What is OpenSea

OpenSea is the world's largest and oldest general-purpose NFT marketplace, founded in December 2017 by Devin Finzer and Alex Atallah in New York. It allows users to buy, sell, create, and discover non-fungible tokens across multiple blockchain networks, functioning as both a primary marketplace (for new NFT project launches) and a secondary market (for trading existing NFTs between collectors).

HOW OPENSEA WORKS

Sellers list NFTs at fixed prices or as timed auctions. Buyers browse, filter, and purchase directly from the platform. OpenSea facilitates the transaction by connecting buyer and seller wallets and executing the transfer via smart contract custody of the NFT moves directly between wallets without OpenSea ever holding the assets. OpenSea is non-custodial they never hold your NFTs or cryptocurrency.

BLOCKCHAIN SUPPORT

OpenSea supports trading across multiple networks: Ethereum (the primary and most liquid market for high-value collections), Polygon (for lower-fee transactions and gaming NFTs), Solana (integrated after Magic Eden's competition), Base, Arbitrum, Optimism, Avalanche, BNB Chain, and Klaytn.

FEE STRUCTURE

OpenSea charges a platform fee of 2.5% on every sale. Creator royalties (set by the original collection's smart contract) are paid on top of this typically 5-10% going to the original artist or creator on every secondary sale. Buyers also pay gas fees for Ethereum transactions.

OPENSEA PRO AND BLUR COMPETITION

Blur launched in October 2022 as a professional trader-focused NFT marketplace with zero platform fees (funded by BLUR token emissions), faster loading times, and advanced portfolio analytics. Blur rapidly surpassed OpenSea in trading volume through 2023. OpenSea launched OpenSea Pro (an aggregator) in response. This competition significantly reduced the fees NFT traders pay.

OPENSEA'S POSITION

Despite losing volume leadership to Blur among professional traders, OpenSea retains the largest number of listed NFTs, the broadest mainstream recognition, and the most user-friendly experience for NFT newcomers.

Terms in addition to the OpenSea

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.