OpenSea Enhances ERC721-C Trading Functionality with Seaport Hooks, Ensuring Profitability for Creators
After the upgrade in Cancun, OpenSea recently introduced Seaport Hooks, which allows creators to set transaction conditions for trading NFTs. The first Hooks feature officially promoted by OpenSea is to support the long-discussed ERC721-C in order to ensure that creators receive royalties.
Table of Contents
Background: ERC721-C
Royalty Rules not Written in ERC721
ERC721-C: On-Chain Royalty Rules
OpenSea to Use ERC721-C Functionality
Seaport Hooks: Custom NFT Trading Plugins
Seaport Hooks to Introduce ERC721-C
Since the beginning, NFT royalties have not been included in the core code of ERC721 and ERC1155 standards. In the past, royalty distribution was mostly carried out by the contracts of NFT marketplaces, resulting in inconsistent and chaotic implementation of royalties across markets.
For example, in the past, Blur waged war on OpenSea using optional royalty rules, and later OpenSea compromised and opened up optional royalty rules. However, Magic Eden later collaborated with Yuga Labs to launch a mandatory royalty market, and so on.
The above phenomena indicate that creators or NFT contract creators do not have the authority to determine their own income.
In view of this, in May last year, the Limit Break team introduced the new NFT standard, ERC721-C, which inherits ERC721 and incorporates royalty rules into NFT contracts. It also supports more diverse settings, such as custom royalties, sharing royalties with creators, and programmable royalty rules (e.g. setting addresses that hold for a year to be exempt from royalties).
The most important change of ERC721-C is that when royalty rules are written into the contract of an NFT, the creator’s income will not be reduced regardless of which trading market the transaction occurs in.
ERC721-C: On-Chain Royalty Rules for NFTs
ERC721-C and ERC1155-C are fully compatible with existing standards, allowing creators to choose their trading platforms and interact only with contracts they consider safe and useful.
OpenSea announced that creators can now set and execute ERC721-C contracts on OpenSea to ensure their income from creations.
Two weeks ago, the team launched Seaport v1.6, introducing the concept of Seaport Hooks. Seaport Hooks allows creators to set conditions that need to be met before transferring their NFTs or construct other trading models for NFTs. It is similar to the Hooks mechanism of Uniswap V4. For more information, please refer to the official documentation.
Seaport Hooks: Uniswap Hooks for NFT Trading
The first Hooks feature promoted by the official team, Seaport Hooks, allows creators to customize fees to obtain the mandatory royalty functionality of ERC721-C.
Regardless of whether the creator has income or not, the original ERC721-C contract cannot be bought or sold on OpenSea’s existing contracts. By using the functionality of Seaport Hooks, ERC721-C can be introduced to OpenSea. However, the owner of the NFT contract must set the compatibility of ERC721-C in the OpenSea Creator Studio.
Why is OpenSea implementing related functionality only now? This is because the functionality of Seaport Hooks is enabled by the new code introduced in the recent Ethereum network upgrade, Cancun (Dencun).
Recommended Reading:
What Impact Does the Cancun Upgrade Have on Users? Key Summary of ChainNews Offline Gathering at Ramble Bar
Reason for Recommendation: The article mentions that in addition to the well-known EIP-4844, the Cancun upgrade also made changes to the underlying OPCode. Therefore, it is understandable why Uniswap Hooks and Seaport Hooks were launched recently.
Starting today, creators can deploy NFTs that are compatible with ERC721-C (if the contract is compatible) through the OpenSea Creator Studio to obtain mandatory royalty functionality. For more information, please refer to the official documentation.
ERC721-C
OpenSea
Seaport
Seaport Hooks
Uniswap Hooks
Royalties
Extended Reading:
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