OpenSea is a decentralized exchange (DEX), or more precisely a decentralized marketplace for NFTs (non-fungible tokens) running both on the Ethereum blockchain, Polygon, and Klaytn. The trading platform is completely decentralized, meaning the platform is programmed to function without a third party acting as a central authority, thus enabling true peer-to-peer interactions.
Traded are collectibles, which are tokenised into NFTs through the platform. The items to be transformed into NFTs can be purely digital or have a real counterpart, tokenisation just serves as a means to assign a digital identity to these objects on the blockchain. For example, one could upload a digital painting to the OpenSea collection manager, there the piece would be transformed into an NFT. The newly minted NFT would have an unique digital signature and the NFT holder would have ownership over the piece on the Blockchain.
NFTS can be traded and collected through OpenSea. Every unique digitally convertible asset e.g., paintings, artworks, music pieces, video clips, domain names, or trading cards can be transformed into an NFT via this platform. These collectibles can first be created via OpenSea as described and then traded. Like on ebay, auctions take place. One can release a NFT for auction, whereby there are two types of auction:
English auction: The seller gets price proposals from the bidders. Usually the highest bidder wins the auction.
Dutch auction: The bidder sets a starting price, but this price drops over time. Bidders can make an offer at any time.
The main currency of the platform is Ether (ETH), the coin of the Ethereum blockchain. Other the coins such as WETH, DAI or USDC are also accepted for settlement. As of August 2021, the trading platform's turnover volume was over $3 billion, connecting the world of art with the Blockchain ecosystem.
Photo by Milada Vigerova