What is OpenSea? P2P NFT Marketplace explained

What is OpenSea?

Open Sea has risen to the ranks of unicorns with a size of $1.5 billion, which is rare in the NFT ecosystem. When open, the peer-to-peer market is one of the most widely used markets in the world, with a sharp rise in 2021.

In particular, despite the market downturn over the past two months, we achieved record sales in June. After raising $100 million in funding in July, OpenSea joined the NBA Topshot as one of the billion-dollar unicorns in the NFT ecosystem.

OpenSea is a marketplace for buyers and sellers of non-fungible tokens (NFTs). The NFT environment has evolved rapidly since 2017, and NFTs are currently the most used to represent audio, video, and images. NFT’s digital ownership is perfect for the creation and sale of digital artwork, collectibles, game items and event tickets, and unprecedented and sophisticated applications will continue to roll out.

OpenSea allows you to buy and sell any type of NFT. Think of eBay as digital art and collectibles. OpenSea and its rivals Nifty Gateway and Superrare are distinguished from each other by their simplicity. End users can easily create NFTs to sell. This is one of the appeals of the platform upon opening and has become a key driver of user adoption.

People can not only buy and sell art on the platform when open, but also see how their personal creations are bought and sold on the open market. In this way, NFT marketplaces provide an immediate way to establish relationships between buyers and sellers. Artists can experiment with their works directly through the platform and check how much their works are worth in the market. Buyers buy NFT artworks because they like the artwork, feel it’s an investment, or to support the artist.

Also, OpenSea has a clean interface. However, not all NFT sites have the same interface when they open. NFTs are easy enough to fabricate, and they can take several parameters. Additionally, fluctuations in royalty fees on sales in secondary markets allow for potential revenue generation. Creators of NFTs may choose to receive a percentage commission for their additional sales. However, excessively high fees can reduce sales, which can be detrimental to revenue generation.

Another feature is unlockable content that is only visible to the buyer, ie hidden data, and there is a specific game application for this, but it remains undeveloped.

Is Open Sea Multi-Chain?

Another positive aspect of OpenSea is its commitment to multi-crypto and multi-chain. If the item is on the Ethereum blockchain, you can price the item in the cryptocurrency of your choice. In the future, it is expected that NFT transactions will be possible on the Flow and Tezos blockchains at the time of opening.

“Some items are not immediately interoperable,” OpenSea CEO Devin Finzer said in an Unchained podcast. We can support everything, but we evaluate and operate on what the needs of our users are.” “I am confident that we will be living in a multi-chain world for the next few years,” he said. mentioned. He also said, “It will be a bit complicated for the time being because multi-chain is one chain that rules everything.” added.

What is possible with OpenSea?

OpenSea includes several categories that show just how diverse the NFT space is. OpenSea is a major NFT player, especially with the following characteristics:

• Art – Beeple, FEWOCiOUS and Trevor Jones sold their work through the OpenSea platform, which was one of the first NFT marketplaces for digital artists.
• Music – Musicians like The Weeknd, Richie Hawtin and RAC have released exclusive NFTs.
• Domain Names – Censorship-resistant blockchain domains such as Unstoppable Domains, Ethereum Name Service (ENS ), and Decentraland Names can be purchased with NFT.
• Virtual worlds – Decentraland (NFT), Sandbox ( Sandbox ), Arcona (Arcona), etc.
• Trading cards – Sorare, Gods Unchained, $MEME and more can be found in categories.
• Collectibles – Includes several types of collectibles, including Cryptokitties, Cryptopunks, Hashmasks, and more.
• Sports – Recently, through an exclusive partnership with Rob Gronkowski, he became one of the first athletes to launch his own NFT collection. Open City said they could expand this partnership to more players in the future.
• Utilities – These NFT tokens can function as redeemable rewards or membership NFTs. However, more uses are expected in the future.

How does OpenSea monetize?

OpenSea generates revenue with a standard deal of 2.5% on all sales on its platform. Unlike other platforms, there is no additional charge for buyers. OpenSea is generally cheaper than other platforms, some of which charge up to 7.5% per sale.

OpenSea vs. Superrare: What’s the difference?

Strictly speaking, any NFT that can be bought and sold on Superrare can also be bought and sold on OpenSea, but there are some differences between the two.

Open Sea has built a reputation for creating, selling, and collectible marketplaces for sophisticated digital art focused on exclusive collections, while Open Sea attracts large numbers of NFTs. When selling NFTs, Superrare charges a listing fee, whereas OpenSea only charges at the time of sale. Both are built on top of the Ethereum network, and Opensea can pass gas rates to first-time buyers if they wish.

Is OpenSea Centralized?

Devin Finzer, CEO of OpenSea, has stated that he does not want the marketplace to censor P2P transactions. Nevertheless, the market remains centralized and authoritative. Fraudulent Cryptokitties and Cypherpunks will be removed along with all other copyrighted material. Pinzer has said that a market in the form of a Silk Road is possible in the future, but it doesn’t seem like the path his team wants to go.

Their policies were put to the test this year when Matthew Hickey of security firm Hacker House raised the question of users’ need for freedom to buy and sell. Hickey, with support from the NFT, posted information about a vulnerability in the Quake 3 first-person shooter engine. NFT buyers could cause a denial of service on the gaming network. Naturally, OpenSea intervened with the NFT, halting it and refusing to sell it on the platform.

The OpenSea move has caused controversy in its own right. The blockchain community did not accept censorship well, and centralization indicators for the NFT market were once again discussed. Regarding the NFT suspension, Hickey believes that “there should be no restrictions on the types of digital asset sales. If technology is to change the notion of intellectual property, copyright, digital rights management and other digital rights, I believe that NFTs’ current centralized exchange model should be decentralized to allow direct peer-to-peer transfer of assets.” said.

If OpenSea can intervene and control sales and purchases, is this really the decentralized protocol that many blockchain communities are aiming for? Hickey NFT also came out thanks to the NiftyGateway hack in March 2021. The NFT Marketplace accessed users’ NiftyGateway wallets to track some of the stolen NFT works and restored them to their rightful owners.

This was good news for owners, but not only good news for those looking to decentralize. Whether we can see a truly decentralized marketplace remains to be seen. Whether this is possible remains a question, especially given that these markets are accountable to the various actors in the NFT ecosystem.

What is the future of OpenSea?

The latest funding for OpenSea was led by venture capital firm Andreessen Horowitz and included investments such as Kevin Durant and Ashton Kutcher. OpenSea consistently ranks in the top 5 on DappRadar ‘s DApp Marketplace, and thus has a lot of support and users.

However, even though NFTs are just starting out, there is a lot of competition going on. OpenSea developer Devin Finzer said in Unchained that the current NFT rise is “a tide that lifts boats.” Commenting, he hinted that he wasn’t worried about the competition at all. The future of NFTs is really wide open, and no one knows yet who will succeed over time.

Expanding to other blockchain networks like Tezos, Klaytn, and Flow over the next few months will attract new users and allow OpenSea to lead the way in NFT cross-chain interoperability. And no matter which direction the NFT goes, OpenSea will follow suit, and Devin Finzer said, “It’s getting a lot more interesting than a one-off art sale.” The art is still cool, but I have high expectations for the use of games, event ticketing, domain names, etc.”

Conclusion

Open Sea is an easy-to-access platform for beginners who want to create their own NFTs at a low cost and with very little difficulty. Despite high gas rates and market ups and downs, people continue to use and trade on the Opean Sea site. Open City has an advantageous position as a leading market and is positioned as a platform for the multi-chain world.

Are NFTs Disrupting the Digital Art Field?

NFTs have many advantages that have changed the way we collect, make and appreciate art.

NFTs give artists more freedom to connect directly with interested buyers.

In addition to the traceability of digital artworks, NFTs also make art more popular, and Binance NFTs and similar markets have contributed to this.

Some things work better together, like peanut butter and jam, as do NFTs and art.

Christie’s makes international headlines for Beeple’s EVERYDAYS: THE FIRST 5000 DAYS ; multi-identity artist Grimes sells $6 million worth of digital art as non-fungible tokens (NFTs), thus bringing NFTs into the digital age The trend of thought has captured the hearts of many artists and collectors. For example, prior to the advent of NFTs, it was difficult for artists to create valuable or scarce digital artworks. But because NFTs are secure on an immutable public ledger, digital assets can now be traced, recorded, and authenticated just like physical objects, bringing a fundamental shift to the art world.

What is NFT art?

Non-Fungible Tokens (NFTs) are encrypted tokens issued on the blockchain that uniquely correspond to digital assets such as artwork, music or collectibles. Each NFT has a unique identifier that is used to distinguish it from other tokens. This means that NFTs cannot be modified nor copied. NFT art is just a digital artwork presented in the form of tokens on the blockchain network, and it can also be used as a proof of artwork traceability and authenticity.

Non-homogeneity is a game-changer for digital artists

NFTs are irreplaceable because each NFT is a unique digital asset that cannot be interchanged or copied. For example, bitcoin is fungible, you can exchange one bitcoin for another and get something that is completely homogenous. But a one-of-a-kind painting like the Mona Lisa is irreplaceable. Sure, you can buy replicas of Mona Lisa paintings, but there is only one original Mona Lisa painting.

While the non-homogeneity of NFTs is the determinant of the scarcity and value of NFT artwork, the value of NFTs also depends on several other factors: the team behind it, the use case, the community, or market supply and demand.

How are NFTs changing the art world?

Common advantages of NFTs include proof of ownership, freedom of issuance, and immutability of records, which have revolutionized the way we create, collect, and own art. Below we’ll highlight seven other ways NFTs are disrupting the art world.

Connecting Artists to Global Audiences

In a sense, galleries are gatekeepers of art, because it is up to the gallery to decide what art to display. Compared with traditional art institutions, the NFT market is more tolerant of emerging artists and niche art concepts. As a result, artists can thrive outside of galleries and auction houses.

Potential ongoing income for artists

Often after an artist sells a work, they can no longer make any money from subsequent resale of the work. NFTs have revolutionized the second-hand art market, allowing artists to use smart contracts to determine the royalties they should receive. A smart contract is a blockchain program that automatically performs tasks when certain conditions are met. Artists can set rules in smart contracts to demand royalties when their NFT artwork changes hands in the secondary market.

Leaving out intermediaries

Traditionally, galleries and some online marketplaces take a percentage of sales from an artist’s earnings. With NFTs, artists can interact directly with buyers and sell their art on the NFT marketplace without the need for agents or intermediaries.

Increase the transparency of transactions

The authenticity and provenance of an artwork are two factors that influence a buyer’s decision. Often it is an auction house or gallery that verifies these metrics, and while genuine identification errors and elaborate fakes are rare, they are not uncommon.

Because NFTs are secure on the blockchain network, anyone can track the transaction and ownership records of paintings for authenticity. In addition to this, the blockchain ledger is immutable, thus greatly reducing the risk of forgery.

It’s not just digital art that benefits from NFTs. When it comes to physical artwork, NFTs can act as digital certificates to prove the authenticity of the artwork, and some artists make digital and physical works into one NFT. Compared with a thin piece of paper, it is safer to use NFT to record ownership, traceability, and reduce the risk of counterfeiting.

Remove barriers to entry

The growing popularity of NFTs, coupled with the ease of access to the NFT marketplace, has demystified galleries and auction houses. NFT galleries have sprung up around the world after the prestigious Hermitage Museum in Russia recognized NFTs as an art-carrying form. Art is no longer out of reach, artists have a wider space to connect with potential clients from all walks of life.

Driving innovation in the arts

As a newly recognized art form, NFTs have been pushing the boundaries of creativity and innovation since their conception, and some famous artists have begun to discover their potential.

In 2021, world-renowned artist and notorious art spy, Damien Hirst, launched an offensive against the potential of NFTs. The Currency is his hand-painted polka dot collection, containing 10,000 NFTs, each of which corresponds to 10,000 corresponding physical A4 versions. Each real item has a watermark and hologram, making it difficult to counterfeit.

But here’s the catch: Art buyers must make a choice whether to keep the digital or physical version of the artwork. They have one year to make a decision, counting from the date the NFT is issued. If they choose to keep the NFT, the physical artwork will be destroyed, and vice versa. A decision must be made by July 2022 at the latest.

Conclusion

The NFT phenomenon has lifted the veil on the mysterious art world and opened up new opportunities for artists and collectors. Compared to galleries and auction houses, the NFT market is more inclusive, giving emerging artists some unique ideas and giving novice art collectors the opportunity to explore art in their own way.

While NFT technology is still relatively new, the current trajectory of the field suggests that NFTs will continue to provide new opportunities and experiences for artists and collectors.

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