OpenSea NFT marketplace has pointed out some existing rarity issues in the nonfungible token (NFT) space, sharing how it wishes to tackle them using the new OpenRarity protocol.
The world’s biggest NFT marketplace OpenSea has now tapped many partners to develop a rarity protocol dubbed OpenRarity. It shared the update in a recent Twitter announcement where it alleges that the protocol is in line with efforts to develop an open-source rarity rating system that would provide benefits to artists and consumers.
Based on expectations, nonetheless, the rarity protocol will launch on OpenSea sometime next week.
OpenSea To Address Rarity Issues In The NFT Marketplaces
The OpenRarity protocol needed OpenSea to team up with Icy Tools, Curio, and PROOF to address the challenge of rarity. Notably, the launch also aligns with OpenSea’s long term objective of developing transparent and less-bogus rarity calculations for nonfungible tokens.
This platform also highlighted some of the current rarity issues and explained how it hopes to resolve them with the OpenRarity protocol.
First, OpenSea said that current rarity calculations assign different values to collectibles using just their market values and creator level. But that is quite vague, to say the very least. These calculations do not, in any way, consider the element of scarcity – a majorly important factor.
Furthermore, rarity ranking algorithms of NFTs today are developed by closed-source code. Thus, there is always some form of divergence across a variety of publications platforms. Hence, making it almost impossible for NFT fans to determine the real source of their fancied collectibles.
In that context, OpenSea alleges that the rarity of NFTs now comes from a financial standpoint. The impact of this is that the developers and creators just have to pay rarity ranking tool developers for their work to rank significantly high.
Today, it means that low or medium-sized projects stand no opportunity to compete against the already established ones.
Why OpenRarity Might Be A Viable Solution
As repeated often by OpenSea, OpenRarity is expected to give a transparent, unbiased, and mathematically sound rarity ranking algorithm. The new rarity protocol will be smooth and free for all, instantly reducing the current divergence that exists among rarity protocols currently.
As expected, it will promote openness and provide small and medium-sized projects equal ranking opportunities as they pair against well-developed NFT projects.
Eventually, OpenSea confirms that the OpenRarity protocol will utilize some simple mathematical calculations to effect changes like new NFT mints as they happen. That is to say, in real-time.