NFT Marketplace Development: A Step-by-Step Guide By Blockchainx
NFTs have become very popular in the art and collectibles world. Their potential extends beyond digital art. They can be used to buy digital lands, game items such as avatars, license and publish next-generation music, purchase event tickets and access limited edition digital products.
Global NFT market size will reach 5093.3 millions USD by 2028 from 1894.4 in 2021. It is expected to grow at a rate of 17.9 percent CAGR between 2022–2028.
NFT-based markets have popped up all over the cryptosphere and are now ubiquitous.
Companies are looking for ways to interact with NFTs in response to such a multi fold increase.
What is a NFT in Crypto?
NFT stands for non-fungible token. It is a digital token on a Blockchain with a unique identification number that helps maintain its uniqueness. NFTs are also unique in that they cannot be duplicated or altered.
NFTs use a similar type of programming to cryptocurrencies. Both are different.
Cryptocurrencies have the same value and are similar to each other. NFTs, however, are unique. There can only be one NFT at any time. If you have 50 Ethereum tokens, they will all be the same. However, if there are 50 CryptoKitties, each one will be unique.
In other words, NFTs are real-world assets such as real estate, artwork, gaming assets and gaming assets. However, they do not have a physical form. Tokenizing these items makes it easier to buy, sell and trade them while reducing the likelihood of fraud.
NFT
The blockchain is used to manage NFTs. Consider using the Ethereum Blockchain, one of the most popular for non-fungible tokens.
These blockchains act as a decentralized ledger, which can track the ownership and transactions history of each NFT. The code and unique ID of each NFT ensure that no other tokens can be duplicated.
Next, you will need to purchase cryptocurrencies like ether (ETH), and store them on a Trezor or Electrum wallet.
The OpenSea Platform or SuperRare are two examples of NFT platforms or marketplaces where users can create and sell digital assets.
These are some interesting NFT statistics you should know.
The NFT market will be worth 100 million dollars in 2020. By mid-2022 this market will have grown by 30x, to 3 billion dollars.
The Merge NFT is the most expensive NFT sold at 91.8 million USD.NFTs are collected by 23% of American millennials. OpenSea is used by approximately 2,50,000 users who trade NFTs each month.
What is a NFT Marketplace and how does it work?
You cannot directly trade NFTs like you can with Bitcoins or any other fungible tokens. To trade NFTs, you will need to use a platform called NFT Marketplace.
NFT marketplaces can be defined as virtual shops or online spaces that allow users to buy and sell NFTs.
NFT markets can be called the “Amazon” of the crypto-world.
Users can create an account and upload digital artworks, or other assets. They can also mak purchases or sales. The digital assets or tokens are easily available to purchase, auction and sell at a set price. To store and trade NFT tokens on the NFT market, you will need crypto wallets.
NFT Marketplace Benefits
Here’s why NFT marketplaces are the best option for online trading and why you should use them.
1.Transparency
The traditional marketplaces are unable to build the trust necessary for business transactions.
The blockchain technology, on which NFTs rely, ensures that all NFT transactions will be visible to their users. This increases trust in a distributed database by offering users error-free payments and a seamless transaction experience.
2. Security Increased
Blockchain secures all transactions in the NFT market. Enjoy the security of high-quality transactions. You are protected from loss, and no one can steal your digital assets.
Due to the immutability of blockchain, your assets cannot be altered or removed from it.
3. Liquidity
There is an increasing demand for NFTs and cryptocurrencies. In addition, decentralisation makes people actively invest in digital assets. We see an increase in liquidity of the NFT as a result.
The built-in features of NFT markets ensure that NFTs can be easily traded/exchanged for other assets. You can convert your NFTs to other assets quickly and easily without having to wait for buyers.
4. Easy Asset Transfer
NFT Marketplace allows you to have an original item, and provides a built-in authenticity for proof of ownership.
You can also tokenize assets and sell them on the NFT market.
5. Decentralization
A decentralized platform is the key to building an NFT market. Users can trade assets freely without relying on traditional financial institutions or regulators. Blockchain technology makes this possible.
6. Instant Payments
The NFT marketplace does not ask for any personal details or credit card information from the user to make transactions and payments. Instant payments are now hassle-free, fast, and secure.
7. Reduced fees
NFT marketplaces have lower fees than traditional markets.They do not require a third-party or agent to facilitate transactions.
8. Greater Independence
The same rules and regulations that apply to traditional online marketplaces don’t apply to NFT marketplaces. This gives users flexibility and freedom in buying, selling and trading digital assets.
9. Growth Potential
The NFT market is in a great position to attract investors from around the world, thanks to the hype that surrounds NFTs. This can help to accelerate its growth.
10. Traceability
The NFT market is based on blockchain technology which allows you to trace and verify ownership of NFTs.
The traceability feature allows users to verify the uniqueness and value of NFTs. It is through NFTs that many celebrities and fashion brands can sell millions in value.
NFT Marketplace Must-Have Features
NFT Marketplace Features
Make sure that your NFT platform has all the features necessary to ensure the smooth operation of the market.
1. Storefront
Storefront is a feature that most NFT marketplaces offer. It functions as a dashboard. The storefront feature is designed to attract users by providing all the necessary information about the NFT, including its owners, bidding, transactions, previews and price history.
2. Advanced Token Search
This feature allows users to easily search available NFT assets according to their preferences. To do this, assets must be sorted by different categories. (For instance, memes and pictures, videos, music or art). This feature is great for improving the user’s experience.
3. NFT Rankings
The traders can write reviews and rate the NFTs based on their price, volume of trading, and other factors. This allows other users to learn more about the NFTs’ ratings and standards.
4. NFT Listings
Users (creators), who are registered on the platform, can list their assets. Customers can then sort assets by various parameters.
The creators can include the cost of their NFTs in their descriptions.
5. Listing Status
It is important to have a listing status if you are a NFT product provider and have passed their authentication process. It helps to execute NFT verification by tracking the status of the confirmation process.
6. Crypto Wallet Integration
Your NFT platform must allow the integration of a crypto wallet to store and trade NFTs.
7. Selling and Auctioning
Biddings increase your chances of selling and earning the highest price. Your marketplace should therefore offer users real-time bidding for NFT assets. The highest bidder will be the owner of the digital asset at the end.
How to create an NFT marketplace
You must take the following steps if you plan to build an NFT market for your business:
1. Focus On Your Niche
Your custom NFT market design should first fit the niche you have chosen.This could be digital artwork, a game, sports memorabilia or other collectibles. It might even be a soundtrack.
If you optimize your NFT platform layout to meet the needs of your target audience, then you’ll be in a much better position to increase traffic and your customer base.
2. Choose the Right Blockchain Network
Blockchain Network We all know that a blockchain database is a distributed database which keeps track of NFT transactions.
NFT creators can use NFT marketplaces or platforms to sell NFTs, and earn royalties. Other users also use NFT platforms for buying, storing, and reselling NFTs. All of these NFT market transactions are recorded in the blockchains.
NFT marketplaces require robust, secure and scalable blockchain networks. The first step in developing an NFT platform is choosing the right blockchain network.
Blockchains such as Ethereum, Polkadot Stellar Tezos and others are some of the most popular blockchain networks. Ethereum is the most popular of all these blockchain networks.
Before choosing a blockchain, you can consider the following factors.
- Cost of NFT and transaction
- Robustness and robustness of smart contracts
- What is the fork-proof status of the blockchain?
- Transaction speed
3. Select the Top Features and Advanced Technology
Make sure to optimize the functionality of your NFT platform by implementing all its top features.
Unique features can differentiate your NFT Marketplace Development platform from similar platforms, and increase its value in the industry. You must carefully consider what functionality you will implement when building your NFT market.
Be very specific in your requirements for the project. Use a variety of options to add the mandatory features.
4. Create an intuitive user interface
A simple, engaging interface that is intuitive and easy to use will make your NFT platform a success. It is essential to have a secure, bug-free NFT trading platform.
A great UI will also make a positive impression on your NFT marketplace.
The trick is to make it look good, be simple, easy to use, and have all the features displayed as clearly as possible.
You can include tutorials and signposts in your intuitive user interface to help new users.
5. Build IPFS & Database storage
Next, you need to create an immutable database that is secure.
This database contains all sensitive and private information about the admin and user profile.The database contains information about the NFTs. The IPFS or Interplanetary File System stores and shares data through distributed databases and files.
IPFS enables NFTs in any format or size to present data in a distributed and secure way that will stand the test time.
6. Integrate other Third-Party Services
The NFT market must be integrated with social media, email, and crypto wallets.If you are unsure, check if this is all that’s needed or if the platform needs more integration. It all depends on what you need for your business.
7. Build Smart Contracts
You should now build smart contracts that will automatically mint NFTs and initiate transactions when the sales conditions are met.Smart contracts are necessary for several reasons. They are first and foremost backed by reliability and trustworthiness.
Your smart contract must align with the functionality that your NFT market intends to provide.
8. Testing and Deploying
Errors and bugs tend to ruin the user’s experience. Testing is therefore a critical phase to ensure a smooth user experience.
You can test your NFT platform on various parameters as soon as it is ready to use. You can use quality testers to test your NFT platform’s usability, functionality and other aspects.
The product has been thoroughly tested and is ready to launch. It eliminates all real-time loopholes and discrepancies, both expected and unanticipated.
Create a powerful NFT marketplace with Blockchainx
The NFT buzz is not over. This domain is attracting more and more celebrities, entrepreneurs, businesses and individuals every day.
Imaginovation is ready to assist you if you want to create a strong NFT market. We will work with you to brainstorm your topic idea and create a unique and stunning NFT Marketplace Development solution. Blockchainx, an award-winning mobile and web app development company, has a wealth of experience in creating digital success stories.
