DigiCol versus Rarible — Comparing Next-Generation NFT Marketplaces
DigiCol is transforming the way that cryptocurrency enthusiasts interact with NFTs. But it is not the only technology which is providing a platform for more seamless creation and trading of NFTs.
Rarible is an NFT platform which was launched early in 2020 to facilitate buying, selling, and minting of NFTs without any coding skills. The platform observed a significant spike in NFT trading volumes and mints since September.
While DigiCol and Rarible have some similar features, there are also some important differences. We detail how the tokens of both platforms play an essential role in spurring NFT creation and trading. We also highlight the distinct characteristics which the DigiCol platform and token hold over alternatives.
Governance Token Mechanics — RARI Versus DGCL
Both the Rarible token — RARI — and the DigiCol token — DGCL — will play important governance roles in how the respective platforms evolve. RARI has already been effectively used to implement governance changes by holders voting on development proposals. Rarible has a forum to facilitate discussion among holders ahead of upgrades.
As the DigiCol platform evolves, DGCL will similarly be used to vote on governance changes. DGCL owners are the active participants in the DigiCol platform and their holdings will allow them to vote on how the infrastructure evolves.
Seamless Creation and Trading
DigiCol and Rarible’s raison d’être is to facilitate seamless NFT creation and trading. Both platforms remove the technical barriers to creating NFTs with DigiCol enabling one-click NFT creation.
NFTs spiked in popularity in 2017 but the infrastructure for creating and trading these tokens remained rudimentary. Nonetheless, NFTs like rare crypto kitties were still purchased for agreements of over $100,000. Many potential NFT users and traders were deterred when they were faced with technical barriers.
Both DigiCol and Rarible are creating a next-generation infrastructure for NFTs. The previous wave of interest in NFTs will be vastly outsized as more sophisticated platforms make NFTs accessible to the wider market.
The DGCL and RARI tokens are an integral part of these platforms. They incentivize participation in the ecosystem by rewarding users for creating and trading NFTs.
In the DigiCol platform, NFT creators are rewarded every time their token changes ownership. NFT holders can also be rewarded for showcasing their portfolio.
Rarible users are rewarded through a weekly airdrop which gives equal amounts of RARI tokens to both buyers and sellers. While this mechanism does have the downside of inflating supply, it has been effective for Rarible in streamlining adoption.
Distinct DGCL Use Cases
DGCL tokens also have several distinct use cases which make it unique from any other NFT platform. With DGCL tokens, it becomes possible to have fractional ownership in NFT assets.
The most valuable assets in any investment niche are often unavailable to the majority as they require high levels of wealth to purchase. This phenomenon was also accurate in the past NFT hype with some assets selling for over $100,000.
DGCL tokens enable holders to acquire fractional ownership in an NFT. This removes the barriers to entry for acquiring some of the most valuable NFTs.
DigiCol also incorporates DeFi functionality in its platform. Those that own NFTs on the DigiCol platform utilizes the tokens as collateral to borrow assets like Ethereum and USDT.
DigiCol will operate a liquidity pool to facilitate this DeFi functionality. Those that provide liquidity to the pool will also be rewarded.
Building NFT Infrastructure for the Next Wave
NFT interest has undoubtedly been resurfacing. Search traffic volume for the term “NFT” reached record highs while trading and minting volumes on existing platforms have been spiking. The DGCL and RARI tokens are both designed to reward NFT users for driving such activity.
However, DigiCol is also designing a platform which is distinct from alternatives. It will not only facilitate seamless NFT creation and trading but will also provide users with diverse DeFi functionality. This DeFi functionality will empower users to access liquidity by collateralizing their NFTs or to be rewarded for providing liquidity.