NFTs: A Deep Dive Into Digital Asset Universe

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7 Jan 2024

1. What is a Non-Fungible Token (NFT)?

As mentioned in our previous section, an NFT is a unique and immutable type of digital asset recorded on a blockchain-based platform.

2. How Does It Work?

NFTs are typically created on Ethereum as this platform supports standards such as ERC-721 and ERC-1155 which ensure that each token is unique.

3. Revolution in Art

The balance of power in the art world shifts as digital artists now have the ability to sell their works directly to consumers. Moreover, buyers know exactly what they're getting and who it's from.

4. Change In The Music Industry

Musicians too have begun leveraging NFT technology with Kings of Leon leading the trend by releasing their new album as an NFT.

5. Use In Sports

Organizations across other sectors including sports industry have started seeing opportunities in tokenizing unique moments or collectibles.

6.New Opportunities In Gaming Sector

In gaming sector players can tokenize game items and buy or sell them for real-world money.
##7.Nft Collections Sold At Gigantic Prices
Recently some significant NFTs were listed at astronomical prices:

"Everydays: The First 5000 Days" by Beeple was auctioned off at Christie's auction house for $69 million.
LeBron James slam dunk clip from NBA Top Shot sold for approximately $208K,
CryptoPunk #7804 punk character has reached a value of $7.6 million.

What is OpenSea?

OpenSea, founded in 2017 by Alex Atallah and Devin Finzer, is known as one of the first and largest peer-to-peer marketplaces for buying, selling and trading non-fungible tokens (NFTs). It operates on the Ethereum blockchain and supports a vast array of NFT categories including art, domains, virtual world items, trading cards, sports collectibles and more.

https://opensea.io/

Trading Volume on OpenSea

In terms of transaction volumes - which refer to the total value of all sales completed within a certain period - OpenSea has seen tremendous growth. According to DappRadar data as of late 2021:

The platform hit a monthly trade volume high above $3 billion in August 2021.
In September 2021 alone it processed over $2 billion worth transactions.

These figures indicate how rapidly this marketplace has grown amid booming interest in NFTs.

How Does It Work?

On OpenSea users can create their own customizable storefront or browse through different categories to find unique digital assets. Each item listed comes with detailed metadata that provides information about its creator, ownership history and price trajectory among other things.
One key feature that sets apart OpenSea from many other platforms is its support for ERC721 & ERC1155 standards allowing both single-item (like artwork) or multiple-item listings (like gaming items).

Future Prospects

The future looks promising for OpenSea given continuous surge in popularity of NFTs across various sectors like art, music etc., However it’s important to remember that despite impressive growth numbers there are potential risks due to regulatory uncertainties around cryptocurrencies globally.

Opensea is the most well-known market in the NFT market, but there are many alternative marketplaces in this sector.

Some of these;