OpenSea is a marketplace comparable to eBay, Etsy, and Amazon, with the exception, that all of the things displayed are one-of-a-kind digital treasures in the form of NFTs that users may buy, sell, and mint. The platform is a decentralized peer-to-peer exchange that allows users to conduct trustless direct transactions with one another.
OpenSea was formed in 2017 by software programmers Alex Atallah and Devin Finzer, who were inspired by the release of the popular NFT series CryptoKitties and saw the potential for NFTs to provide actual ownership of digital objects for the first time.
The platform allows digital artists and content creators to mint NFTs, establish unique marketplaces and NFT collections, set fees for their tokens, and sell them through auctions.
How OpenSea works
The marketplace on OpenSea is non-custodial, which means that no central entity has control over the platform’s transactions. Instead, self-executing smart contracts facilitate transactions and ensure fair commerce. On OpenSea, transactions are either completed (the buyer receives the NFT and the seller is compensated) or they are not completed at all. Atomic transactions are what they’re called.
Because OpenSea is a peer-to-peer marketplace, there is no middleman between the buyer and seller. Despite this, the site keeps 2.5 percent of each transaction. The costs of competitors range from 0% to 15%.
The Wyvern Protocol, which is a set of smart contracts on the Ethereum blockchain meant to facilitate the buying and trading of unique digital goods, is at the heart of OpenSea’s architecture. The platform supports Ethereum, Polygon, and Klatyn, as well as other blockchains.
OpenSea revamping its NFT marketplace
OpenSea, one of the major NFT markets, has revamped its profile and collections pages in order to make the site more user-friendly and to focus attention on the NFTs themselves. In a blog post published on Thursday, the business stated that these changes are “only the beginning” of its efforts to improve the site’s functionality.
OpenSea’s new profile pages, in my perspective, resemble those of Twitter and Etsy. However, this isn’t always a terrible thing. The previous version of the marketplace could be a little difficult to navigate at times, but it appears that the marketplace has smoothed out some of the rough edges.
The collection page, which displays groups of NFTs, has been updated as well. It has a more modern appearance and places less focus on metrics such as how many people own certain NFTs and what the collection’s lowest NFT is.
OpenSea dropping its sales
While the redesigns are good, they come at an inconvenient moment. NFT sales have been dropping throughout the past year, sometimes at a rapid pace. (To be fair, OpenSea didn’t establish a totally new NFT marketplace at this time, as Coinbase did, with disastrous outcomes thus far.)
OpenSea’s average selling price, the number of traders, and sales volume have all decreased since last month, according to DappRadar, while it still maintains its position as the most active marketplace in terms of dollars spent.
According to NonFungible data, the NFT market as a whole has also continued to decrease, albeit the picture varies depending on how you slice it. If you look at daily averages, you’ll notice that both the number and dollar amount of sales have been falling all year (despite a massive spike on May 1st when the company behind the Bored Ape Yacht Club launched a project called Otherside). The volume of sales is still down on a monthly basis, but the dollar amount of sales has increased.
Although a makeover is unlikely to revitalize the NFT market, those who remain (DappRadar reports that close to 124,000 individuals have used OpenSea in the last week) should enjoy a better experience.