Nowadays, digitalization is on the boom. Many new concepts are emerging with time. One of the new concepts in the digital world is NFTs. Do you know what NFTs are and how they work?
NFTs (Non-Fungible Tokens) are basically digital works of art. It can be a painting, an audio file, a video, or an image. NFTs provide ownership of the work to a user who buys or sells them.
The NFT market has blown in such huge numbers that, in the current situation, it is valued at around $3.5 billion in total revenue with an almost 22% of growth rate. At this rate, it is predicted that by 2027 the market will reach its value of around $8 billion.
There are dedicated marketplaces for NFT trading. These marketplaces are based on the blockchain model. The marketplaces are associated with different blockchain platforms that provide them service of storing or transferring the data.
What is an NFT Marketplace?
NFT marketplace is a digital platform where one can trade NFT. whether it is buying or selling, a good marketplace tries to provide everyone with an excellent and smooth experience.
Whether it is from the seller’s point of view or from the buyer’s, a good marketplace should be the most smooth and interactive with the user. From the interface of the NFT marketplace to the NFT marketplace UX design, everything should be relevant and unique.
One more function of the marketplace is to mint the NFTs. Minting an NFT means publishing an art piece to the blockchain. This consists of all information about the NFT, including the artist’s name and some necessary files that you have to provide related to the art. Minting an NFT provides a new unique token. It determines what you made and what you made, and how you are going to sell it.
NFT marketplaces charge fees from both buyers and sellers. The rate of the fee varies from platform to platform. The transaction system majorly works on cryptocurrencies or credit cards. Some NFTs are sold at a fixed price, and some of them are set up for auctions where buyers bid for them.
Building an Effective NFT Marketplace
There are several aspects that can lead to the success or failure of your marketplace.
Some components and third-party services are used in designing the best and most effective marketplace. Let’s take a look at some of those major components and services.
- Clients and Server Side: The marketplace should provide an equally simple yet engaging place for both buyer and seller.
- Digital Wallet: Your platform should have almost all digital wallet options so that it would be easier for the users to trade on your platform. The process should be minimal and fast.
- Metadata: NFT metadata consists of the Artist’s name, NFT description, date created, etc. Basically, Metadata consists of the details of the NFT.
- Smart Contracts: Smart contracts are used by the marketplace because these contracts can activate or deactivate the NFTs. There can only be one owner of NFT at a time.
- Blockchain: Blockchain is a system that cannot be hacked and is the safest mode of storing data. Additionally, it is easy to transfer information through a blockchain system.
- Programming Language: various programming languages are used in the process of developing an NFT marketplace. For example, Golang and Solidity are the programming languages that are used in back-end development and smart contracts, respectively.
- Database/Cloud Database System: Databases and Cloud database systems are used by the marketplace to access the range of storage classes and different storage data volumes.
- Blockchain System: The blockchain alone is not sufficient for the functioning of the marketplace. There are multiple services used for different roles. For example, to access the blockchain or to track the transaction, there are different software used to perform each task.
- Price-Tracking Service: Programs like CoinMarketCap provide services to track the price of the transaction. This service is used by almost every NFT marketplace.
Important Features of NFT Marketplace
A marketplace presents the NFTs listed on its platform. To advertise and showcase the exclusive and exotic art pieces available on the platform. There are filters available for the buyers to filter their NFT search according to their needs and search.
A product page is set up for the NFT that describes all the details of the product. Also, some catalogs showcase their product range and collection.
NFT Buying and Selling
A good marketplace offers the availability of choices whether a person wants to sell a product at a fixed price or via an auction. The trading system of the marketplace should be flexible for either situation.
Marketplace charges fees from both buyer and seller. Fixed marketplace fees and royalty fees are charged from both buyer and seller, respectively, for every sale or purchase made.
User Account Management
Complete user authentication should be done with email, contact number, password, wallet details, and social media before signing up for the platform.
The user profiles should be original and not fake, with all the necessary information.
Complete management of content should be done with all the published information. Fast and automatic sales reports and receipts should be generated with marketplace profit.
An effective helpline system and contact options for the user.
Tips for a Successful NFT Marketplace
The very first step for a successful action is always planning. You must plan what kind of audience you are targeting and what is the basic motivation for building an NFT marketplace. Lay a strong foundation of thoughts and make your idea rock strong. Identify the risks and benefits that you may face in every situation. Having a roadmap toward the goal can help.
Diving deep means doing thorough research about the project. Ask yourself if you know all the needs and necessities of the project. Contact developers and technicians that are experienced in the field. Understanding the process is a critical requirement that you must fulfill.
Think Before you Act
Have a thought about whether it would be economically viable for you to invest in such a big project. Do not invest all your assets in the project. Take small steps and identify the risks and opportunities at every step. Gain your confidence, ask for feedback on your idea, and then take the decision.
By test drive, we mean taking a test of drafting a smart contact that can help you. Acknowledge all the possibilities and combinations that can lead to failing your smart contract.
Some Major NFT Marketplaces
Here are some prominent NFT marketplaces that are worth your consideration.
Rirable is one of the latest marketplaces that exist in trading NFTs. Rirable was launched in 2020, and it uses its official RARI currency, which was launched roughly one year later.
|Fees||1% from each side|
|Blockchains||Ethereum, Flow, ImmutableX, Polygon, Solana, Tezos|
|Niche||Gaming, Virtual Arts|
Rirable is best suitable for those who are into gaming or just enjoy collecting NFTs.
Binance is one of the world’s largest names in cryptocurrency. Binance debuted its new NFT marketplace in 2021. The buyers can get premium, and finest quality art pieces can trade smoothly with this trusted platform.
|Blockchains||Ethereum, BNB chains|
|Niche||Art, music, photography, collectibles, sports, virtual worlds|
Binance is a trusted and widely used platform. Its marketplace is not much different.
|Royalties||Based on Creator|
|Niche||Art, Collectables, Gaming|