How to Build an NFT Marketplace like Rarible?
What is Rarible — A Brief Introduction
If you are highly updated in the crypto space, it is quite possible that you have heard of the term Rarible and the impact it has created within a year of its launching. It is an NFT Marketplace that was started in the year 2020. Within a year of its launch, the marketplace has hit 29,000 unique buyers and both of about $29 million in trading volume.
The list of celebrities participating in Rarible included prominent names like Lindsay Lohan, Mark Cuban, and Tyra. It has become a favorite for artists and collectors, and it also brings in an element of security. In the oncoming lines, let us look at Rarible in good detail, its uses, and the way it works.
What are Non-Fungible Tokens?
To understand an NFT marketplace like Rarible, it is important to understand the concept of fungibility. Fungibility has been a term that has found growing prominence after the introduction of blockchain technology.
In essence, if an asset is considered defensible, it can easily be exchanged with another asset of similar value, and it can also be broken down into smaller assets. The best example of a fungible asset is the United States dollar or any other official currency for that matter. A note of $10 can be easily exchanged, for another $10 or 10 notes of a dollar each. The value does not at all change.
If we were to look at things from the opposite end, there are certain “unique“ items that cannot have any other representation. A good example of this would be collectibles. There might be a million pieces of art, but nothing can compare to the joy of processing the artwork of someone like Leonardo da Vinci.
An NFT can be considered something similar… But in the blockchain/digital world. Instead of owning such an asset, the information about the asset is stored on the blockchain. It brings numerous advantages like fending off counterfeit artwork, easy transfer of ownership, transparent verification of previous ownerships, and of course, establishing the authenticity of the artwork. This also gives room for people to just process it and actually not have it as a physical position, considering the kind of care it requires.
The NFT phenomenon can even be brought to digital art, music creations, gaming assets, and even virtual assets. Rarible is one such platform that facilitates the creation of NFT‘s enabling easy selling and transactions. It would not be an exaggeration to say that Rarible is almost like an Amazon for non-fungible tokens.
How Does an NFT Platform like Rarible Work?
Most NFT marketplaces work in the same way as Rarible. Users can create an account and sell their creations using unique tokens. This comes in handy for people Who create images, music, and videos and would like to sell them for long-term profit.
Rarible provides a platform for these creators. The NFT Marketplace can be placed somewhere in the region of IndieGoGo and Etsy. On one side, there is an openness of funding, and people can buy the creations of their favorite creators virtually. On the other hand, the Etsy quotient is brought about by the uniqueness of the products put on sale on the NFT platform.
The Funding
One of the biggest testimonials of the success of Rarible is the funding of about $1.75 million it raised from a few reputed names like ParaFi, 1kx, CoinFund, and CoinBase. While the funding in itself is great news, the fact that it has been backed by some of the biggest names in the crypto space shows that NFT marketplaces are here to stay and make a profit.
It is not surprising to see Rarible being funded. In the first year of founding, more than 1 million unique items were minted on Rarible. About 2.5 million Rarible tokens were distributed to creators and collectors.
Rarible has been slow and steady in unlocking features. Within six months of its founding, the sales volume of Rarible grew by 500%, reaching about $20,000 of sales in the month of June 2020. It also has a robust social presence with more than 10,000 followers on Twitter. It is not surprising to see that because of the presence of celebrities.
As you may have known, Rarible runs on the Ethereum blockchain, and it makes it easy for people to not only create tokens but even Conceptualize and build a Rarible like platform.
NFT Minting — Rarible’s Best Offering… With Examples
Since people or creators create their own tokens on the Rarible marketplace, it can be referred to as a painting platform. This comes in as a unique proposition from Rarible because other NFT market places take time and effort to curate artwork from artists before they place it on the platform; Rarible does not have any mediation or duration. Anybody can build their own token on Rarible.
This can be considered a massive welcome move as to what blogs did to the websites. With this opening of floodgates, even young talent and upcoming artists will be able to create their own tokens on Rarible. On the flip side, it also opens up opportunities for scammers to maliciously engage with the platform. Rarible has introduced a verification process to mitigate such risks.
How To Create Your Own Token on Rarible?
Creating a token on Rarible is probably one of the simplest engagements in the crypto world. All you need to do is go to their official website and create your crypto wallet. The wallet can be created with a single click. Based on what you sell, you can either choose to mint a single token or a token with multiple additions.
Once you have created the token, you can upload your image or video or your music that you would like to make available for people Who buy your tokens. You can specify a price, name your token, give a description, and also talk about pieces of information regarding royalties.
After you have given all these pieces of information, you just need to click on ‘create item‘. Your wallet will ask you to sign and pay for the gas fee, which is, in essence, the fee that you pay for using the resources of the blockchain. There might be instances where gas fees are high, but for making the process so easy, a lot of creators agree that it is worth it. To ensure that your guest fees remain minimum, you will have to choose the right moment to mint your NFT.
How Does Rarible Make Money?
No business is complete without a business model. There are different ways in which Rarible makes money. From the words of Alexei Falin, the CEO and co-founder of Rarible, fees for marketplace listing were introduced only in September 2020. Initially, listing an article on Rarible was available for free.
While the listing fee is relatively low, the number of listings on Rarible ensures that the platform gets enough profit. Rarible positions itself as a premium platform for crypto art and they look to expand into other categories in the crypto space. They also intend to launch themselves into the non-crypto world once they have scalability solutions in place.
The Regulations
Perhaps the biggest challenge not only for Rarible but for any other crypto business that revolutionizes something that has been existing for centuries together is the regulatory landscape. While ownership has moved into the digital space, the IP rights and royalty management is still embroiled in a humongous amount of paperwork and friction. This results in the system being highly non-liquid, bureaucratic, and lagging well behind how fast the digital world has been progressing.
With the legal system slowly catching up to accommodate the decentralized ledger technology, things could change soon, and the NFT is expected to take the lead in terms of representing digital content like digital art, game assets, TV shows, music, and collectibles. This also opens up a secondary market for such digital assets, Effectively addressing the issues faced with respect to liquidity.
The Future — Conclusion
What has been started as a spark by Rarible will soon build an easily accessible and distributed database on the blockchain that can allow anyone to find content that will be completely legal to use for commercial and non-commercial purposes, and the purchase can also be made instantly. This also removes geographic barriers as the blockchain is global by nature. This can also eliminate the instances of duplicates, making the entire system more reliable.
Rarible expects that the market will grow by 1000% in the near future and ideally, it will be permissionless, community-governed, and open. When the community starts growing, the interest increases. At this point in time, platforms like Rarible will create incentives for people to join and also help in raising awareness.
It is not a thing of wonder that a lot of futuristic crypto entrepreneurs have considered investing in building an NFT marketplace. There is quite some potential not only for growth but also for profit. This can help decentralize the creator environment which is largely governed by centralized social media platforms.
If you are one of those entrepreneurs who would like to build an NFT platform like Rarible, you can get in touch with the company that specializes in blockchain development in general and NFT development in specific. They will take care to understand a requirement and build you the perfect NFT marketplace like Rarible, so you can launch into the crypto space of profitability.
