The non-fungible tokens or NFT marketplace is a blockchain-based online platform to sell and buy cryptos.
In the last few years, It is a buzzword among people and on the internet.
As per a report by Statista, the NFT segment is to grow by 27.26% (2022-2027).
Looking at the above figures, you can imagine its popularity. As per the record, the NFT’s weekly sales volume has gone from 100 sales in 2017 to 50,000 in 2022.
In response to this mounting popularity of non-fungible tokens, brands such as McDonald’s, Gucci, and Coca-Cola began to produce products using NFTs.
The trend of NFT has already gained widespread acceptance. An increasing number of investment influencers and the emergence of new gaming communities are explaining this trend.
However, this niche is challenging since there are a lot of NFT marketplaces. Usually, people interested in NFT trade often get confused about how to create an NFT marketplace and make it a profitable business.
Keeping you in mind, we have discussed a step-by-step guide on NFT marketplace development in this blog.
Whether you are a crypto enthusiast or planning to build your crypto marketplace, this blog will help you.
Before moving ahead, let’s understand about NFT marketplace.
What is the NFT marketplace?
The NFT marketplace is an e-commerce platform where users can purchase and sell various creativities, collectables, and other digital assets.
It is a unique way to sell your works of art anonymously and can set your price and sale period. Moreover, you can access many features like tagging, categorization, monetization and more.
The assets are based on blockchain technology, particularly Ethereum, and are named non-fungible tokens.
Types of NFT marketplace:
It is classified into three specific categories.
(a) Exclusive NFT Marketplace:
The Exclusive NFT Marketplace allows the purchase and trading of unique NFTs, which are usually limited edition prints or small quantities of artwork. As a result, NFT has an extremely high value in such marketplaces.
(b) General NFT Marketplace:
It is the platform for most of the NFTs. Different types of NFTs based on their styles, quantities, prices, and features, can be created and sold on this market. It is one of the popular marketplaces that have the highest trading volume as it fulfils the needs of the maximum users.
(c) Specific Marketplace:
It is a marketplace for a particular segment. It is easier and more convenient for users to trade assets on a specific NFT marketplace. Even It enables users to keep track of market fluctuations and respond more quickly.
How do NFT marketplaces work?
Let’s take a look at the NFT marketplace workflow works. Whenever a user buys or sells some NFTs, it gets records on its blockchain and changes ownership.
The first step to start selling or buying on an NFT platform user need to register an account and set up and connect a crypto wallet. The sign-up processes may vary from site to site.
The majority of NFTs are bought directly or at auction for a fixed price. Sometimes, prospective buyers can submit offers to the owner and try to negotiate a better price.
Compared to buying, the process of selling unique digital assets is complicated. If a user trying to sell something they need to follow these steps.
- Upload the selected digital asset to the marketplace and enter a fixed price or opt to auction the NFT.
- Once the platform verifies and approves the asset, it will be listed for sale.
- After a bid is accepted, the marketplace transfers funds from the buyer to the seller.
If a user wants to purchase, sell, or trade NFTs, they must have crypto in their wallets. It is because Blockchain networks require a lot of processing and energy. The payments network operators receive are called fees or gas.
How to build an NFT Marketplace?
Before start building your own NFT marketplace, it is crucial to research and decide about your offerings that will make you different from others.
Finding your niche can help you reach a prospective audience. It is vital to have a clear objective in mind here. When feeling confident about your offering, you can start implementing it.
Step-1: Choose a Blockchain Architecture:
You need to determine which blockchain you want to use for your new NFT marketplace. There are many blockchains out there and each has its strengths and weaknesses.
The key is that you need to select a blockchain that is more scalable than Ethereum, but also easy to integrate into other existing technologies like Stripe and Coinbase.
Step 2: Choose your Market:
Creators need to decide if they want an open or closed NFT marketplace.
A closed NFT marketplace will utilize a specific proprietary token. Additionally, this marketplace has no competitors. It means it is more secure as there are few parties involved in making transactions, which leads to more trust between brands and consumers.
An open marketplace supports a wide variety of tokens. OpenSea is the leading marketplace for NFTs, as it supports more than 150 types of payment tokens.
Step 3: Identify your style:
The front end of your blockchain project should be designed to be both professional and user-friendly.
From the UI/UX perspective, it’s important to have a working product before you go any further with development.
It includes researching how people will interact with your marketplace. What features are they looking for, and How do they want to buy or sell an item? What information will they expect to see on their dashboard?
Step 4: Set a commission rate:
Deciding on a commission fee for your marketplace is a big decision, especially if it’s one of the first steps in your NFT project.
A common setup for charging fees for marketing and transactional services is to make all transactions free at first and determine what you will charge later on.
This means having a volume-based sale, where the price per transaction goes up over time as more users join and use the service.
Step 5: Join or create your community:
As a first-time marketplace, you’ll want to make sure you have a tight network of buyers and sellers who are interested in your artwork.
Once you’re live with your new marketplace, it can be tempting to simply grant users access rights to see your artwork and shop.
The beauty of cryptocurrency is that there’s value in building an active community and connecting with people across the globe — this makes having access to customers even more critical.
Types of NFTs You Can List on Your Marketplace?
Non-fungible tokens are digital assets, which represent a specific item. The most popular uses of them include collectables and virtual items, as well as actual goods. Just like physical items, these tokens may have one or more attributes — for example, limited edition art pieces or premium clothing — that define their unique characteristics.
Using NFTs in the gaming industry, users can acquire in-game assets. As soon as these assets are created, either they can be used in the game or they can be sold.
NFT is another type that tokenizes real estate and virtual lands. As a result, conflicts over land ownership can be avoided.
By using NFTs, authors can fight piracy and earn income from their compositions.
Benefits of NFT Marketplace:
Advanced Security: By using blockchain technology, NFT marketplaces are more secure and transparent than traditional online marketplaces.
Low fee: The fees charged by NFT marketplaces are typically lower than those charged by traditional online marketplaces.
Increased liquidity: Most NFT marketplaces offer built-in liquidity mechanisms that allow for the easy trade or exchange of NFTs for other assets.
Features of the NFT marketplace:
Storefront: The storefront is the most important part of your marketplace. You can find here all the information you need, from offers to a detailed description of each NFT and its owners, to rates and price history.
Advanced Token Search: It is an essential feature if you are developing an NFT marketplace app. Your users will find this feature useful if they need to find a token quickly.
Filters: The filters perform a similar function to the advanced token search, but they encompass a wider range of categories. You can use this tool to identify NFTs to a greater extent than just their type.
Wallet: This is one of the most important features of the NFT platform. The marketplace would be better if it also had a wallet.
How can we help you?
As a digital transformation company, we have expertise in blockchain development and building the NFT marketplace.
If you are keeping interested in the NFT platform or wants to start your startup related to NFT, then our experts will happy to help you.
Along with the development, we have an excellent marketing team who can assist you with the marketing strategies for your business.
It is a recognized fact that building a successful marketplace is not an easy task. It requires the right skill, adequate experience and continuous research.
There are a lot of benefits that you can get from having a central marketplace for all NFTs. Transactions will be secure and transparent with underlying smart contracts powered by blockchain technology.
Users will have full control over their identity and provenance information. There is a high potential for cross-marketplace transactions where the seller keeps the same buyer pool across marketplaces.
And, finally, centralized marketplaces will help to build trading hubs on top of the decentralized networks that they support.