Understanding the Technical Aspects of Developing an NFT Marketplace

Developing an NFT Marketplace

Non-fungible tokens have become invaluable assets as they simultaneously offer utility and speculatory possibilities. Their market started growing once tech-savvy enthusiasts saw potential in them, and that has been increasing since then. Developing an NFT marketplace might have been one of the turning points for the NFT market, as these tokens become more accessible through these platforms. In the years that followed, the market has skyrocketed to new levels, both in terms of utility and monetary value, with 2021 doing wonders. If you look forward to building such a platform, there are things you need to know, and we put them all for you.

NFT Marketplaces: A Refresher

We all know NFT marketplaces as hubs where people can create and trade NFT assets in exchange for cryptocurrency. The first platforms based on the model emerged around 2017, a few years after NFTs came into existence. Since then, it has been a mixed ride for these platforms, as their flow has depended on the larger crypto market so far.

If you ask, “What from here on?” the NFT market is projected to get less dependent on its crypto counterpart as the NFT market’s focus slowly moves toward utility from speculation. The first signs of such existence are already visible as optimism around NFTs surges.

Points to Remember While Developing an NFT Marketplace

While developing your NFT marketplace could sound like a nightmare from a distance, having the below points in your mind could be handy during the process.

• Ensure the platform uses blockchain technology to the fullest to ensure the authenticity and uniqueness of each NFT and peer-to-peer trades are conducted efficiently.
• Implement a robust and secure digital wallet system for users to store and manage their NFTs.
• Provide a user-friendly interface for browsing, buying, and selling NFTs.
• Ensure compliance with all relevant laws and regulations, particularly those related to digital assets and intellectual property.
• Provide a way for users to verify the authenticity of the NFTs they buy or sell.
• Have a legal support system in place to handle disputes and fraud.
• Provide a way for creators to mint and manage their own NFTs quickly on the marketplace.
• Consider integrating with other platforms and services, such as social media networks, gaming applications, and metaverse worlds, to increase the reach of your business.
• Have a clear and transparent fee structure for listing and selling NFTs.
• Continuously work on improving the user experience and finding ways to attract and retain users in the marketplace.

Process of Building an NFT Marketplace from the Ground Up

We know there are two ways to launch an NFT marketplace — A campaign from scratch and one from Whitelabel solutions. Although pre-made applications provide a fast way to launch marketplaces, the process is a derivative of a full-fledged campaign, whose steps we will see below:

• Research and Planning: Understand the market and competition, define the target audience, and create a clear roadmap of the features and functionalities of the NFT marketplace.
• Platform Development: Choose the blockchain(s) to build the platform, develop a user-friendly interface, and integrate a digital wallet system for storing and managing NFTs.
• Security and Compliance: Implement robust security measures to protect users’ information and assets, and ensure compliance with all relevant laws and regulations.
• NFT Minting and Management: Develop a system for creators to mint and manage their own NFTs on the marketplace, including a way for users to verify the authenticity of NFTs.
• Testing and Deployment: Test the platform for bugs and performance issues, and deploy it on the main blockchain network or cloud.
• Marketing and Promotion: Create a marketing strategy to promote the marketplace and attract users.
• User Acquisition and Retention: Continuously work on improving the user experience and finding ways to attract and retain users in the marketplace.
• Maintenance and Upgradation: Regularly monitor and update the platform to ensure its smooth functioning and improve performance.

Prominent Blockchains for Developing NFT Marketplace Platforms

There are several blockchain platforms that can be used for developing NFT marketplace platforms. The following are the popular networks where these platforms thrive:

• Ethereum: Ethereum is the most popular blockchain platform for NFT development. It supports the ERC-721 and ERC-1155 token standards that are commonly used for creating and managing NFTs.
• BNB Chain (Formerly Binance Smart Chain): BNB Chain is a high-performance blockchain that is faster and cheaper than Ethereum. It supports the BEP-721 standard, which is similar to ERC-721.
• Polygon (Formerly Matic): Polygon is a layer-2 scaling solution for Ethereum that aims to provide faster and cheaper transactions. It also supports the ERC-721 and ERC-1155 standards.
• Flow: Flow is a blockchain platform designed for developing and scaling decentralized apps, digital assets, and games. It also supports the creation and management of NFTs.
• TRON: TRON is a blockchain platform that supports high-throughput and low-cost transactions. It also supports the creation of NFTs with the TRC-721 standard.
• Solana: Solana is a high-performance blockchain that can handle high throughput and low-latency transactions. It also supports the creation of NFTs.

Ultimately, the choice of blockchain will depend on your specific needs, such as scalability, cost, and community support. With the increased awareness of multi-chain and cross-chain functionalities, you might be tempted to build your marketplace on many blockchains for huge returns.

In Conclusion

We can say that developing an NFT marketplace could be perfect for entrepreneurs wanting to make the most hay while the sun shines. While you could do it all yourself, we recommend working with an experienced provider of NFT marketplace development services for better results in the long run.