All You Need To Know About Working of OpenSea

The Covid 19 pandemic made us all go virtual. Many startups catering to the digital needs sprang during this time, being huge successes. One such startup OpenSea gained global fame for its unique idea for trading digital assets. After it went live in March 2020, the company became the first and the largest marketplace for trading NFT’s. 

 

What is NFT? 

An NFT is a Nonfugible Token computer file used to track ownership of some unique digital assets like art and music on a ledger known as a blockchain. But, is it possible to make NFT in 10 minutes? NFT has exciting new properties; they are unique, tradeable, and usable across multiple platforms, but only in the virtual world. You can do whatever you want with them, just like physical goods. 

They are also used as gifts to loved ones across the globe. There is only one glitch. You cannot flaunt them in the real world like your nickels and diamonds. They are just a digital show-off, armed with all the programmability of digital goods. This is everything you need to know about NFTs. 

 

How does OpenSea work? 

OpenSea deals in a brand new type of digital food called NFT. This platform was founded in 2017 by Devin Finzer. It offers a wide variety of available products across 200 categories. These items mainly include sales of the decentralized domain, NFT of art, music, and gaming, and virtual assets. 

 

NFT and Cryptocurrency

 

Working of OpenSea 

OpenSea is built on NFT technology and runs on the Ethereum blockchain. The users using this platform interact using smart contracts. This is necessary so that the users can trade and interact through secure digital assets. Also, they can take custody of their items in the wallet digitally. Speaking on the economic front, OpenSea gets a 2.5 percent cut in every item they sell online. 

In 26 months after they went live, the company had 4000 active users doing a business worth 1.1 million dollars in a month. The company's rapid growth made them cent millionaires, especially during the lockdown. 

This platform is used to create, discover, buy and sell exclusive NFT’s and other crypto products such as collectibles and other virtual assets on a blockchain. It tracks 

It accepts ETH and DAI as the network's default cryptocurrencies to conduct any transactions through the platform. However, lately, the platform has also started accepting more than 200 forms of cryptocurrencies for transactions. 

 

How to create an account on OpenSea 

To set up an OpenSea account, you must use a web3 wallet like MetaMask. This enables the user to interact with as many cryptocurrencies or Ethereum based applications. 

After your account has been set up, you can fund it through ETH. Once done, you are now free to make transactions through the website. 

 

NFT and Cryptocurrency

 

What Challenges is OpenSea facing?

Word is around that corner that OpenSea flourished because it was at the right place at the right time. However, the company faced an alleged major security breach, in which people using this platform claimed that they were hacked when they received a gift NFT. The company denies any such claims, though. 

Interestingly, if sources are to be believed, OpenSea has worked on fixing some vulnerabilities, though its owners claim otherwise. OpenSea is working with third-party wallet providers to help recognize these malicious signature requests. 

 

Conclusion 

OpenSea, though it is making tremendous progress, it has to keep its checkpoints to prevent its users from security breaches. Also, the increasing competition in the NFT and Crypto market is another reason for them to stay alert in the post-pandemic era. 

 

We at OpenGrowth, are committed to keeping you updated with the best content on the latest trendy topics from any major field. Also, both your feedback and suggestions are valuable to us. So, do share them in the comment section below. 

An artist by heart and a writer by profession, Prachi is a vivacious reader.  She believes in hard work and her dedication has never let her down. She puts her heart and soul in everthing she does. Though life has not been a bed of roses for her, she affirms that the best way to live it is to maintain an equillibrium between the tunes of life.  

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