The NFT (Non-Fungible Token) market has now turned into a giant industry.
NFTs are widely popular, especially when it comes to art and collectibles. Nonetheless, virtual artwork is not the only thing NFTs are capable of.
One can use them to buy digital lands in the virtual worlds, buy or trade gaming items like avatars, buy event tickets, and much more…
As per industry reports, the global NFT market size which was $ 1894.4 million in 2021 is now expected to hit $5093.3 million by 2028 growing at a CAGR of 17.9 percent between 2022-2028.
This is inspiring entrepreneurs and business enthusiasts from around the world to step into the NFT market & build their own NFT Marketplace.
But before that, it’s important to know What NFT Marketplace actually is, what are its key features and the ideal process to create an NFT Marketplace!
So, let’s discuss the same one-by-one
What is an NFT Marketplace?
Putting it simply, an NFT marketplace is simply an online storefront where customers can purchase and sell digital goods including music, games, collectibles, and other products. The non-fungible token is a name given to these assets connected to Ethereum and blockchain technology.
Just because every NFT is different, we are unable to trade it for another digital asset because there isn’t one like it. They are called non-fungible tokens specifically for this reason.
NFT Marketplace Development – Key Benefits
By providing a more transparent, secure, and effective means of exchanging assets, the emergence of NFT marketplaces is revolutionizing the look of online transactions.
Here is a summary of the main advantages of NFT markets that shows why they are the greatest way to conduct online business and why they are the ideal solution for you.
- Transparency: The majority of conventional marketplaces struggle to build the trust and confidence necessary for business transactions. NFT transactions are all transparent to users thanks to the blockchain technology that NFTs are founded on. Through error-free payment processes and a pleasant user experience, this builds users’ faith in distributed databases.
- Unique Ownership: The advantage of creating an NFT marketplace is the opportunity to gain the loyalty and confidence of your users. A non-fungible token is a record of ownership that is available to the public and can be verified if necessary. An NFT cannot be faked as a result.
- Liquidity: Due to the increasing demand for cryptocurrencies and NFTs, you should invest in an NFT marketplace. Decentralization encourages people to actively invest in digital assets as well. The NFT now has more liquidity as a result. Additionally, built-in liquidity characteristics of NFT marketplaces guarantee that NFTs are easily exchanged or traded for other assets. Simply said, you don’t need to wait for buyers to materialize to convert your NFTs into other assets.
- Security: Blockchain technology is used to secure every transaction made in the NFT marketplace. You can enjoy all the advantages of highly secure transactions, which protect you from transaction loss and guarantee that no one can steal your digital assets or engage in fraud. Your assets won’t be deleted, changed, or lost from the blockchain network because it is immutable.
- Rapid Payments: On the NFT marketplace, cryptocurrency transactions and payments can be done without a user’s full name, address, or credit card number. This enables making rapid payments for anyone simple, quick, and private.
The Process to Build an NFT Marketplace
The challenges of getting NFTs to individuals around the world have found several solutions thanks to NFT Marketplace Development. A skilled team is working on the planning, deployment, and many other work procedures involved in the development of the NFT market. To launch an NFT Marketplace for the worldwide market, a well-versed team of blockchain engineers uses a variety of technology stacks.
The creation of NFT markets is planned by blockchain professionals using the blockchain ecosystem, and these marketplaces have their advantages relative to the blockchain network that has been established. But in recent times, several NFT markets have been created with multi-chain interoperability for the platform’s and users’ mutual benefit. Developers mostly focus on the following order when they make your NFT marketplace live to the international market.
NFT Marketplace: Architecture
Maintaining uniformity and creating a user-friendly interface is crucial when creating an NFT marketplace for both new and seasoned users. Wallets, smart contracts, IPFS, and a blockchain on which the platform would operate are required as architectural elements of an NFT marketplace.
- Integration of blockchain: A fully functional NFT market can be created using a variety of blockchain networks. These include blockchain networks that are public, private, consortium-based, and hybrid. The technology aids in the storage of data about NFTs and platform transactions.
- Digital Wallet: A digital wallet is an electronic wallet that enables users to store digital currency. Additionally, it enables the purchasing and selling of NFT assets.
- NFT Metadata: It contains information about the NFT assets kept in the marketplace. The description could include information like the object’s name, creation date, properties, real owner, etc.
- IPFS: IPFS stands for Interplanetary File System. A data storage system called IPFS is used to circumvent the energy-intensive storage of digital assets with information on the blockchain.
- Construct Smart Contracts: You should construct smart contracts at this time to launch transactions and mint NFTs automatically when sales requirements are satisfied. The creation of smart contracts is necessary for a number of reasons. They are first supported by their dependability and trustworthiness. The smart contract your design needs to be compatible with the tasks that your NFT marketplace is supposed to handle.
NFT Marketplace: Technology Stack
1. Blockchain Platforms:
- Ethereum: One of the most widely used platforms for developing non-fungible tokens or NFT markets is Ethereum. It is simpler to demonstrate ownership history on Ethereum because transaction history and token information are publicly verifiable. NFTs can be used with any Ethereum product because they all have the same backend. Furthermore, Ethereum seldom has a downturn, therefore tokens will always be offered for sale.
- Binance Smart Chain: This blockchain is compatible with the Ethereum Virtual Machine, it doesn’t require any additional programming work for smart contracts to function on both Ethereum and the Binance Smart Chain. is dependent on the Proof of Staked Authority (POSA) method, which offers cheaper transaction fees.
- Cardano: Uses the most energy-efficient blockchain network technology, proof-of-stake, which accounts for its cheap transaction fees. There are currently a number of NFT marketplaces based on the Cardano blockchain, even though Cardano only started to permit smart contracts in 2021.
- Polygon: Polygon provides programmers with a framework for developing scaling solutions and blockchain networks that are compatible with the Ethereum ecosystem.
2. Storage Platforms:
- Filecoin: A decentralized storage network called Filecoin was created primarily to house important data, such as media files. Everything a developer needs to start using decentralized storage for NFTs is included in the storage platform. Truffle Suite launched NFT Development Template with Filecoin Box after learning about its advantages.
- Pinata: For managing and uploading files to IPFS, Pinata is another well-liked platform. It gives NFTs access to safe, verifiable files.
- IPFS: A peer-to-peer hypermedia protocol called IPFS is intended to enable decentralized storage of media material. Since the media file for NFTs cannot be kept on the blockchain itself, IPFS can hold all of that information.
3. Front-end Frameworks:
- React JS
- Angular JS
- Vue JS
4. NFT Standards:
Must-Includes Features of an NFT Marketplace
A digital store has comparable principles to an NFT marketplace. It needs an eye-catching, simple-to-navigate storefront. The amount of data to display for each file must be chosen by the administrator. Buyers of NFTs will have similar interests in the origin and legitimacy of the papers as collectors of physical art.
They also have to give information on how uncommon each of their NFTs is. Artists may publish numerous NFTs of the same work, but you cannot replicate a private NFT.
Your search procedure will be made easier by the website’s filtering feature. The products might be separated into a number of categories, each with prices to help shoppers decide. Hot offers, the most popular, and other recent site additions are also potential filter possibilities.
People always look for secure locations to keep their NFTs. Nothing more than the creation of a wallet can allay their security worries. Because of this, NFT marketplaces first decided to incorporate wallets for storing and submitting tokens.
Instead of signing up for other online wallets, users can also easily sign up with their favorite wallet. Additionally, employ the safest ways to send, receive, and keep tokens.
- Listing Information:
Each person involved in the NFT marketplace transaction needs information about the procedure. Along with the bids placed in an auction, the marketplace will inform sellers and purchasers of the percentage of people who have viewed the file.
When users make an offer, the file can notify them. Before making a purchase, buyers should be informed that the file will go through a carefully designed verification process. Collectors are drawn to products that are more genuine.
- Search Options:
The NFT marketplace has to include a robust, feature-rich search engine that works well and enables users to quickly look for their favorite NFTs in relation to music, video images, art memes, gaming characters, and much more. The search engine will have the ability to recognize the user’s intention and goal in order to display the appropriate information in real-time.
- Buying and Bid:
Users must be able to purchase and submit bids on NFTs posted on the NFT marketplace platform. Users should be able to read information about the status of the bids and the bids should have an expiration date.
Estimate Cost to Build an NFT Marketplace
The cost to build an NFT marketplace can vary depending on the features & functionalities you require to match your business demands, ranging from $50,000 to $500,000 in total.
Custom NFT Marketplace Development surely costs more as everything is built from scratch. Thus, the number of development hours is high.
Therefore, it’s really wise to go for a White Label NFT Marketplace as it’s both time and cost-efficient option.
Need more details on What is a White Label NFT Marketplace & How to Build One? Check out this video: