"NFT Treasure House" for whatever you want! What exactly is OpenSea, the world's largest NFT market? read a text

Non-Fungible Tokens (NFTs) are taking over the internet.

From athletes to businesses, we are seeing an increasing interest in NFTs. Last week, Visa purchased a digital avatar — CryptoPunk #7610 — for $150,000, making it the first major payment platform to enter the NFT space.

So, what are NFTs? They are records of ownership of digital files on the blockchain.

NFTs are called non-fungible tokens because each digital asset is unique. One NFT cannot be interchanged with another, even if they have the same value. The difference between NFTs and Bitcoin is that all Bitcoins are the same - Bitcoins are fungible.

In this blog post, we will explore OpenSea, the most popular NFT marketplace, and its relationship to Ethereum.

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What is OpenSea?

Founded in 2017 as a private company, OpenSea is currently the largest NFT marketplace, primarily facilitating peer-to-peer transactions of NFTs and crypto collectibles. It is essentially the eBay or Amazon of NFTs.

The platform allows anyone to buy, sell and mint NFTs through over 200 payment methods. Items include Art, Domain, Video, Games and Music. Currently, OpenSea has over 30 million NFTs spanning 901,000 collections.

OpenSea also allows developers to power their marketplace directly on the platform. They have access to the full range of OpenSea features, from setting up auction methods to creating bundles.

OpenSea is currently pioneering a royalty model that gives creators the option to earn royalties each time they resell an NFT. This concept enables creators to profit every time an item changes hands on the secondary market, and has the potential to revolutionize payment models for creators and provide more protection for intellectual property.

How does OpenSea work?

OpenSea is a non-custodial marketplace, which means it does not store any digital assets. Instead, users store assets in their own crypto wallet, the same location where they store their cryptocurrency private keys. Every time the ownership of an item is changed, the ownership record is transferred from the seller to the buyer. In the process, OpenSea charges a 2.5% fee.

In addition to the 2.5% operating fee and buy/sell price, users also incur gas fees during the transaction (think of it as gas money for a truck to go to another location). These gas fees are paid to the underlying protocol, Ethereum, for maintaining the network. These include setting up an account, accepting offers, and canceling offers.

Other NFT marketplaces

In addition to the 2.5% operating fee and buy/sell price, users incur gas fees during the transaction process. These gas fees are paid to the underlying protocol, Ethereum, for maintaining the network. These include building other major decentralized marketplaces, including Rarible.

The main difference between OpenSea and Rarible is the way they charge their fees. On OpenSea, users can list any file, but OpenSea waits for the file to be sold to generate an NFT. That way, users don't need to pay minting fees if it doesn't sell. However, Rarible is minted immediately, so even if the NFT is not sold, the user must pay the fee. This difference has caused most new and existing users to turn to OpenSea.

While not in direct competition, there are other platforms that only sell NFTs. Autograph.io and NBA TopShot are two of the biggest examples. They don't allow users to list their NFTs, but everyone sells NFTs to sports fans who want to collect them.

The future of OpenSea

In April 2021, OpenSea partnered with Polygon and IoTeX to enable OpenSea's cross-chain support. Now, in addition to Ethereum, NFTs can be made on the Polygon protocol, and they can be transferred from one blockchain to another. Users also do not have to pay gas fees for NFTs made on Polygon. OpenSea is working to make the platform more accessible to a wider audience, especially for those who haven't worked in the digital space.

In late July, OpenSea raised $100 million from venture capital firm A16z. After the financing, OpenSea expressed its desire to become a value transfer machine, not an information transfer machine, for true ownership and complete freedom of trade.

OpenSea is not without controversy. Recently, it was revealed that an OpenSea executive used insider information to buy NFTs for profit before OpenSea went public. OpenSea has no rules to prevent such conduct, nor do regulations require such rules. However, such events could accelerate actions by lawmakers or regulators, which could affect NFTs or the market and the value of Ethereum. The executive resigned, and OpenSea said it had implemented new rules in response.

in conclusion

If last summer was the summer of DeFi, this summer is the summer of NFTs.

OpenSea became the most gas consuming dApp on Ethereum. It has consistently broken daily volume records since the end of July. It now generates $1.54 billion in 30-day volume, a fivefold increase from the previous month.

With Visa's acquisition of CryptoPunk, a new wave of participation has arrived. Traditional auction houses such as Christie's have also started to hold NFT sales events.

While many question the objective value of NFTs, the trend toward digitization and tokenization of rare collectibles persists. For a number of reasons—including us humans wanting what others want—the value of NFTs is driven by this need.

As NFTs grow in popularity, they represent one of the best examples of Ethereum's value and potential. However, these markets may be subject to regulation or regulatory scrutiny in the future, which will have the opportunity to affect this value.

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