Opensea NFT: Understanding How NFTs Work on the Platform

NFTs (non-fungible tokens) and OpenSea are subjects of a lot of buzzes, but what do they actually mean? There are several NFT games out there the most popular of which is CryptoKitties, which crashed the Ethereum network, or Bored Ape Yacht Club, which has a floor price of near 100 ETH, which translates to thousands of dollars.

The blockchain is a transparent record of non-interchangeable tokens. In addition to digital assets, they can also be used to represent physical assets as tamper-proof representations of ownership. It is possible to tokenize anything, including art, music, real estate, and in-game assets. Artists who are seeking protection for their intellectual property have embraced digital assets as a solution.

An NFT marketplace is where you can browse, buy, sell or create your own NFT, and OpenSea is the largest. Approximately 88% of total NFT trading volume in 2021 was conducted on the NFT marketplace, according to DappRadar.NFT collections that stand out on OpenSea include Bored Ape Yacht Club, CryptoPunks, and Doodles. OpenSea and NFT marketplaces will be discussed in more detail.

What Is Opensea?

The Opensea NFT marketplace is the first and largest decentralized NFT marketplace built on the Ethereum blockchain and is currently the largest in the world. In addition to buying and selling NFTs, you can build your own collection of NFTs using it. OpenSea is as easy to use as it sounds, and anyone can use it.

Initial users of the marketplace included CryptoKitties, which was one of the first Ethereum blockchain decentralized applications (DApp). NFTs, such as art, domain names, game items, and music, can now be sold on the marketplace. NFTs worth thousands of dollars have been stolen from the platform several times. In spite of that, it remains the most reliable platform for minting and trading NFTs.

Using OpenSea requires an Ethereum wallet since it is based on the Ethereum blockchain. Many wallets are supported, including MetaMask, Coinbase, Trust Wallet, and MyEtherWallet. As an alternative to Ethereum, Polygon (MATIC) and Klaytn (KLAY) are supported, as well as other blockchains. The payment options include stablecoins as well as over 200 others. Cryptocurrency is the basis of every payment method.

Exactly how does OpenSea work?

When NFTs became mainstream, there was no specialized marketplace for buying, selling, and trading them. Until OpenSea, there had never been anything like it. Beginners often compare it to eBay when explaining its workings. In essence, OpenSea works like eBay, Etsy, or any other well-known buying/selling platform. Only here are digital items transacted – NFTs – instead of physical items. With OpenSea’s platform, fees can be set on your tokens, and auctions can be created to sell NFT art projects.

Smart contracts facilitate the transactions made on OpenSea’s platform, as the platform is noncustodial. As a result, fair trade can be assured. The transaction must be a win-win situation for both the buyer and seller – otherwise neither party transacts.

In spite of the fact that OpenSea is a P2P exchange, there is still a 2.5% fee for every successful transaction on the platform. The transaction fee on OpenSea is certainly lower than on most NFT marketplaces, some of which charge as much as 15%. During transactions on OpenSea, the Wyvern Protocol is used. To those who aren’t familiar with it, it’s a decentralized digital asset exchange protocol based on Ethereum.

Is there a bright future for OpenSea?

As of January 2022, OpenSea has raised $13.3 billion in Series C funding led by Paradigm and Coatue. Despite saying it doesn’t plan an IPO, hiring a seasoned CFO in 2021 points to the possibility. Formerly, Brian Roberts led the US$7 billion IPO of ride-sharing platform Lyft, as the company’s CFO.

OpenSea will always be competing with other NFT marketplaces as the leading player. An example of a successful vampire attack was LooksRare’s. OpenSea’s large market share, however, may help keep it a leader in the long term, even if similar tactics diminish its trading volume in the short term. The trading volume of OpenSea exceeded US$14 billion in 2021, a 646-fold increase. 56% of the total NFT transaction volume measured by OpenSea was US$25 billion in 2021. By 2025, Jefferies estimates that the NFT market will reach US$80 billion. It is likely that OpenSea will continue to lead the NFT marketplace for a long time to come due to its size advantage.

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