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Having covered aspects of Decoding NFT - The pulse of digital assets in part 1 and The future of Non-Fungible Tokens: 2021 and beyond in Part 3, we now look at A detailed guide on NFT Marketplace Development in part 2 of NFT blog series.
The non-fungible token marketplace can be explained as the digital platform where collectors, investors, and creators get an all-in-one experience to store, display, buy, and sell NFTs. The NFTs are the digitalized assets built using Blockchain technology, and the tokens reflect exclusive digital artworks like design, artwork, stamps, pictures, music, and more.
Combined with Blockchain-agnostic technology that authenticates provenance for unique physical artworks in the form of digital tokens, the carbon-neutral NFT marketplaces allow the collectors, investors, and creators to facilitate digital transactions with a unique identity and zero possibility of duplication.
The Non-Fungible Tokens (NFTs) marketplace has witnessed a surge in the second quarter this year with $2.5 billion in sales. With the rise in adoption of Blockchain-based NFTs as the pulse of digital assets across the various crypto and Blockchain ecosystems, it is expected that now the future of the NFT marketplace will be bright forever.
How does the NFT Marketplace work for creators?
The Non-Fungible Token marketplaces are the decentralized platforms built on Blockchain technology. For creators, the niche NFT platform works by allowing them to make the first listing. The process of minting an NFT is followed by topping up the crypto wallet with ether currencies to cover transaction fees. As a next step, you have to upload the digital asset onto the marketplace at a fixed rate and wait for asset verification/approval for listing. Once the listing is active for sale, you will be connected with prospective buyers when the investors accept your bid.
What are the core features of the NFT Marketplace?
The NFT marketplace development is gaining significant prominence in the crypto ecosystem, and there are no signs of slowing down. Due to a burgeoning digital NFT artwork market, new businesses are created every year around this model involving huge investments.
Given below are the key features every NFT marketplace must have to disrupt the NFT-powered ecosystem in this new digital age:
- Storefront where the registered users access the details pertaining to NFTs biding, owners, preview, minting of NFTs, price history and listing approvals.
- Filters for seamless navigation of NFT categories, payment method, listing status, and collections across the NFT marketplace platform where thousands of digital assets and collectibles are available for auction.
- Search feature to support tagging and category management. It will help all the active users to search collectibles across the platform easily.
- Create listings to enable artists or creators to add digital artwork on the platform by uploading files, submitting the token details, and making NFTs active for auction.
- Wallets to allow users to store, send and retrieve funds for Non-Fungible Tokens in real-time.
- Add Collaborator to enable sellers to create a collaborator responsible for modification of collection settings, adding new items, receiving payments in exchange for NFTs, and making necessary changes in the collection's royalty payout address.
- Bidding and Buying feature enables all the registered users to start bidding and purchase the NFTs listed for auction on the NFT marketplace platform.
How to get started with NFT Marketplaces?
Typically, the marketplaces for Non-Fungible Tokens are the revolutionary way to make NFT minting cost-effective for artists and creators without any potential risks of duplication in our rapidly digitizing world. Like any regular cryptocurrencies, NFTs are listed and traded on these platforms that are highly secured, user-friendly, and built for NFTs. Given below are the prerequisites to access different types of NFT marketplaces:
An Ethereum wallet: To get started, you require setting up an Ethereum wallet of choice that is fully compatible with the blockchain network and supports ERC-721 (Ethereum's token standard for NFTs). MetaMask, Coinbase Wallet, TrustWallet, Portis, Fortmatic / Magic, Arkane, Authereum, Bitski, Dapper, Kaikas, OperaTouch, and Torus are a few low-friction and usability-focused Ethereum wallet options available to choose from. These wallets serve the same purpose but may differ in frontend features, browser compatibility, and tradeoffs.
Add the amount of coins: Pre-fund your wallet with Ethereum currencies like ETH, USDC, DAI to begin with the trading process of the Non-Fungible Tokens of your choice. For uninterrupted experience, you have to identify the suitable cryptocurrencies supported by the NFT marketplace of your choice.
A user account: A signup to a valid user account is a must-have to gain access to any NFT marketplace after purchasing some ETH. Without this, you will not be able to connect your wallet to an NFT Marketplace necessary to transfer cryptocurrency received from exchanges to the respective wallets.
A network fee: Many of the NFT marketplace platforms charge a Blockchain network fee and individuals need to pay this fee to get started with listing and creating NFTs on a particular marketplace platform. Generally, the amount of payment varies from platform to platform.
Building an innovative NFT Marketplace on Blockchain technology begins after completing the steps mentioned above. The first factor in the NFT Marketplace Development cycle is hiring a strategic digital transformation enabler with in-depth industry expertise to develop an ERC-721-compliant Ethereum Blockchain-based solution capable of delivering exceptional user experiences while trading digital artifacts seamlessly.
Your strategic NFT Marketplace Development partner is responsible for framing the functional and non-functional requirements, platform Prototyping UI/UX, the development using Dedicated SDK or Software Development Kit, and implementing token generators to create small self-executing contracts, multi-payment gateway integration, and rigorous platform testing for quality assurance.
Token standard, Blockchain technology, front-end user interface, stable back-end experience, compliance with the different NFT standards, and extended supports are some areas of consideration that make any NFT marketplace platform frictionless, highly secured, efficient, and scalable.
How much does NFT Marketplace Development cost in 2021?
Well, this is an intriguing question. Generally, the NFT marketplace development is a complex process that involves approximately 100-200K USD as an average cost. However, the development cost may vary depending upon the specific project requirements and level of customization. For example, the cost of the ready-made NFT solution will be low compared to a custom-made NFT marketplace with extra additions of dynamic features. A sign-up mechanism, access to exclusive airdrop programs, multi-chain compatibility, software upgrades, and third-party API integration are some factors that majorly dominate the NFT Marketplace development costs.
What is the largest NFT Marketplace?
OpenSea is the first and largest peer-to-peer NFT marketplace with two million transactions worth $3.4 billion in trading volume as of August 2021. Using this platform, OpenSea users can discover, collect, create, and sell extraordinary Non-Fungible Tokens digitally. Presently available on iOS and Android, the OpenSea NFT marketplace works as a vast gallery supporting the broadest categories of user-owned NFTs such as Axies, ENS names, CryptoKitties, and Decentraland with Blockchain-managed ownership.
Axie Infinity ($870M), Cryptopunks ($340M), Makersplace ($30M), NBA Top Shot ($23.56M), Rarible ($18.68M), Enjin ($20M), SuperRare ($227M), Hoard Exchange ($20M), Mintable ($13M), and Sorare ($17.54M) are some popular NFT market competitors of 2021 riding the current wave of interest in non-fungible tokens in the cryptocurrency ecosystem. Anyone can leverage these Blockchain-based platforms to buy and sell digital assets, value-added offerings, and intellectual properties.
The Blockchain-based NFT marketplaces are the most significant breakthrough and are expected to change the world. They have already unlocked new horizons of transformative growth for businesses involved in the crypto markets, representing physical assets in the digital world. Are you ready for a new era of decentralized trading?
Explore more in the NFT Blockchain Development blog series:
Part 1: Decoding NFT - The pulse of digital assets where you will learn how Non-Fungible tokens push digital frontiers for top Blockchain development companies accelerating digital transformation for businesses.
Part 3: The future of Non-Fungible Tokens: 2021 and beyond talks about NFTs dominating the digital trading trends like cryptocurrencies and Blockchain