What are the top 5 NFT marketplaces and how do they work? | Flint
NFTs, one of the most hyped terms in 2021, are defined as non-fungible tokens which are crypto-assets built and stored over the blockchain. NFTs represent the ownership of a digital asset such as artwork, music, memes, collectibles, etc. To own an NFT, one has to go to the NFT marketplaces which are responsible for storing the NFT data and facilitating the trade between buyers and sellers.
NFT marketplaces are places where NFTs are stored, minted, and auctioned for sale. Simply put, these marketplaces are a mediator platform between those who want to buy an NFT and those who want to sell an NFT. If you want to buy clothing, etc you think of Amazon, if you want to buy stocks you think of a broker and similarly, if you want to buy NFTs you think of these marketplaces.
If you haven’t already, you should read about what are NFTs and where can we use them to understand them better.
How do NFT Marketplaces work?
- As said, NFT marketplaces are aggregator platforms being built and supported over the different blockchains. They connect buyers and sellers of an NFT.
- To buy or sell an NFT, a user has to sign up on the platform using a crypto wallet. During the process, you’ll need to enter your password and details to connect with the wallet.
- In order to buy an NFT, a user can go onto the search option or directly at the NFT page and can buy the same using the relevant cryptocurrencies. While buying, a user has the option to purchase it at the fixed price or buy it via the auction route.
- To sell an NFT is a more complex process. It is called ‘minting an NFT’ which means to upload the NFT on the blockchain. One can either mint the NFT onto the native blockchain or can do it via the sidechains such as Polygon and can trade it in the native cryptocurrency. Once the NFT is minted, it is approved by the marketplace and then gets listed on the platform. One has to pay a ‘gas fee’ in order to mint an NFT.
Top 5 NFT Marketplaces
OpenSea is currently one of the world’s largest NFT marketplace on the Ethereum blockchain which was started in 2017. OpenSea offers NFTs ranging from artwork, collectibles, games, PFPs, trading cards, etc. As a platform, it allows users to mint an NFT using layer two solutions as well. It accepts over 100+ tokens on its platform. It charges a 2.5% commission on every transaction with an additional gas fee on the Ethereum blockchain.
Just like OpenSea, Rarible is an NFT marketplace that offers all kinds of NFTs ranging from artwork, virtual cards, assets, PFPs, etc being built and supported on the Ethereum blockchain. Rarible has its own token currency which is used to buy and sell on the platform. For every transaction here, you have to pay a 2.5% commission to the platform followed by the gas fee on the network. It allows transactions in the fiat currency as well.
Binance is one of the world’s largest cryptocurrency exchange platforms. Recently, they have also launched their NFT marketplace offering NFTs in the form of collectibles, artwork, PFPs, etc. As one of the oldest in the space, Binance has its own chain to run on. The platform charges one of the lowest trading commissions which is close to 1% on every transaction.
DigitalEyes is the largest and the leading NFT marketplace on the Solana blockchain. Being the oldest marketplace, it offers NFTs across categories ranging from artwork, digital collectibles, PFPs, virtual digital cards, etc. It offers one of the largest collection pools of NFTs on the Solana blockchain. For every transaction on the chain, users have to pay a 2.5% commission fee to the platform.
SolSea is one of the largest and most popular NFT marketplaces also being built on the Solana blockchain. It allows both the creators and users to interact and facilitate transactions with ease. It’s one of the best platforms for creators to launch their NFTs with a lot of added tools. Although the platform has gained some traction, it charges an above-average transaction fee i.e 3% on every transaction.
As the adoption of NFTs is on the rise and the use cases are becoming clear, people are running to buy, sell and trade NFTs. NFTs, apart from being collectibles and a medium to prove ownership, also serve as the option of earning passive income. And hence, the volume of transactions at the marketplaces is increasing day by day. As these marketplaces would become mainstream, the heavy transaction fee would eventually come down and hence would make it accessible to all.
Originally published at https://www.flint.money.