Coinbase, a cryptocurrency exchange, has announced plans to build a marketplace where users can mint, collect, and trade NFTs.
What is an NFT?
A non-fungible token is a one-of-a-kind, and non-transferable data unit kept on a digital ledger. NFTs can be used to represent easily replicable goods like images, movies, audio, and other sorts of digital assets as unique items, and blockchain technology can be used to provide verified and public evidence of ownership.
What will this marketplace do?
The company announced on Tuesday that it would begin accepting applications for Coinbase NFT, a peer-to-peer marketplace that will connect buyers with creators and each other. It’s designed to simplify minting NFTs, which is the process by which a piece of digital art becomes a part of the Ethereum blockchain and buying NFTs and browsing what’s available, a more seamless experience. The idea is to democratizedemocratize and make more accessible the relatively obscure realm of non-fungible tokens.
What does the company have to say?
“We will make it effortless for artists to maintain creative control through decentralizeddecentralized contracts and metadata transparency,” said the company. “The initial launch will support Ethereum-based standards with multi-chain support planned soon after. We’ll provide the best user experience, but we’ll never lock creators in.”
It will assist artists in reaching out to a more significant number of potential collectors and selling more artwork. James Zhang, the creator and CEO of Concept Art House in San Francisco, is hopeful about Coinbase’s ability to attract more artists to this new marketplace.
“The hardest thing in the world for an artist is to connect to their potential buyers,” he said. “In practice, artists have to sell their art for much less than it would be worth if they could easily reach their buyer universe. As we digitizedigitize art markets, we improve their efficiency with consequent benefits for the creators.”
“Coinbase is simply opening up its digital wallets and exchange to this new asset class,” Zhang said. “Eventually, all digital wallets will support NFTs just as they will all support cryptocurrencies.”
Coinbase also announced a partnership with UnitedMasters, a New York-based music distributor, to make it easier to pay musicians in cryptocurrency for their work. The move allows artists to pick how they would like to be paid – in part or in full, in US dollars or bitcoin.
“UnitedMasters believes this will further financially empower the creators behind the music and decentralizedecentralize the economics of the music business,” Coinbase said in a blog post.
Coinbase NFT, the company’s NFT marketplace, will contain “social features” and tap into the “creative economy,” which refers to those who generate money by uploading films and other content to the internet.
Both Binance and FTX have just opened their own NFT exchanges. However, the highest market share belongs to OpenSea, which controls 97 per cent of the NFT market.
Coinbase’s foray into the NFT industry could be a method for the company to diversify its revenue streams, given it is currently reliant on exchange fees.