Ever since blockchains emerged as an academic concept in the 1990s, they have been seen as a game-changer. Indeed, they changed how finance was perceived when first implemented via the legendary cryptocurrency Bitcoin. Suddenly people were excited about the possibility of digitizing life as we previously imagined it through literary content. Such a line of thinking has raised the standard and range of blockchain applications as time went on. Then gradually more applications related to cryptocurrencies started their activities.
Additionally, more blockchain-based applications such as non-tradable tokens (NFTs), decentralized finance (DeFi), metaverses, and decentralized autonomous organizations (DAOs) have been successful.
Non-tradable tokens in particular have attracted a large market after their sales skyrocketed over the months. While success has mainly been attributed to NFT early adopters, creators and celebrities, the real credit goes to NFT markets that have efficiently handled the spike.
Therefore, it can be said that an NFT marketplace business can be a great business opportunity in the current crypto world. But owning such a platform requires a great deal of care and patience, because building a community around your platform requires hard work, even from the very first step.
What is the NFT Marketplace Platform?
A NFT market It is a platform where people can buy, sell and trade assets backed by non-tradable tokens (NFTs). They play a close role in bringing NFTs to the levels they are today. All kinds of NFT assets can be found on these platforms, such as art, music, video clips, in-game assets, trading cards, memes, profile picture bums and more.
Some NFT marketplaces focus on sideways trading, selling different types of NFT assets to focus on a general audience. Others focus on running a vertical trading platform, listing specific NFT assets targeting a niche audience.
Examples of horizontal NFT market are OpenSea, Rarible, Solsea and LookRare. platforms like SuperRare, Foundation, Sorare, Decentraland, NBA Top Shot, FanCraze and Jump. Trade Marketplaces that focus on a specific audience. Trades in these markets are typically made in exchange for cryptocurrencies, although a few of them accept crypto stablecoins and fiat payments to expand their client base.
What is User Flow in an NFT Marketplace?
- First, users, regardless of their status (buyer/seller), must create their account on the portal and link their crypto wallet or top up the cryptocurrency in the built-in wallet.
- The seller must then print NFTs to support their digital assets. They should provide sufficient information about NFT such as details, cost (opening price/fixed price), deadline and benefits.
- The marketplace manager will manage the NFT entity and if the items comply with all their regulations, they will be listed on the sales portal. The platform can also publish NFTs on a homepage for a fee.
- A potential buyer looks at the NFT and details to bid or is ready to pay the quoted price. The bid amount is taken from the buyer’s crypto wallet.
- If the seller determines that the offered offer satisfies him or the deadline has been met, he can accept the offer leaving the NFTs to the buyer and the amount will be credited to the seller.
- In addition to the gas fee, a transaction fee may be charged during the transaction, with many different combinations possible. Fees are usually charged as a proportion of final sales. The money is used for the maintenance and operations of the platform.
Distinctive Features of an NFT Marketplace Platform
- showcase – The end user portal should contain all necessary information about NFT assets such as descriptions, ownership history, offers, previews and more.
- Search engine – The marketplace should include an advanced search feature where users can easily search for the NFT items they need. A faster implementation is important here as it plays an important role in determining the user experience.
- Filter and Sort Options – NFT marketplace should also have a common filter option so users can easily get relevant results and easily sort them according to their preferences.
- Listing Portal – Creators in an NFT marketplace should be able to easily print and list their NFTs. A private portal should allow vendors/creators to list their NFTs by providing necessary details including descriptions, mode of sale and tags.
- Status Portal – This feature will be helpful for a seller when listing their NFT for sale because moderation will take some time. It will be useful for a seller looking to sell NFT collectibles.
- Offer Portal – Buyers in the NFT market should be able to bid easily and update themselves with the current situation. It is important to set a deadline as it will increase interest in NFT items being auctioned on the platform.
- Crypto Wallet – A must-have feature for any NFT market as they play an important role in processing transactions. Although users can sign in with their wallet, it is recommended to use a built-in wallet for security to provide a seamless experience to users within the platform. You can create it from scratch or coordinate with a popular wallet provider like MetaMask or Coinbase.
- Ratings and comments – It is important to have these features so that buyers know which sellers are the best before making a purchase. In particular, those new to the NFT world will feel right at home when they can assess the value of an NFT item based on the ratings and reviews given.
A Step-by-Step Guide to Developing an NFT Marketplace Platform
- idea – As with any other startup project, the first step in building an NFT marketplace is to plan for it thoroughly. You have to consider all aspects that can go into the game. Some of the factors involved here include the business, target market, niche, competitors, solution, features, marketing, payment, and technologies used. Then, based on all the plans and decisions, frame the whitepaper that can be helpful when you need the money.
- Design – After creating your NFT marketplace venture plans, it is ideal to start designing your platform. Use the necessary technical tools, including web.js, HTML, and React, to create end-user screens. Make sure the user interface (UI) provides a comprehensive user experience (UX). Get recommendations from a limited user base and apply them in the future.
- Develop – After getting the user portal ready, it’s time to develop the back-end that supports all front-end operations. Again, use advanced blockchain coding techniques, including Solidity, Python, C++, and Java. Also, smart contracts for NFTs is the stage where you need to generate native tokens for your platform and integrate your platform into the blockchain network.
- Scale – After performing full-scale development of your platform, you should conduct intensive testing. Alpha and beta testing should be performed with a small group of users and repeated automated test cases. Errors found should be resolved promptly to ensure that the final platform is free of bugs.
- Start – Now is the time to make your platform available to the public. Ensure your user base is ready through extensive marketing across mediums. A great way to gather your initial user base is to offer great benefits to first users. It’s also important to have multiple channels of communication where you can get valuable feedback for your venture. Upgrade your platform periodically based on feedback to keep up with trends.
What’s the Difference Between Hiring In-House Developers and a Specialized Firm?
Basically speaking, both options give you the platform you want, although there are many internal differences. For example, finding in-house developers with sufficient experience developing blockchain applications is challenging as the technology is still evolving.
Also, regardless of whether they hire full-time workers or freelancers for the duration of the project, the costs of hiring them are enormous, as their work experience requires higher tariffs.
On the other hand, several firms are successful in developing NFT marketplaces and have a team of experienced professionals. Such firms can build the platform according to your requirements while ensuring that no compromises are made on the fundamentals.
The costs associated with hiring these outsourcing companies are less than having the developers working under your eyes. Recently, several regions in Asia are becoming blockchain hotspots as they have a large number of talented blockchain developers forming the backbone of some of the leading development companies in the region.
Therefore, we can say that an NFT market is one of the most profitable business ventures in the blockchain world. When it comes to development options, although working with an experienced development firm may sound ideal, it depends on your wishes and constraints.
With the world starting to adopt NFTs, it has only been confirmed that new niches have entered the world of NFTs and hence more unique markets will start their operations.
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