Blockchain technology has given birth to many projects – starting from Bitcoin to Ethereum and the famous “meme coin” Dogecoin, which became an excellent crypto asset. While some people buy Dogecoin for fun, others do it as an investment.
But one thing became a hot trend over the last few years – NFTs. Digital art has been widely recognized among the masses, including celebrities Lionel Messi, Justin Bieber, and other famous individuals.
What is NFT?
A non-fungible token (NFT) is a non-interchangeable data piece stored on a blockchain, in the form of a digital ledger which can later be sold and traded. Typically, NFTs are associated with something that is unique and has some intrinsic value. An example of an NFT may be the ownership of a specific work of art or the title to a house.
With blockchain technology, where ownership is recorded on a tamper-proof distributed public ledger, non-fungible tokens (NFTs) gain value, as the history of their transactions cannot be changed. These tokens are also cryptographically unique from one another, adding to their allure. Non-fungible tokens gain value because of the security and immutability that the underlying blockchain platform provides.
The rising NFT marketplace need
NFT art has become quite popular these days. Non-fungible tokens exploded in 2020, and today’s market is teeming with websites that facilitate NFT transactions. These platforms are known as NFT marketplaces, and they allow users to mint, list, buy, and sell crypto arts and digital collectibles. While some NFT trading platforms cater to a specific niche, others embrace every type of NFT out there.
But which are the best marketplaces for this new type of business which has exploded recently?
OpenSea is the world’s largest NFT marketplace, in which users can easily mint, buy, and sell non-fungible tokens, among other things. These digital assets can be anything at all, including collectibles, virtual items, digital art, and more. In order to use the OpenSea platform for free, you have to create and set up your own profile using its infrastructure.
Users can mint and set up their seller profiles for free, but the company charges a 2.5% fee on every sale made in its marketplace. Digital artists can set up a 10% royalty fee.
Rarible is a community-owned NFT marketplace that allows users to buy and sell crypto collectibles from a variety of blockchain networks. With support for three different blockchains, Rarible gives its community the freedom to mint and trade NFTs in any Ethereum, Tezos, or Flow-based ecosystem. This multi-network support enables users to buy, sell, and trade collectibles from any of those three chains on Rarible.
Rarible shares the same commission rate as OpenSea (2.5%) but NFT creators might include up to 30% royalties on the platform.
Nifty Gateway is a marketplace for rare virtual tokens minted on the Ethereum network, which are reserved for the most discerning users. The platform, which is run by Gemini, a cryptocurrency exchange founded by the Winklevoss twins, requires artists to submit their work to a rigorous verification process before listing NFTs on the site. Artists that get accepted are charged 15% of any sales.
Solanart is a decentralized marketplace with a wide variety of NFTs for sale. The marketplace features several collections from popular NFT projects, including Degenerate Ape Academy and Solpunks. Each collection contains information about the project and an overview of the items available for purchase.
It charges a transaction fee of 3% for every NFT sale. The max royalty rate is 40%, though applying such a high percentage is not a very bright idea.
NBA Top Shot
NBA Top Shot is the #1 marketplace for buying and selling digital NBA moments. Users can collect, hold, or trade short videos of basketball highlights. Up until March 2021, more than $230 million has been spent on the platform, with some highlights selling for hundreds of thousands of dollars.
As non-fungible tokens’ adoption grows, so will the demand for a wide range of applications utilizing various NFTs. We expect to see a rise in NFT trading platforms, some that may even combine the currently separate functions of marketplaces and exchanges. This guide covers just some of what is available right now, but we hope to see many more as time goes on.
Thank you for reading.