- Category: NFT Development
NFT marketplace development is still in a nascent stage, but it can potentially change the way we buy and sell digital assets forever. Here is a blog providing an overview of NFT marketplace development and a step-by-step guide on how to build one.
Since their debut, crypto enthusiasts have taken to NFTs like horses to water. The NFT market cap has been estimated to be worth $41 billion in 2021. Due to large sales volume and increasing demand for digital collectibles, the online NFT marketplaces have also seen both parallel and vertical growth. These virtual exchange platforms provide a secure and transparent channel for sellers and buyers alike. Currently, more and more people are looking to sell their digital assets; likewise, buyers of NFTs are looking to acquire them. This means there is a requirement for such virtual platforms. However, there are already a significant number of NFT marketplaces in the crypto domain. So why the need to build more of them? Through this blog, we will address this concern and, most importantly, how one can develop their own NFT marketplace. Let’s begin.
What is an NFT?
NFT, or non-fungible tokens, are digital assets of value created through smart contracts on the blockchain. NFTs, also known as digital collectibles, can be sold, bought, and traded on specialized online marketplaces. People who create these collectibles are referred to as NFT creators, and they hold copyright over them. Anything can be attributed to NFT-a music piece, digital art, an online game, patents, and even tweets. The possibilities are endless. These digital assets carry a unique signature that means they are not interchangeable and are one of a kind.
What exactly is an NFT Marketplace?
An NFT Marketplace is a decentralized exchange platform that facilitates the trading of NFT tokens. The idea behind an NFT marketplace is to create a secure and transparent network where users can trade their digital collectibles without the need for a middleman or an intermediary like eBay or Amazon.
Benefits of the NFT marketplace
The NFT marketplace comes with privileges such as:
* They provide liquidity for all the NFTs available in the market.
* NFT creators or owners can easily list their digital assets by creating an account, logging into the virtual exchange platform, listing their products at a fixed rate, and auctioning them off. Then, the buyers go through a similar process where they bid on the NFTs listed and buy them.
* Platform scarcity is another distinctive feature of NFTs as exchange platforms are developed in a manner that will allow fewer NFTs to be produced.
* The list-bid-sell-buy model has benefited NFT creators and buyers tremendously. These crypto-collectibles fetch a decent amount and have emerged as a reliable source of income for artists and developers alike. Also, payments are secured, quick, and hassle-free on the blockchain network.
* NFT Marketplaces are a great way to generate revenue, which can be done in two ways: by charging a transaction fee, also known as “gas,” or earning commission on every sale of NFT. For example, OpenSea has generated approximately $95 million in revenue from transactions worth $3.4 billion.
The need for new NFT Marketplces:
The NFT marketplace development is still in a nascent stage, but it can potentially change the way we buy and sell digital assets forever. It has also been seen that the Ethereum Blockchain has certain limitations concerning interoperability and high gas (transaction fee). These limitations have given scope for improvement and the deployment of new marketplaces free of these limitations. Also, the possibility of scalability is endless, and therefore, major businesses are showing keen interest in NFT exchange platform development. Top NFT developers are being hired to build new online marketplaces to facilitate more trade.
How to build an NFT marketplace
There are many NFT marketplaces already in existence. Some of the top exchange platforms are Opensea, Raible, Nifty Gateway, Axis Infinity, Decentraland, and many more. However, there is always a place for new players due to the scalability in terms of sales and trade owing to the constant demand for NFTs.
Also, as a new entrant, you may opt for a white-label NFT marketplace as you can launch your marketplace quickly and at an affordable price. Besides, you get the luxury of designing and developing your exchange platform as per your requirements.
Now you need to be aware that NFT marketplace development requires you to do all your “i”s and cross all your “t”s. The following are the variables involved when building your platform from the ground up.
- Identifying your forte: There is a demand for niche-based products and standardised NFTs. You need to identify and choose which type of NFT you would want to list in your marketplace. This step is the most crucial and essential before beginning the development process.
- Choose your blockchain: NFT tokens usually run on the Ethereum blockchain. However, there are other networks available, such as Flow, Tezos, Binance Smart Chain, Cardano, and a few others.
- NFT token standards: ERC-721 and ERC- 1155 are accepted standard tokens to create non-fungibles. Crypto enthusiasts continue to use ERC-721 tokens, but the latter is fast catching up. So, before creating your marketplace, consider incorporating either of these two standards.
- User interface design: It is essential to consider how you want your marketplace to look and feel, including the color palette, layout, typography, and so on. So, hiring a qualified Ui/Ux designer is another crucial factor to take note of.
- Back-end administrators: In addition to buyers and sellers, back-end executives play an important role in the smooth functioning of the exchange platform. Their job is to troubleshoot bugs and ensure the front-end runs without a hitch. So hiring qualified administrators should be your top priority.
- Pricing: The cost of developing a marketplace app or a website is determined by the following factors:
(a) The features that you intend to include in your marketplace
(b) Whether you want to build one yourself or have it developed by someone else.
(c) The level of security. The more security features are integrated, the more they increase the cost.
- Smart Contracts: Everything from the listing of products to the trading of NFTs is facilitated through smart contracts. Therefore, it is essential to develop a smart contract for the functioning of your platform.
- Storing and Integrating: Information regarding NFT Listing and Minting as well as user information needs to be stored in the IPFS, which is a P2P protocol for storing data. After configuring the storage feature, you’ll need to connect the front-end to the back-end.
- Testing and Deployment: The developed NFT Marketplace is now ready to be beta-tested. The bugs need to be plucked out by doing test runs and finally making your platform deployment ready.
Features that you should add to your marketplace to attract users and increase traffic to your platform:
- Shop-front: Adding a shopfront is a good idea as it will allow users to access information such as bid prices, NFT owners’ information, history pages, and so on.
- Digital Wallets: Both end users must own digital wallets to keepsake and trade NFTs. Therefore, it is imperative to either create a smart contract or amalgamate already existing wallets such as Coinbase, MathWallet, Meta Mask, and others onto the platform.
- Filters: Adding This feature will help users access information related to the NFTs listed on the platform. It is easier for them to search for a collectible based on price, category, payment mode, and similar criteria.
- Create Listing feature: This option is for the NFT creators and helps them add a meta description of the product they are putting up for auction.
- Listing status option: It will allow bidders to check the current status of the digital collectibles listed on your platform before bidding on them.
- Bidding/buying option: The two options will help buyers on your platform easily and quickly bid on and buy the listed collectibles.
- Reviews/Ratings: It is good to add rating and review options to add credibility to your platform for potential users.
- Enhanced token search: a must-have option that will give users instant access to the NFT creators and their listed digital assets without having to resort to time-consuming search.
Sofocle is the way to go
We at Sofocle are sitting at the apex of a technological explosion where cryptocurrencies are concerned. With more innovative NFTs on the way, the ever-increasing interest of crypto enthusiasts in digital assets, and the constant development of NFT marketplaces, the future looks bright, and the time is right. So, strike while the iron is hot, and Sofocle Technologies promises to provide you with the best tools to help you build an NFT exchange platform that matches your vision. When it comes to blockchain technology, we are well-versed and among the best. We believe in creating a marketplace that will ensure flawless transactions and an enhanced user experience by utilizing advanced technology and bringing in elite minds.
Please contact us if you have any questions about our services, and we will gladly answer them.