Hello! If you have been watching out for the NFT space, then you will know the popularity the OpenSea marketplace has tucked in. According to the information provided by DappRadar, an exclusive site that provides information/analytics regarding Dapps, the user base (24 hr) of OpenSea is 24.57k.
And interestingly, the total volume of NFT transactions that happened on this marketplace in the last 24 hr equals $84.75 million. (Note: All this analytics of OpenSea is regarding the Ethereum blockchain).
Moving on, you will find this write-up a bit more interesting as it explains the OpenSea marketplace in detail and lets you know how to effectively develop your NFT marketplace like OpenSea.
OpenSea – An NFT Marketplace That Features ‘N’ Number of NFTs
To date, OpenSea is the largest marketplace for NFT trading as it amazes buyers by listing a pool of NFTs (or digital collectibles). Alex Atallah and Devin Finzer are the founders of OpenSea, and they launched the marketplace in 2017.
This March (2021), OpenSea has raised $23,000,000 in a Series A funding round from a group of Venture Capitalists (VCs). Again in July 2021, this platform raised $100,000,000 in a Series B funding round, which was led by a Venture Capitalist firm Andreessen Horowitz.
An Explanation Of OpenSea’s Business Model
Every business has a certain type of business model, irrespective of the sector or size of that business. Simply, a business model gives information about how the business functions in order to reach out to users and make money.
OpenSea is a marketplace, which is open-source. Meaning, developers can make use of the source code of this marketplace and create the software for their marketplace. Coming into the business model, OpenSea charges 2.5% commission fees from sellers on the platform.
When sellers sell their digital collectibles and get paid from the buyers, the platform will deduct 2.5% from the total amount paid by the buyers. And this platform levies commission charges only to sellers and not to buyers. Hence, buyers can use this platform for free of cost.
Workflow Of OpenSea In Detail
- How Does It Work For Buyers?
As already stated, OpenSea doesn’t charge any percent of commission charges from buyers. Every purchase transaction of buyers is made in ETH, and then the platform converts them into Wrapped Ethereum (WETH).
Thus, buyers who want to buy any kind of NFT from the OpenSea marketplace should possess ETH or WETH in their digital wallet. The price of a particular NFT can either be fixed or depend on the auction price, which will be defined by the seller.
Each NFT or digital collectible will have smart contracts, which define the set of conditions. The creator of NFTs will determine the conditions to be etched on the smart contracts. For example, a seller may define that the buyer of his/her digital collectibles can resale the same on specific platforms only. Similarly, the seller can also specify the percentage of royalties to be paid by the buyer.
- How Does It Work For Sellers?
Well, OpenSea can be used for secondary sales. Meaning, a person might have bought NFTs from a marketplace platform like Rarible, Foundation, SuperRare, etc. Now, they can sell the digital collectible on OpenSea without any hassles. Hence, it is clear that OpenSea doesn’t restrict the selling of digital collectibles, which were previously bought from another platform.
As OpenSea supports secondary sales as well as every category of NFT, it has become the largest marketplace.
An Explanation Of Steps Associated With Selling NFTs In OpenSea
1. Integrating A Digital Wallet
By default, OpenSea uses MetaMask as its digital wallet, in which users can store their ETH. Also, it lets users link any digital wallet of their choice. For example, if the user doesn’t have a MetaMask wallet, then they can transfer the ETH stored in that wallet (can be Coinbase, Binance, etc.) with this platform’s MetaMask wallet.
Note: MetaMask will charge transaction fees amounting to 0.875% for every transaction.
2. Opening An Account In OpenSea
New users, while setting up their OpenSea account, will have to pay a one-time fee. Once they pay, their account will get activated. Further, they can start uploading their NFT collections and mint them.
3. Upload the file
After initializing the account, creators can start uploading the files that hold the digital items that are to be converted into NFTs on the platform.
Creators will reach the minting phase after uploading the files. For their assets to be converted into digital collectibles, they have to add the required information like name, description, price, and ownership details. All this mandatory information will be added to the blockchain network, which marks the completion of the minting process.
Notably, minting incurs a percentage of fees, which is otherwise called gas fees. The gas fee isn’t a fixed one. Instead, it varies depending on the demand that checks in.
5. Listing, approval, and selling
Till now, only the creator knows the type/number of NFTs they have added to the platform. If and only if the digital collectibles are shown to the buyers, they may show interest in buying them. Hence, all the digital collectibles are listed, and the platform approves them.
Once they get approval and any buyers come forward to purchase the collectible, the smart contract will be run, and the collectible gets transferred to the buyer.
An NFT marketplace like OpenSea will sustain its position and be among the top marketplace platforms. The crucial factors that let this platform stay on the top include the pool of digital collectibles, secondary sales, and the effectiveness of trading.
Building such a sturdy platform that is a coalesce of different kinds of collectibles needs help from proficient developers. Most of all, you can make the most out of the white-label OpenSea NFT marketplace solution since it is a completely ready-made solution. So, when are you going to check in the NFT industry with your well-functioning marketplace platform? “Now” is the best time to do so. Good luck!