Non-Fungible Tokens (NFTs) are an advancement in the cryptocurrency space and a step forward in the reinvention of modern finance and other industries. Money is fungible because there is no variation between one and another. Shares or stocks of the same type and quality from the same company are often interchangeable. However, because NFTs are non-fungible, they represent unique physical and digital assets such as artwork, songs, and in-game collectibles that cannot be replaced by other NFTs, and could be traded using fiat currencies. Each non-fungible token is recorded on the blockchain and has metadata and a unique identifier, making the NFT non-interchangeable and non-equivalent.
Here’s an article to gain insights into NFT marketplace platform development.
What is an NFT?
Non-Fungible Tokens are digital assets that can be in the form of physical or digital items, such as works of art, real estate, music, or videos. NFTs are considered modern-day collectibles. NFTs are created using the same technology involved in cryptocurrencies.
Types of NFT marketplaces:
There are two major types of NFT marketplace, including the following.
1. Open type marketplace where all types of NFTs can be traded.
2. Exclusive-type marketplace where a selected type of NFT can be traded.
Examples of some popularly available digital collectibles:
- Artworks
- Collectibles like Pokemon cards, vintage toys, etc.
- Sports Memorabilia like a video clip of memorable sports moments.
- Video-Game Assets, where the players get digital assets as rewards
- Memes
Technical Aspects Of NFT Marketplace Platform Development
To better understand the NFT marketplace, let us see about a few technical things involved in NFT Marketplace Development.
Digital wallet
A digital wallet is the main unit without which a buyer or seller cannot trade digital collectibles on the platform. Some platforms provide an in-built wallet, where they can easily store their cryptocurrencies. At the same time, some platforms require users to sign up for any wallet available in the marketplace and sync that with the marketplace they use.
Smart contract
A smart contract is a Pre-designed software that has a set of conditions regarding the trading of digital collectibles. It is an automatic executing algorithm that will be initiated the very moment a trade happens on the platform. In other words, Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met.
Auction
The auction takes place on the platform, where the digital collectibles are minted and listed on the platform to get exposure. Buyers will take part in auctions, bid a price, and win the auction. Few NFTs can also be listed at fixed prices by the NFT creators.
Gas fees
Storing the digital asset on the blockchain along with its properties is called minting, and the fees charged for this process are gas fees. The blockchain network requires gas fees for performing the minting process, and the creator has to pay for it. Gas fees are usually paid in the form of Ethereum tokens (ETH).
Prominent features an NFT marketplace should contain.
Storefront
An NFT marketplace is similar to other e-commerce sites like Amazon and eBay. It requires a front-end store that is attractive and easy to use. A storefront should contain information about the NFTs listed on the site and the seller’s info. It is a very important feature where the users can get to know the authenticity of their files.
Search bars
A search bar helps users to find the tokens of interest quickly and helps with faster checkout during an auction or sale time. A speedy and hassle-free search improves customer satisfaction.
Advanced Filter
This feature enables users to filter out the NFT based on categories such as price, rarity, creators, asset popularity, new offers, etc. As a result, the buyers will be able to find their desired NFT quickly and effortlessly, which in turn increases the chance of buying the asset.
Listing
This feature lets users create listings; for example, a user can have all their favorite NFTs in a wishlist. Similarly, this listing option allows the creators to list their digital collectibles to the buyer.
Buying and Bidding
A marketplace is incomplete without this option. It allows buyers to bid and purchase an NFT easily.
Wallet
Having an inbuilt wallet would be an add-on advantage as buyers need not worry about the security of their crypto wallets. The platform should accept payments from multiple cryptocurrencies like Ethereum, Bitcoin, etc.
Ratings
This tool benefits both buyers and sellers. Based on the platform rating, people would choose which is best for them. People prefer to do business with those who have a good reputation.
The steps for creating your own NFT marketplace solution are as follows:
Define your niche
The first step is to determine whether your market is universal or niche. A better option is to list various types of NFTs, which will attract a larger audience.
Choose your Blockchain
Choose the blockchain on which your marketplace will be built. Ethereum and Binance Smart Chain are two of the most popular blockchains. You can also build your platform to support multiple blockchains at the same time.
Determine your project’s UI/UX design
You can consider NFT marketplace design after deciding on a blockchain and a niche. Make sure your user interface is simple and easy to use.
Implement smart contracts
The next step is to develop smart contracts for the marketplace. To do that, you need to hire professionals who understand regulatory requirements.
Secure storage
This step requires NFT creators and buyers to decide where to keep their assets. Additionally, you must ensure that records of all transactions are stored securely on the platform.
Integrate Third-party services
Building a successful NFT marketplace requires integrating payment gateways, crypto wallets, social media, and email services. These are the basic third-party tools, but you may need more. The number of integrations varies according to your business needs.
Test your marketplace
After developing a basic version of the NFT Marketplace, testing is done. In this way, we fix all the flaws of the platform and complete the product.
Conclusion:
The NFT resurgence continues to spread despite the volatile crypto market. This is the right time for you to dive into this field of digital assets. An NFT marketplace website development specialist can help you create a thriving custom NFT marketplace and bring your dreams to reality.
