OpenSea and Rarible are two of the largest non-fungible token (NFT) marketplaces. The NFT market continues to grow, with users from all over the world buying and selling virtual items using their favorite cryptocurrencies.
Both NFT marketplaces have a lot to offer, but what similarities do they share, how do they differ, and which platform is better?
OpenSea is the world’s first and largest decentralized marketplace for collectible NFTs and cryptocurrencies. Founded in 2017, the platform quickly rose to fame for its ease of use, unique NFT listings, and high trading volume.
It currently has tens of thousands of active traders, with an estimated historical trading volume of $20 billion. Additionally, the platform is home to some of the world’s most prominent and in-demand NFT collections, including Crypto Punks, Bored Ape Yacht Club, and more.
OpenSea supports various categories of NFTs, including digital collectibles, virtual lands, art, sporting goods, music, domain names, and utility NFTs such as membership cards.
Rarible describes itself as “Web3’s first aggregate NFT marketplace.” It is a community-focused multi-channel marketplace for NFTs and digital collectibles.
Rarible users have a seamless peer-to-peer interface to the NFT marketplace. The platform is banking on decentralization, with its economy and governance governed by RARI, its native token.
Open sea vs. Rare: Governance
While both platforms run on the blockchain, their governance structure is quite different.
OpenSea does not operate under a decentralized governance model, as its core team, led by Devin Finzer and Alex Atallah, still make policy decisions for the platform. However, this has led to some questionable decisions being implemented with mixed reactions from the NFT community.
Rarible, on the other hand, offers decentralized governance through its native token, RARI. Active users of the platform can earn ARRI through trading activities. Additionally, ARRI holders are elevated to stakeholder status, where they can actively contribute to governance decisions, policy changes and the future of Rarible.
Open sea vs. Rare: payment options
OpenSea offers users the ability to pay by NFT with support for up to 150 cryptocurrencies, including Ethereum (ETH/WETH), SOL, AVAX, USDC, BNB and DAI.
Rare payments are limited to ETH, FLOW, XTZ or MATIC only, although the platform has started accepting credit card payments in an effort to appeal to mainstream users.
Open sea vs. Rare: Exchange fee
Users of both platforms have to pay a portion of the money they earn from selling NFTs as commission. This is in addition to the network fees on the associated blockchain.
OpenSea receives 2.5% of the sale price, while Rarible takes 1% each from the buyer and seller for each sale on their marketplace.
Royalties for NFT creators also differ. The OpenSea royalty is set at 10%. On the other hand, Rarible offers creators the option to receive up to 50% royalties.
Open sea vs. Rare: Currency without gas
Gasless Minting, also known as lazy minting, offers digital creators the ability to mint NFTs without paying any network fees. However, please note that all transactions on the blockchain incur network fees which are paid to the network validators responsible for providing the infrastructure for the activities on the blockchain.
Gasless minting allows the creator to automatically transfer responsibility for paying the minting fee to the purchaser of the NFT or digital collectible coin. Both OpenSea and Rarible have enabled gasless minting on their platforms.
Open sea vs. Rare: security
Security is one of the main topics of discussion when interacting with digital assets. Both platforms follow standard blockchain procedures for security, but that hasn’t stopped them from being exposed to copyright and fraud issues.
OpenSea and Rarible use the Ethereum ERC-721 and ERC-1155 standards for NFTs to verify ownership of digital assets to avoid copyright claims. However, due to their functioning as open marketplaces, it is difficult to 100% guarantee the authenticity and copyright claims associated with every NFT or digital collectible coin traded on their platforms.
OpenSea has seen multiple security incidents recently, the latest being a smart contract exploit that left users vulnerable to NFT theft.
Open sea vs. Rare: ease of use
Both platforms offer a beginner-friendly interface that makes it easy to navigate between NFTs and digital collectibles. OpenSea and Rarible have multi-chain integrations, so users can explore NFT ecosystems from multiple blockchains.
OpenSea and Rarible have the strength to simplify the delicate processes involved in the management and monetization of NFTs. You don’t need to know how to code before you can create NFTs or know the technical specifications to use their trading interfaces.
Both platforms are non-conservative. NFTs are not stored on either platform; rather, they act as a gateway to buy, sell and mint NFTs. NFTs are stored in the user’s wallet.
Open sea vs. Rare: Blockchains supported
OpenSea offers a wide range of cross-blockchain compatibility across multiple blockchains. Currently supported blockchains are Ethereum, Solana, Polygon, Avalanche, BNB, Klaytn, Arbitrum and Optimism.
Rarible, on the other hand, supports creators and collectors on the Ethereum, Flow, Tezos, Polygon, Solana, and Immutable X blockchains.
Open sea vs. Rare: advantages and disadvantages
OpenSea and Rarible have a number of similarities, but certain features set each platform apart.
The advantages of OpenSea
- The user interface of the platform is beginner friendly.
- OpenSea supports payment in up to 150 different cryptocurrencies.
- It currently supports eight blockchains.
- The platform hosts the largest and most diverse collection of NFT projects.
- Gasless coin minting is available.
- Available on mobile devices (iOS and Android)
The disadvantages of OpenSea
- The royalty is limited to 10%.
- No decentralized governance system.
- Known platform hacking and fraud issues.
The advantages of Rare
- It is a multi-chain platform that supports five blockchains.
- Rare allows payment by credit card.
- The platform has an established decentralized governance system powered by its native token ($RARI).
- Easy to use features.
- A flexible royalty for creators with up to 50%.
The disadvantages of Rare
- It supports payment in just five cryptocurrencies.
- Not available on mobile devices.
NFT markets offer more choices to users
Depending on your needs, the “best” market is a matter of personal choice. For example, digital creators may prefer Rarible to OpenSea due to higher royalties, although OpenSea has a larger market that can accelerate NFT sales.
In the end, it all boils down to what’s important to you in terms of features, payment options, transaction fees, and supported blockchains, as both platforms offer similar services. One thing is for sure, both platforms are driving mainstream adoption of NFTs and digital collectibles.