When non-fungible tokens (NFTs) first burst into the blockchain scene, the erstwhile blockchain world was struggling with some of the biggest cryptocurrency exchanges getting hacked. Such events meant that the reputation of blockchain technology had been tarnished to an extent at that time. Yet, these digital tokens that provided proof of ownership and authenticity to the assets they backed – digital or physical meant that the blockchain world had something to hope for.
Nevertheless, cryptocurrencies and NFTs have continued exciting and gathering a huge global community of enthusiasts. The true colors of NFTs went live in 2021 when their sales exploded to never-seen proportions, with people (particularly digital art collectors) buying JPEGs and GIFs for millions of dollars worth of cryptocurrency. While the NFT boom was mostly credited to creators and celebrities, NFT marketplaces had their role too by facilitating every single trade through their software. In this blog, we will see more about NFT marketplace platforms and find out why such a business would never fail to perform.
An Introduction to an NFT Marketplace
An NFT marketplace is a portal where users can buy/sell items backed by non-fungible tokens. These platforms are present on every blockchain since they bring businesses/creators and customers/fans closer. While some NFT marketplaces concentrate on horizontal trading (Examples: Opensea, Rarible, and Solsea), others concentrate on serving a vertical user base (Examples: SuperRare, Sorare, Decentraland, and NBA Top Shot). NFT marketplaces sell assets such as artworks, music numbers, videos, in-game items, and plots in metaverses. The current payment gateways include cryptocurrencies, stable coins, and fiat transfers, although the latter two are not very common.
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How Does an NFT Marketplace Platform Work?
- Users (buyers/sellers) create their accounts on the marketplace and link their crypto wallets.
- Sellers create NFTs for their products, provide the necessary information, and send them for moderation.
- Admins moderate and accept the listing if the NFTs satisfy all their conditions.
- Potential buyers can see the NFT items and place a bid or offer the fixed price after seeing all the provided information. The cost to be paid is taken from their wallet and held.
- If the seller likes the offer or the deadline is reached, they can accept the bid, and NFTs are transferred to the buyer. Seller receives the payment cost.
Important Features of an NFT Marketplace
- Shopfront – It shows all the details of an NFT item, including descriptive details, cost, and mode of sale.
- Search and Filter – These options help users find their favorite NFT products through a sophisticatedly programmed engine.
- Listing Portal – It helps sellers list their NFT items for sale by allowing them to provide the necessary information.
- Bidding Portal – It helps buyers place bids and know the current status of the NFT item’s sale.
- Crypto Wallet – It helps users in storing their cryptocurrency and NFT items.
- Ratings and Reviews – These options help new users on the NFT marketplace to know about well-performing NFT collections.
Developing an NFT Marketplace – A Brief Guide
- Plan for the NFT marketplace platform as the first step. Your project must include business opportunities, target niche, competitors, the technology behind the software, and more.
- Then, work on the front-end in your NFT marketplace development by building user interface (UI) screens that provide an immersive user experience (UX).
- Proceed with back-end work in NFT marketplace development. Here you create features related to the platform’s functionality and blockchain integration.
- Develop the smart contracts and native tokens for the platform as per your needs.
- Test the NFT marketplace platform in-depth for bugs and resolve errors when found. Use multiple test cases to ensure that the NFT marketplace works flawlessly.
- Finally, launch the NFT marketplace platform for trading operations. Get user feedback and release upgrades with time to keep up to date.
Prominent Advantages of NFT Marketplace Development
- Developing an NFT marketplace gets you a user base around your business, irrespective of the nature of your business (horizontal/vertical).
- Also, NFT marketplace development proves advantageous for different end-users (artists, businesses, fans, and customers) by bridging the gap between them in trading.
- Developing an NFT marketplace also eases the barriers for aspiring NFT creators and collectors as bigger things typically have humble beginnings.
- Additionally, an NFT marketplace can benefit a business by creating an enthusiastic community around the platform. This can even lead to the formation of a decentralized autonomous organization (DAO) where everything is based on the community’s decisions.
An Overview of Multi-chain and Cross-chain NFT Marketplaces
In the current time where worldwide sales of NFT items are exploding, an NFT marketplace platform in a single blockchain is not a great option if you want to achieve huge success. Such thoughts have given rise to the development of multi-chain and cross-chain NFT marketplaces.
- Multi-chain NFT marketplaces work as separate portals for every blockchain. This feature helps greatly when users decide to explore a new blockchain network, and some degree of uniformity can help them adapt better to the environment.
- Cross-chain NFT marketplaces are portals that work as a single entity with branches in different blockchains. Here, you can seamlessly scroll through multiple blockchain pages from a single homepage. This helps gather a big community that looks to use other blockchains effectively.
Why Would Not an NFT Marketplace Business Fail to Perform?
Although NFT marketplaces work similarly to today’s e-commerce websites, they sell entirely different items. As the enthusiasm around NFTs grows every day, the community also grows in size and stature. Such growth marks the requirement for new NFT items, and sellers/creators need platforms to show their talent in the virtual world. Such necessity makes developing an NFT marketplace a business that can work under any conditions in the unstable crypto world. NFT marketplaces are needed to close the void between the end-users and make NFTs a retail affair, which also means the business cannot fail to perform in any sense.
Hence, we can say that with the advantages and the strategic position that NFT marketplaces lie in the crypto spectrum, one cannot simply rule them out, even if the sale of NFTs goes below a normal range. Such benefits can make you think that NFT marketplaces are here to stay, and the statement is right indeed. If you want to build a business based on an NFT marketplace platform, there are a few firms that can assist you in realizing your plans without taking much of your time and wealth.