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OpenSea: The first decentralized NFT market

OpenSea, the first decentralized NFT market, was launched in January 2018. After watching the success of Cryptokittes, the two creators, Alex Atallah and Devin Finzer, believed that the ecosystem was ready for the NFT marketplace.

There are several alternative marketplaces for NFTs on the web, but the most popular is OpenSea, which is a decentralized non-fungible token marketplace for buying, selling, and trading NFTs. To utilize the OpenSea services such as purchasing and selling NFTs, you do not need to create an account; all you need to do is connect your Ethereum wallet to the OpenSea website.

On its website, OpenSea includes over 200 types of digital assets and over 4 million NFTs.

NFT on the uprising

Since OpenSea has grown significantly, some major players have lately shown interest in the sector. Similar to the Wax Blockchain, several well-known celebrities have begun to create and sell their own NFTs. On the OpenSea, prominent youtuber Logan Paul announced the launch of his first NFT on Twitter, which went on to net him nearly $3,5 million.

New protocol

OpenSea is introducing support for trading using the decentralized protocol Immutable X, which will allow rapid transaction confirmation while increasing scalability and charging no gas fees. The protocol, according to their news release, will be able to process over 9,000 transactions per second.

While OpenSea is the first of many markets, let’s see what the pros and cons are.

Pros

  • Competitive commissions: The platform charges are some of the lowest commission fees for buying and selling NFTs.
  • Large variety of NFT collectibles: You can easily start doing your own NFTs without any prior knowledge of blockchain and coding, and the cost of making an NFT is free, while other competitors charge fees to create NFTs.
  • Industry-leading security: OpenSea uses smart contracts which makes it almost impossible to make fraudulent transactions

Cons

  • Only accepting payments in cryptocurrency: Other marketplaces like Nifty Gateway allow the user to buy NFTs with USD, this will make it easier for collectors that own cryptocurrency to buy and sell NFTs.
  • A crypto wallet is needed to buy and sell on the platform

 

 

 

 

 

Image: Joachim Mayr

*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available normal currency or cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.

Sources

www.benzinga.com/money/opensea-review/

academy.ivanontech.com/blog/explaining-opensea-what-is-opensea-and-how-is-it-used

www.coindesk.com/nft-opensea-immutable-layer-2-protocol-ethereum

opensea.io/about