How does Opensea trade NFTs?

Although Opensea is currently the most important trading market for NFTs, there has always been a saying in the crypto community that Opensea is a web 2.5 product.

And as we all know, Opensea has repeatedly reported the issue of removing a certain series of NFTs. For example, on March 28, the media reported that Pudgy Penguins was suspected of being removed from the shelves by OpenSea.

Why the community views Opensea this way, we may be able to get the answer from Opensea’s transaction process.

Architecture of Opensea

Traditional Internet products commonly used by users generally adopt the classic C/S (Client/Server) architecture. However, with the progress of the world, this architecture has been unable to solve people’s needs for decentralization such as confirmation of digital assets. This is also the reason why blockchain technology was born.

The public chains after Ethereum are Turing-complete, and theoretically any problem can be solved through calculation and storage. Ethereum’s earliest narrative “world computer” stems from this.

This is equivalent to putting those services on the traditional server side that need to be immutable, open and transparent, and confirmed on the public chain. The server side has evolved into Server/Mainnet.

Coupled with the Web UI interface for ordinary users, the general architecture of encryption products has become C/S/M (Client/Server/Mainnet) .

Let’s take a look at the case of Opensea and open the https://opensea.io/activity page.

EFWsOHVE3L1n1NUPvGQUKX91UwG5ic7EqhOAZRNl.png

You can see the latest NFT transactions updated in real time.

The updated transactions in the front-end page Frame actually come from the Opensea server indexing the latest transactions of Opensea’s smart contracts on Ethereum, and are displayed on the web front-end in the form of Item, Price, Quantity, From, To, and Time.

Below we analyze a specific Opensea transaction, taking the latest transaction of the Azuki series of NFTs as an example.

Anatomy of an Opensea deal

The following picture shows the Azuki series NFT transaction history (https://opensea.io/activity/azuki?search%5BisSingleCollection%5D=true&search%5BeventTypes%5D%5B0%5D=AUCTION_SUCCESSFUL) from Opensea Server.

7ENG0l1QG7iJKJ2RMAGldSQ9SHjv2KTEWMGng96S.png

Because the Azuki#565 transaction completed 7 hours ago is more representative, let’s click on this transaction (https://etherscan.io/tx/0xf6d2f67a2f4fd290f089d8c95f8ba3c9ebff364ea0507080b06a453ea93d08af) to study.

For specific transaction information, see the red box below:

pyYV8CjBBpellTrNbKnNRpNaK3zkqSKWzl6EyXoo.png

As can be seen from the figure, this NFT was purchased by user 0xe567d9faf97b4f9f910f9e6913b07c5de2b37084 through the NFT aggregation trading platform Gem, which then called the Opensea Wyvern Exchange V2 contract to user 0x76aa3de89f98ae93aa02f6287bb7a9d6af59315c.

27.99 ETH paid to Opensea Wyvern Exchange V2 by 0xe567d9faf97b4f9f910f9e6913b07c5de2b37084 was internally transferred to two addresses: Opensea: Wallet and NFT seller (0x76aa3de89f98ae93aa02f6287bb7a9d6af59315c).

Among them, Opensea: Wallet got 2.09925 ETH, and NFT seller (0x76aa3de89f98ae93aa02f6287bb7a9d6af59315c) got 25.89075 ETH.

Opensea: Wallet’s share of 2.09925 ETH accounts for 7.5% of the total transaction volume of 27.99 ETH, which is divided into two parts, Opensea draws 2.5%, and the other 5% is the royalty of the NFT issuer. The 5% royalty is temporarily collected by Opensea: Wallet, and will be sent to the issuer in the next 2-5 days.

After opening Opensea: Wallet address (https://etherscan.io/address/0x5b3256965e7c3cf26e11fcaf296dfc8807c01073)

y7BIfTmTCIp2SZw3qTfCxR4ZdNuMqStwckGLZtB0.png

It can be found that this address may be the Opensea cold wallet address, and many large amounts of ETH were transferred to the address 0x0b7a434782792b539623fd72a428838ea4173b22, which is suspected to be the Opensea hot wallet address, and there are transfers to multiple NFT issuers.

At the same time, we also found that Opensea has repeatedly transferred large amounts of ETH to the exchange’s Coinbase hot wallet, which is suspected to be cashed out . For example, the two transfers of 3,500 ETH in the above picture, the two addresses (0x5dea948f65822ad7e24adc2520fc2b9bedb413d0, 0x98c01771452c7172fa6fca6e52967f33d4f28adf) are both Coinbase wallets.

in conclusion

After reading the above analysis, you can probably understand what Opense is.

Opense = smart contract (Opensea Wyvern Exchange V2) + Opensea server + front-end UI.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-does-opensea-trade-nfts/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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