OpenSea is marketplace for buying and selling non-fungible tokens (NFTs). Devin Finzer and Alex Atallah established the platform in 2017.
It is a typical crypto peer-to-peer (p2p) decentralized marketplace where crypto assets such as non-fungible tokens are traded. Apart from NFTs, crypto assets include gaming items and other collectibles backed by a blockchain. In essence, any type of digital content that can be bought and sold online can be minted and sold as an NFT on OpenSea.
OpenSea is built on the Ethereum blockchain offering the platform a number of benefits, including trustless trading via smart contracts. Notably, because of the Ethereum network, there is full transaction encryption. This adds an extra layer of security that ensures that both buyers and sellers are protected as much as possible against fraud. It also ensures that users can remain anonymous if they choose to do so.
What is an NFT?
An NFT, or non-fungible token, is a type of cryptocurrency token that represents a unique asset that cannot be interchangeable with other assets of the same type. They are often used to represent digital collectibles, art, or other items with unique value. Unlike Bitcoin or other fungible cryptocurrencies, each NFT is unique and cannot be interchanged with any other NFT. Common examples of NFTs include Bored Ape Yacht Club (BAYC), CryptoPunks, NBA Top Shot, and more.
What Are Some Items On OpenSea?
Almost 100 percent of collectibles on OpenSea are Ethereum-based NFTs. Although they’ve started allowing other blockchain-based NFTs to trade on the platform, more than 90 percent of digital assets on OpenSea are launched on Ethereum.
How OpenSea Makes Money
The platform makes money by charging a small fee on each transaction. This fee is typically a percentage of the total value of the transaction, and it goes to support the costs of running the marketplace and developing new features. OpenSea also offers premium features, such as the ability to create custom NFTs, which come with a higher price tag. In addition to transaction fees, OpenSea also generates revenue through partnerships and other business deals. For example, the company has partnerships with major crypto exchanges like Coinbase, which allows it to list popular digital assets on its platform.
Is OpenSea Only for Ethereum and ETH?
Initially, the assets traded on open sea were all Ethereum based. Presently, OpenSea permits trading collectibles and NFTs on the Solana blockchain, accepting USDC and DAI. In the near future, the platform is exploring on supporting fiat payment on the platform.
Why OpenSea is so popular?
OpenSea is so popular because it is one of the few places where people can buy, sell, and trade NFTs. There are a limited number of NFT marketplaces, and OpenSea is one of the largest and most well-known. Plus, the platform makes it easy to manage your NFTs, has a wide selection of NFTs with exciting features like portfolios and collections. The fact that creators can now mint NFTs for free on OpenSea is further cementing its place as a top NFT marketplace.