OpenSea – Crypto Glossary:
Definition: OpenSea is a decentralized peer-to-peer marketplace specializing in the buying, selling, and trading of non-fungible tokens (NFTs) on the Ethereum blockchain. NFTs are unique, indivisible digital assets with inherent value, making them ideal for representing various digital collectibles, art, in-game items, and more.
Key Characteristics:
- NFT Marketplace: OpenSea is renowned as the world’s largest decentralized NFT marketplace, where users can explore, trade, and acquire a diverse range of NFTs.
- Diverse NFT Categories: OpenSea offers a vast selection of NFT categories, including digital art, virtual real estate, collectible items, trading cards, music, avatars, and more. It serves as a hub for a wide array of digital assets with unique characteristics.
- User-Created NFT Collections: Users have the freedom to create and establish their own NFT collections on OpenSea, expanding the platform’s diversity and enabling artists and creators to showcase their work.
- Decentralized Trading: OpenSea’s marketplace operates on the principles of decentralization, allowing users to trade NFTs peer-to-peer without the need for centralized intermediaries.
- Custody and Smart Contracts: OpenSea employs smart contracts to facilitate NFT trading, eliminating the need for the platform to hold custody of the assets. Users maintain ownership of their NFTs in their chosen digital wallets.
- Transaction Fees: OpenSea charges a transaction fee of 2.5% on the sale price of each NFT, which is considered one of the lowest fees in the NFT space (as of April 2021).
- Payment Options: While Ethereum (ETH) is the default cryptocurrency for transactions on OpenSea, the platform accepts over 200 payment options, including DAI, USDC, REVV, SAND, MANA, wBTC, MEME, and many more, providing flexibility to users.
Founding and Growth: OpenSea was founded in 2017 by Devin Finzer and Alex Atallah in New York City. The platform gained significant attention and popularity during the 2021 bull run, aligning with the widespread interest in NFTs and digital collectibles. It played a pivotal role in facilitating the buying and selling of NFTs, making it a prominent player in the NFT ecosystem.