Saffic is a content writer who is interested in the Internet 3.0 and virtual worlds.
NFT marketplace development is all the rage as they provide diversified benefits for investors, content creators, artists, and NFT marketplace owners. Storing the money in the wallet or exchanging it doesn’t yield any profit. Money is a fungible good, which means it can either be replaced or traded for one another equivalently but the value remains the same.
The same applies to the shares of any company; regardless of the stock exchange from which you buy a share, the value remains the same and is set by the market. In the case of non-fungible tokens, the name itself suggests that the NFT assets are a non-fungible entity, which means if you exchange NFT for another, then the one you received has a different value from the one you gave away.
In this article, let’s do a deep analysis of what is an NFT marketplace, how it works, and how to create an NFT marketplace on your own.
What Is an NFT?
- Non-fungible tokens (NFTs) are cryptographic tokens that help to prove the ownership or authority over any digital asset and real-world objects
- Each NFT has unique metadata and identification codes which makes them non-equivalent and they cannot be traded or exchanged as each one has a different value
- NFTs are based on blockchain technology which helps to validate & verify the trading and also track & identify the transfer of ownership
- The users can tokenize real-world objects like artwork, music, images, videos, collectibles, real estate properties and also virtual in-game items, digital avatars, and many more
What Is NFT Marketplace?
- NFT marketplace is a digital platform or a website built on blockchain technology where the users can buy, store and sell NFTs for a fixed price directly or through bidding at an auction
- NFT marketplaces generate NFTs using smart contracts and add the non-fungible token to a data form called Metadata
- Integrating a crypto wallet is essential for buying, selling, and storing digital assets, as the transactions take place through the digital wallet
How Does NFT Marketplace Work?
Before creating an NFT marketplace, you should understand how the NFT marketplace works:
- Users should create an account to login into the NFT marketplace, then they can integrate their existing digital wallet or download a new wallet to store their NFTs
- In the marketplace, the seller needs to create the NFTs for the digital assets that need to be sold
- Then the seller should list their assets in the platform and also can set a price for the bidding or a fixed price for direct selling as per the available options in the marketplace
- The buyer needs to transfer the desired amount to the seller’s wallet at the time a private transaction smart contract gets started
- To transfer the authority or ownership of the NFT, both the seller and the buyer need to agree with the smart contracts and sign the documents digitally
- When the trading takes place on any assets then the change of ownership records in the blockchain technology
Types of NFT Marketplace Platforms
The trading of NFTs varies from one platform to another. There are two main types of marketplaces to sell or buy NFTs.
These kinds of marketplaces are similar to e-commerce sites where the users can find a diverse range of NFTs collections like artworks, domain names, games collectibles, real estate properties, etc. to buy. Universal marketplaces don’t focus on any particular or specific group of NFTs or users. It helps to attract a large group of users of varying interests.
Niche marketplaces are the platforms for exclusive NFTs which focus mainly on rare and specific NFTs. This type of marketplace attracts more users with particular interests. There are some marketplaces that focus only on digital artworks, where you can find various artworks from different leading artists.
How to Create an NFT Marketplace
Follow the steps to create your own NFT marketplace.
Step 1: Research
The first and foremost step is to conduct market research before creating an NFT marketplace. By doing research, you can avoid any conflicts in prior and also customize the platform as per your business needs. It helps you to analyze the desired intent of the users and display the exact information as per their objectives. Create an NFT marketplace with the feature of recording, storing, and showcasing the intact information of the user on the platform.
Step 2: Product Discovery
Creating an NFT marketplace with compelling features and extreme goals is essential to provide a secure and immersive experience for users. It is important to identify the target market and audience to create a personalized NFT marketplace. NFT marketplaces have different niches decide a niche for your NFT marketplace development. During the product discovery stage, analyze different features to incorporate into the development process for a better experience.
Step 3: Choose a Blockchain Architecture
Choose an optimal blockchain architecture as per your unique business requirements. Selecting the blockchain ecosystem will impact the entire functionality of your NFT marketplace. You can have a wide range of choices in blockchain ecosystems, choose the one that supports the smart contract as all the business operations of the NFT marketplace relies on smart contracts. Even though Ethereum is the most familiar, you can also choose from alternate blockchains as Ethereum charges high transaction fees.
Step 4: Create Smart Contracts
Various functions of the NFT marketplaces are created on different smart contracts. From listing to trading of NFTs, all the functions in the marketplace work on the smart contract. It is important to develop smart contracts to carry out various operations like monitoring transactions, auctions, validating & verifying the ownership of NFTs, etc.
Step 5: User Interface Development
Appealing UI/UX designs are crucial for any NFT marketplace development. Responsive user interface design helps to attract more users. Create your own NFT marketplace with easy navigation across different platforms to provide an extraordinary user experience. Ensure the look and feel of the homepage that should be accessible and user-friendly.
Step 6: Crypto Wallet
As already mentioned above, every transaction in the NFT marketplace takes place through digital wallets where you can secure or store the NFTs. Integrating a crypto wallet with the NFT marketplace offers a seamless transaction for users. Sync your own crypto wallet with the NFT marketplace to ensure more data safety.
Step 7: Test and Deploy
The testing phase helps to analyze the quality, performance, and reliability of the product. It also helps to track and remove bugs and ensure system security before implementation. Finally, deploy the final product to the users to verify successful execution and correctness.
Expanding Growth Potential
This article helps you understand how to create an NFT marketplace on your own. While developing an NFT marketplace, you should also integrate various features like creating various crypto payment gateways, establishing security, developing a listing, searches and filters, shop windows, alerts, ratings & reviews, and customer support for exceptional user experience.
It is important to create an NFT marketplace with various features that attract more target audiences and also ensure high returns on investment of the solution. NFT marketplaces are already started to gain more momentum, in the future there will be more and more users and businesses will adopt NFT for its prequisites.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.