceived value and investment potential of the artwork.
- Limited scalability - The Ethereum blockchain has faced scalability challenges, leading to congestion and higher transaction fees during peak periods. This can hinder the user experience and limit the number of artworks that can be listed and sold on SuperRare.
- Copyright infringement - While SuperRare strives to ensure the authenticity of artworks, there is still a risk of copyright infringement. It can be challenging to verify the originality of digital art, and unauthorized copies can be created and circulated.