Blockchain Cryptocurrency NFT Chapter 5 covers What Is Opensea.io Marketplace? Learn how you can earn passive income and understand how Opensea works.
One of Open Sea’s main concerns is that because it uses the Ethereum blockchain, it can incur high gas charges during peak network loads. OpenSea is, in fact, the biggest gas guzzler on the Ethereum network. To solve this problem, OpenSea has added cross-chain support for Polygon and created a gas-free marketplace. Ethereum is also trying to solve this problem by moving to Ethereum 2.0 – a more cost- and energy-efficient, proof-of-stake-based iteration of the protocol.
Customers have suffered losses due to improper use of OpenSea. In September 2021, the head of OpenSea’s product division was accused of trading NFTs based on inside information. The executive used secret crypto wallets to buy NFT drops before they were listed on the platform’s homepage to sell them shortly after they were released. OpenSea immediately responded in a blog post that it will “make recommendations on how to strengthen our existing controls” and accepted the unidentified executive’s resignation.
Blockchain technologies often develop a community around their platforms, and OpenSea is no exception. But sometimes communities experience turmoil, as OpenSea did in December 2021. The NFT marketplace faced heavy criticism after its CFO began plans to take the company public. Users felt that the company should keep its fundraising within the community, through an OpenSea token airdrop.
Following the criticism, the CEO said the company “has no plans to go public, and if we ever did, we would involve the community.”
NFT collectors, artists, investors, and traders really appreciate OpenSea, but if you are new to the platform, it’s pretty confusing. This beginner’s guide to OpenSea explains in simple terms what NFTs are, what OpenSea is and how to use it, as well as some of the best NFTs on the market.
Think of your wallet as a tool for interacting with the blockchain and something you’ll also need for buying and selling on OpenSea. But understand that OpenSea does not take ownership of your assets. It merely provides the infrastructure for peer-to-peer exchanges. OpenSea does store supplemental information on its servers, but not your NFTs. An address on the blockchain owns your NFTs, and you own the address through your private key or seed phrase.
OpenSea’s marketplace is unpledged, which means that no central party has control over transactions on the platform. Instead, transactions are facilitated by self-executing smart contracts that guarantee fair trading. Transactions on OpenSea take place either as a whole (the buyer gets the NFT and the seller gets paid) or not at all. These are referred to as atomic transactions.
Another concern is the performance of the platform. According to OpenSea’s status tracker, the website and API often run with degraded performance. OpenSea also experienced a service provider outage, as well as persistent database issues, increased API errors, and delayed response times. In response to these performance issues, the company has begun publishing a monthly website reliability report detailing the previous month’s problems and the actions taken to fix them.
In January 2022, users noticed a theft of 332 ETH, which had a value of about $800,000 at the time of the attack. OpenSea said it contacted affected customers directly and compensated them, but said the issue is fundamental to blockchain marketplaces and informed all customers how to handle their accounts to avoid this vulnerability.
The OpenSea team had a lot to prove early on. Prior to 2021, NFTs had yet to catch fire, aside from early fads like CryptoKitties. But the team’s vision that people would soon value digital objects as much – or more – than physical objects began to come true. Here is a little context to better understand what OpenSea is.
Before OpenSea, there was no easy way to do any of these things. Yes, OpenSea is a peer-to-peer marketplace for NFTs, but it is also the user interface between the blockchain and the ordinary consumer that allows anyone to buy or access NFTs.
You can find all kinds of unique digital items on OpenSea, which is touted as the first and largest NFT marketplace. In addition to digital art, there are also collectibles, game items, domain names, and even digital representations of physical goods. Basically, OpenSea is like an eBay for NFTs with millions of items organized into hundreds of categories.
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