If you’re still scratching your head over the recent interest in non-fungible tokens (NFTs) and platforms like OpenSea, you’re not alone. NFTs are a growing digital trend that has just recently become popular.
OpenSea’s platform was the first and is still a leading NFT marketplace because it focuses solely on these digital tokens. Everything that you need to learn about OpenSea will be covered in this article.
What Is OpenSea?
OpenSea is among the most prominent marketplaces where non-fungible tokens can be bought and sold (NFTs). NFTs are different digital assets that exist in a wide range of formats. They include various visual and in-game assets, such as avatars, metaverse territory, community access passes, trade cards, music, and domain names.
Alex Atallah and Devin Finzer, two software developers, developed OpenSea in 2017. Digital artists and network operators can utilize the network to mint NFTs, establish customized markets and NFT portfolios, determine fees on their currencies, and host token auctions.
Strengths of OpenSea
OpenSea is user-friendly for beginner who are just getting started with NFTs. The increasing prevalence of NFTs and blockchain technology have made formerly easy tasks, such as calculating gas prices, significantly more complex. Some gas-free minting options and NFT project data are made available through OpenSea.
Over a dozen other wallets, including MetaMask and Coinbase, are supported on the OpenSea website. The bulk of the cryptocurrency community can use the platform because it supports converting a wide range of cryptocurrencies for ETH, the network’s native currency.
How OpenSea works
The OpenSea Market is a non-restrictive venue, meaning no large entity controls the platform’s transactions. Instead, smart identity contracts that ensure fair trade facilitate transactions. On OpenSea, transactions are either completed in full or not. This is referred to as an atomic transaction.
What are NFTs?
Understanding the meaning of NFTs makes it simpler to know how OpenSea works.
To remark that something is fungible is a creative way of suggesting that it can be replaced. For instance, dollar bills are fungible; if two people exchange $30 bills, nothing changes. Both individuals own the same amount of wealth. Therefore, a non-fungible commodity is distinct and may typically be exchanged for other assets but cannot be replicated.
The true innovation of NFTs is that they enable the monetization of digital goods such as artwork and event passes. This provides artists, businesses, and communities with new ways to monetize digital works and resources. Because immutable records are stored on the blockchain, the ownership chain can always be traced back to its original.
The unique nature of web3 and crypto has allowed makers to bypass influential middlemen and sell straight to collectors. This is the basis of the NFT Marketplace on the OpenSea.
Pros and Cons of OpenSea
1. OpenSea Now Provides a Gas-Free Market Opportunity
The prospect of imposing high gas prices is a possible disadvantage of utilizing the Ethereum blockchain or acquiring Ethereum NFTs. This issue forced the operators of OpenSea to implement an alternative trading option on the Polygon blockchain. This enables creators to mint NFTs and conducts commerce on the OpenSea platform without paying these expensive gas fees.
Recently, OpenSea also announced its relocation to Seaport. Users can expect a 35% decrease in gas prices and the elimination of new account setup fees. This will result in lower transaction costs for network users.
2. Creators Can opt for Royalties
OpenSea’s blockchain-based marketplace offers a game-changing advantage by enabling artists to get rewards for their unique NFT ideas. In addition to earning once from a direct purchase or auction of original work, they can also determine a royalty share for any future money generated by the NFT.
This functionality is enabled by the anonymity of NFTs and the technology of OpenSea, which tracks the wholesale history of any digital item. It benefits artists and other digital inventors, allowing them to reap revenues from their work that might otherwise elude them in the digital world.
3. Flexibility With Many Cryptocurrencies and Wallets
More than a dozen different wallets, including the ones offered by industry leaders MetaMask and Coinbase, are supported on the OpenSea website. Most cryptocurrency communities will have access to the site because of its ability to convert hundreds of different cryptocurrencies into Ethereum, the network’s internal currency.
1. Ethereum Blockchain Charges
Due to the site’s early reliance on NFTs built on the Ethereum blockchain, users experienced high fees during peak traffic. It has resolved this issue by implementing cross-chain compatibility via Polygon. However, the original network and Ethereum NFTs have yet to be eliminated. With its second blockchain implementation, Ethereum addresses cost and energy-saving concerns.
2. Performance Issues
Despite its popularity, great features, and usability, OpenSea has some performance difficulties. The OpenSea status tracker suggests that both the website and API experience degraded performance. Additionally, the platform includes the following:
- Experienced an interruption in the network operator.
- Longstanding database problems.
- Excessive API Issues.
The company has begun issuing a monthly site dependability report to address performance problems. It summarizes complaints from the preceding period and describes the platform’s corrective measures.
Attacks and Misuse Problems
Cyberattacks and improper use have cost the website and its customers money. In January 2022, a malicious user stole 332 ETH worth around $800,000 from OpenSea’s customers. The company compensated those damaged and trained all clients on reducing their vulnerability but ultimately claimed that this type of danger was inevitable in any blockchain-based marketplace.
Services Provided by OpenSea as of 2023
OpenSea allows us a multitude of unique activities. The most prevalent activities are trading, selling, and purchasing various NFTs. However, you may also use the site to obtain extraordinary market insights and learn about new ideas.
Easily Create NFTs and Set Up an NFT Collection
OpenSea enables users with no prior experience to design their own NFTs. To getstarted, you must assemble an NFT collection. Then, you can begin uploading NFTs in acceptable forms.
Support for Many Types of NFTs
On the blockchain, NFTs can reflect any physical or digital asset. That is a broad statement. OpenSea has reduced the scope to categories encompassing the most popular NFTs.
Popular NFT Projects Available for Purchase on OpenSea
In OpenSea, you can choose from various NFT classes. Some of the main types are: Sports, Music, Virtual Worlds, Collectibles, Art, Trading Cards, Domain Names.
The Future of OpenSea
Similar to the introduction of cryptocurrency, the NFT market has suddenly become popular around the globe. OpenSea was an early big player and has maintained its status to its widespread availability, user-friendly design, notable backers, and, as a result, a large level of user engagement. As time has gone by and rivals have had a chance to improve, the final point is becoming increasingly difficult to defend.
Recent months have seen Okay Bears and Trippin’ Ape Tribe help propel Magic Eden over the previous NFT marketplace’s daily raw volume of trades. Although Solana NFTs are now supported on the OpenSea platform, trading on the Solana network is significantly less developed than on Magic Eden. The previous NFT market, however, had more users and spending worldwide. However, Magic Eden has yet to overtake the industry standard.
OpenSea’s methodology has proven flexible, even when the competition heats up unexpectedly. Because of this, plus the fact that it has been the principal NFT marketplace for so long, it will likely maintain its monopoly position and thrive for the foreseeable future.
Is OpenSea safe?
NFTs and cryptocurrencies will likely continue to be vulnerable to attack. Preceding a bank and retaining your keys requires careful watch over your assets. Thus, OpenSea provides a trading platform for NFTs, but owner monitoring is required to ensure security. Possessing a hardware wallet to store your NFTs is the greatest way to safeguard your investment; however, even protected NFTs have been known to become damaged.
- Is OpenSea a legit site?
Risk is involved in any marketplace, online or physical. But, with a fantastic valuation of $13.3 billion and an incredible revenue of $350 million from the service fees it charged in 2021, it's safe to assume that OpenSea is legit.
- Can you make money on OpenSea?
The answer to this is a resounding yes. There are multiple ways to earn returns on OpenSea. The website is an open marketplace to buy digital assets in hopes of appreciation, like the stock market. Another method of making money is developing digital assets and selling them as the first party.
- Is OpenSea a good place to sell NFT?
Yes, it’s a good place to sell NFT. OpenSea dominates the NFT sales market. OpenSea offers a wide range of digital materials on its network, and it is free to register and browse the broad scope. It also helps artists and designers and offers an easy-to-use process for those who wish to establish their NFT.
- Does OpenSea have fake NFT?
The OpenSea Marketplace hosts over 80 million NFTs, which is growing daily. Unfortunately, according to OpenSea, most of these NFTs are fake or stolen.