OpenSea is a game-changing decentralized marketplace for buying and selling NFTs. In case you were wondering, NFT stands for Non-Fungible Tokens. Which are unique, collectible digital objects such as game assets, avatars, trading cards, and artwork.
In August 2021 alone, OpenSea’s NFT transaction volume exceeded $3.5 billion. Comparing that the full-year trading volume in 2020 was only 21 million US dollars. It can say that an increase in trading activity of 12,000% is indeed a real success.
Investors such as Mark Cuban, Kevin Durant, Ashton Kutcher, and cryptocurrency giant a16z helped propel OpenSea’s valuation to over $1 billion. Apparently giving the NFT platform’s young unicorn status overnight.
NFT collectors, artists, investors and traders all praise OpenSea. But if you are new to the platform, it can create confusion. This OpenSea beginner’s guide gives you a simple explanation of NFT. What OpenSea is + how to use it, and some of the best NFT on the market.
Let us Explain NFT (Non-Fungible Tokens)
Before learning OpenSea, understand first that NFT can save you from confusion in the future. NFT is an irreplaceable token. This doesn’t tell you too much, there’s still a lot to cover.
One alternative to tokens is digital coins, such as what is Bitcoin. Which are exchange transactions. Exchangeable tokens are not called unique, which means that Bitcoin is always the same as any other Bitcoin. The same is true for traditional currencies. If you trade US dollar bills with someone, you both have nothing to lose, because US dollar bills are interchangeable.
Instead, the meaning of irreplaceable is a token that represents a unique digital commodity. Imagine avatars like CryptoPunks, in-game collectibles like Axie Infinity, and original digital artwork. So if you have CryptoPunk NFT and your friend has Bored Ape YC NFT. They are not interchangeable like currencies because they are different digital objects.
Various digital creators have locked down NFT. Because they have allowed the ownership of provable digital objects for the first time in history. More importantly, they allow creators and collectors to directly trade with each other. This is what OpenSea’s peer-to-peer NFT marketplace is all about.
What Is The OpenSea NFT Marketplace?
OpenSea calls itself the world The first and largest NFT market. But more simply, you can think of OpenSea as the eBay of digital objects and collectibles.
In early 2017, Alex Atallah and Devin Finzer founded OpenSea in New York City. Soon after, they add these companies into Y Combinator famous entrepreneurial accelerators, and quickly received the support of 2.7 million US dollars.
The OpenSea team needs to prove a lot in the early stages. Before 2021, except for early fads like cryptocurrencies, NFT has not become popular. However, the team’s vision is that people’s attention to digital objects. Will soon follow even more on the same level as physical ones.
Cryptocurrency token trading provides the initial blueprint for the current NFT boom. On a global scale, people are trading digital currencies and utility tokens all the time. They are content with digital ownership that they cannot see or feel, which shows that theera digital native has truly come.
NFT and Digital Art
In short, NFT may be very important for digital art. According to (website name), the total value of crypto art based on NFT alone is over $100 million. On the other hand, NonFungible.com estimates that the NFT encryption art department accounts for only 25% of the NFT market, reaching $62.5 million. Either way, NFT has more use cases than just digital art.
But before we start studying the OpenSea market, if you are still not sure about NFT, you can read our article “Irchangeable tokens-can NFT improve the DeFi sector?” Or better yet, at Ivan’s Tech Academy enroll and participate in a beginner’s encryption course, and have a solid understanding of all encryption content.
Once you understand that NFTs are digital assets that cannot be replicated, you should also understand that each NFT is its own marketplace. But to trade it, there needs to be a market. This is where projects like OpenSea come into play.
The Best Wallet In OpenSea
In addition to smart contract security, the second important security aspect is the cryptocurrency wallet that you use to buy and sell NFTs on OpenSea. If you want to use a dapp with ERC721 and ERC1155 assets like OpenSea, you need a secure, useful and flexible cryptocurrency wallet.
If you use a less secure wallet or share your initial/private keyphrase with others, you may be hacked and lose all your NFT and other encrypted assets.
However, in terms of security, MetaMask is not the best choice among other crypto wallets. As a hot wallet, it is connected to the Internet and is open to various threats and vulnerabilities. For choosing the best wallet. The best and safest is the Opensea as Ledger hardware wallet plus MetaMask.
You can connect your hardware wallet (aka cold wallet) to MetaMask and use dapps including OpenSea in a more secure way. With the use hardware wallet, even if MetaMask or your computer is infected, no one can access your NFT and other encrypted assets.
Is OpenSea Safety?
OpenSea is a decentralized peer-to-peer marketplace, powered by smart contracts on the Ethereum blockchain and other supporting chains. The platform basically runs through smart contracts and does not store users’ non-worth tokens (NFTs) and other encrypted assets.
Users connect their WEB3 compatible wallets (such as MetaMask) to OpenSea and buy and sell NFTs via smart contracts without trusting any third party.
So first of all, regarding security, what you need to ask is, OpenSea is a trusted and mature platform, does it also have smart contract auditing?
OpenSea is the largest digital NFT marketplace. So far, there are no serious vulnerabilities affecting most or all of the users with system crashes. OpenSea also claims that OpenSea smart contracts are “time tested” and security audited in verifiable developer documentation.
Since OpenSea is the largest and most mature NFT marketplace on the market, you don’t have to worry too much about the risk of smart contracts.
But you still have to admit that even if you are using a very popular and mature dapp like OpenSea, there may still be some undiscovered vulnerabilities in smart contracts. Cross platform this for sure.
So you should be careful about the amount you use in OpenSea and NFT, consider your smart contract risk and level of risk, and consciously take appropriate action.
Even though OpenSea is the largest trading platform, it does not mean that you can immediately buy or sell all the assets in it. This is a mistake, keep studying every decision, because different users have different limits of acceptable risk.