How OpenSea Sell NFT NFT Transactions Work
Step-by-step overview of token minting, asset listing, and trading.
1. Minting Token Standards
Minting writes a unique token ID to the blockchain ledger. The token standard points to metadata stored securely, conforming to the ERC-721 token standards.
2. Listing and Bidding
To list an NFT, the seller signs a transaction specifying their asking price. Buyers submit cryptographic bids, which can be stored securely using the IPFS storage networks.
3. Executing Trades
When a bid is accepted, the smart contract settles the swap. It transfers the NFT and routes the funds. Users can inspect the trading mechanics on protocols like the Rarible protocol.
4. Royalty Settlements
The swap contracts evaluate the token's metadata configuration to automatically deduct creator royalties, routing fees directly to creators.