The crypto universe is taking the world by storm. It’s getting harder to find someone who hasn’t heard of cryptocurrencies and NFTs, and interest in the investment possibilities and innovations of these technologies only grows. For those who wish to enter the world of NFTs, it is necessary to use an NFT platform, in which it is possible to trade tokens. How about we find out more about and which are the biggest NFT platforms?
First of all, it’s always good to refresh your memory about what NFTs are. An acronym for “non-fungible token”, they are representations of digital items through encrypted records on the blockchain network.
Since the network is protected and dispersed, depending on the computers of different users across the globe to validate operations, the items have the characteristic of not being able to be copied, in addition to guaranteeing the property of those who own them. This explains the term, as a token is a representation of something, while “non-fungible” means that it is not replaceable, i.e. it has a unique value.
Relying on these qualities, NFTs are used for the most diverse goods, such as pieces of visual art, music, game items, and sometimes even more mundane things like popular tweets. The possibilities are endless, and that is what attracts so much public attention, especially investors and collectors.
NFT platform: a place to trade
In a nutshell, NFT platforms are digital marketplaces in which the commodities are non-fungible tokens. Buying and selling operations are usually done with cryptocurrencies, although there are platforms that allow the direct exchange of items. Many of them use the auction method, with the user who offers the highest value in a given time taking the NFT.
Most platforms are also where NFTs are created, that is, where the blockchain token is made and associated with the item made available by its author. This process is known as minting, a direct reference to the production of physical coins.
NFT platforms do not necessarily need to present themselves as marketplaces. This is clear when looking at NFT games, where the game itself becomes the platform. One of the pioneering examples of this is Sky Mavis’ game Axie Infinity, which has its own market for trading the game’s creatures, represented by NFTs.
Furthermore, platforms using the same blockchain networks are compatible with each other. That is, users can trade items between platforms, not having to be limited to one. This is, of course, due to the decentralized nature of the blockchain. Axie Infinity itself, for example, has its tokens on the Ethereum network, one of the most popular. In this way, it is possible to trade them on the numerous platforms that also use the Ethereum network, such as Binance.
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What is the biggest NFT platform?
As we have seen, NFT platforms are necessary for anyone who wants to participate in this market. At this point, people usually wonder which is the biggest and best NFT platform to use. The answer is not so simple, as many platforms compete in this market, presenting characteristics that can be viewed positively or negatively according to what the user is looking for. So, let’s list some of the main ones:
Binance: Already known as one of the largest exchanges in the world, being the main one in Brazil, Binance launched its NFT platform in 2021, offering items common to most platforms: art, game items and collectibles, with more than 100,000 articles currently available. Its biggest advantage is its low fees, which make operations more affordable. It also has a user-friendly interface, similar to the one used on its exchange. Binance uses both the Ethereum network and the Binance Smart Chain, accepting over 150 cryptocurrencies, without needing to have a prior wallet.
OpenSea: The elder of NFT platforms as it was launched when this technology first emerged in 2017, OpenSea delivers all the expected goods with over 4 million NFTs available. In May 2022, OpenSea reached a record $2.7 billion in daily operations. This makes it clear that this is the biggest NFT platform, but in addition to the variety of offerings, it also offers ease of use. Accepting over 150 cryptocurrencies, you can easily create a free account and start looking for NFTs. Unfortunately, it has slightly higher fees, including a network maintenance fee. One of the coolest things about this platform is that it allows what is called “lazy minting”, in which the user can create an NFT free of charge, as it will only go through the minting process if it is sold. This is a great opportunity for artists who are starting out in this market.
Rarible: While not as big as OpenSea, Rarible still has a respectable amount of NFTs, with over 300,000 of the most varied items. However, where this platform stands out is in the partnerships, which include art listed by the American fast food chain Taco Bell, and an agreement with the artistic software giant Adobe, allowing files created in its programs to be more easily converted into NFTs, in addition to facilitating the protection and verification of token metadata. Rarible uses the Ethereum, Solana and Tezos networks, and accepts a variety of payment methods, including certain fiat currencies such as US dollars. Another difference is that whoever owns the platform’s tokens, called RARI, can vote on the platform’s decisions, as a partner. Like OpenSea, Rarible also supports lazy minting.
Nifty Gateway: Nifty has a different proposition than most other platforms. Rather than allowing anyone to market their NFTs to offer a huge range of options, their focus is on exclusivity. For this, Nifty selects the arts of renowned artists to be sold. This curation makes the works on the platform more valuable, which explains the sale of the collection “The Merge” by the artist PAK for US$ 91.8 billion in 2021, the highest value for a work by a living artist. Nifty also uses the Ethereum network, and in addition to crypto, it accepts credit and debit card payments. Fees are high, but in return, it is the platform that best commissions artists on secondary sales.
SuperRare: SuperRare has the same business model as Nifty Gateway, focusing on unique pieces. The difference is that here it is the community that takes care of curating the works. Fees are also lower, but this translates into lower revenue for authors at resellers. SuperRare also has its own token, RARE.
Mintable: Pursuing a similar strategy to OpenSea, Mintable also allows any user to create their own NFTs. Although not close to the size of OpenSea, it was known for having made celebrity tokens available, in addition to having auctioned famous works. One of its biggest differentiators is its quest for sustainability, stimulating a carbon-free crypto market.
Pros and cons of using NFT platforms
For laypersons, it may not make much sense to use NFTs. A person might question how a digital item could be unique, and how it would add so much value. Understanding the qualities of non-fungible tokens can be a way to understand all of this better. However, it is still good to know the problems too, so as not to be surprised when investing large amounts in this market.
One of the great attractions for artists is the proof of authors of the NFTs, something that is immutably registered on the network. This brings greater copyright protection, with artists having greater control over the distribution of their works. In addition, some platforms like Rarible offer a percentage of the resale value to the NFT author, which means that the creator will still receive when it is resold by the next owners.
On the other hand, there have already been several cases of users minting works found on the internet. This has been decreasing with greater supervision of platforms, seeking to ensure that there are no unduly plagiarized items, but it is still an issue that cannot be ignored.
One possibility that has not yet been explored is that of using NFTs as representations of physical goods. With this, it would be possible to negotiate physical works, cars and even real estate through the blockchain, facilitating transactions by avoiding the need for brokers, for example. Unfortunately, it is still difficult to popularize this use due to the lack of government regulation of blockchain technologies, which leaves such negotiations in a gray area of the law, discouraging many from carrying them out.
There is also the environmental issue, which is always closely linked to conversations about crypto. This is because the authentications necessary for the network to function require an enormous amount of energy, which in large part comes from polluting sources.
This issue has been worked on in recent years, with networks seeking clean and renewable sources, in addition to adopting new ways of functioning that reduce electrical consumption. One of the greatest examples of this is Ethereum, which changed from the Proof of Work to Proof of Stake method, which means that the network no longer depends on mining, which was largely responsible for high energy costs.
In conclusion, the evolution of the NFT market is very clear. With this, many people will want to enter this world, and it is imperative that they understand what they are doing, which includes choosing a good NFT platform to execute their transactions. Each platform brings its own characteristics, and finding the one that best fits what you’re looking for is the best way to proceed.
Translation by Laura Bonci
