The global economy has transformed with the advent of Blockchain applications in the process. From fungible tokens like cryptocurrencies to non-fungible tokens, the financial landscape of digital transactions has become more encrypted, authentication-proof, and unique.
But, what makes the NFT marketplace a growth-magnet opportunity for businesses?
What do non-fungible tokens have to offer the digital world?
Well, we are going to answer those questions soon. Keep reading it.
In this blog post, we shall walk you through the below-mentioned pointers.
Table of Contents
- What Is NFT?
- How Can You Buy & Sell NFTs?
- Benefits of Creating an NFT Marketplace
- Top NFT Marketplace Examples
- Must-Have Features in Your NFT Marketplace
- How to Create an NFT Marketplace
- How Much Does It Cost to Create an NFT Marketplace?
- The Future of Gaming With NFTs
Let us delve into it.
What Is NFT?
NFTs are cryptographic tokens that act as digital certificates authorizing the uniqueness of digital entities, real estate, artwork, other collectibles, and even people. One can identify NFTs as a unique token that cannot replicate with another. For example, 1 USD can be replaced with another 1 USD. Also, 1 unit of bitcoin equals 1 unit of bitcoin, which is not the case with non-fungible tokens.
How Can You Buy & Sell NFTs?
The process of selling and purchasing NFTs work through an intermediary platform called the NFT marketplace. You can buy or list and buy NFTs on the platform. So, is the process of selling and purchasing NFTs the same? Well, not exactly. However, the setup remains the same.
So, how do we buy NFTs?
To buy an NFT, you can first add a plugin-based digital wallet called MetaMask to the chrome browser. This digital wallet will help you initiate secure ether transactions in order to buy NFTs. You can buy ether and add them to your wallet for purchasing NFTs on a marketplace like OpenSea, Rarible, or others.
Whichever digital art or collectibles you want to buy, you can bid an amount. Generally, the process occurs like an auction house but there can also be items that can be bought at a set price by clicking the ‘Buy now’ button.
The digital wallet charges some fee to allow purchasing of ether coins.
You will also be charged a gas fee by the NFT marketplace. After paying the complete price including the gas fee, you may then own the collectible.
Now, how do we sell an NFT?
To sell NFTs, you can list the item on a marketplace. To list single or multiple collectibles, you can upload any file type including PNG, JPEG, MP3, or others. There can be a maximum limit for uploading these files, i.e. on Rarible, the limit is 30 MB.
Thereafter, you can set a price or put your item on sale to invite bids.
After paying the gas fee from the digital wallet (such as MetaMask), you can then sign the sell order and complete the listing process.
Whenever the product is sold, the funds will be transferred to your wallet. You can use those funds to buy more NFTs or cash them out using a cryptocurrency trading app.
NFT marketplaces use Blockchain Smart Contracts to enable the execution of terms and conditions in selling and purchasing NFTs.
Smart Contracts are a codified set of conditions that are followed based on consensus held by a consortium.
Benefits of Creating an NFT Marketplace
Why is there so much hype for NFT marketplace development these days? The reason lies behind the increasing popularity of NFT. People are talking about its security strength, authentication model, and ease of processing.
In March 2021, the NFT market registered sales worth $220 million, contributing to nearly half of all-time NFT sales till the point.
So, if you are a business leader and want to invest your resources in the democratized economy of NFT by providing a platform, you can create a marketplace that is feature-packaged and competitive.
But, what are the core benefits of building an NFT marketplace? Let us explore.
Versatile Development Methods
Realizing the scope of growth opportunities an NFT marketplace creates, the options to build a platform like that are diversified. You can always do out-of-the-box things with the platform and make it more user-friendly, personalized, and result-oriented.
Implementation of Different Blockchains
Since Blockchain is the underlying technology behind the concept of NFTs, you can utilize it in different processes and functionalities in your marketplace. You can use it for currency conversion, data authentication, trading, and even execution of condition-bound protocols.
Despite being popular and growing exceedingly well, there is still a large audience that is not aware of what NFT is, how does it work, how advantageous it can be in terms of trading, and a lot of other things. So, there is a big opportunity for business enthusiasts to make people learn and earn. And, if you become a credible knowledge station, you can certainly become their favorite trading station as well.
Easy Development & Deployment
Developing and deploying an NFT marketplace can be as simple or complex as any other application type. You might need to create a complete infrastructure to meet the demands of the users buying or selling NFTs on your platform. You can allow third-party integration to allow users to add, convert, pay or remit funds which is a technical process that we can leave to the techies for now.
Revenue-Generating Business Model
An NFT marketplace provides you with a wide range of opportunities to earn your revenues. They are popular, secure, and credible which means you can trust their business capability. You need a well-planned business strategy and its right execution to outgrow other contenders in the market and it starts from understanding what your audience may or may not want from an NFT marketplace.
Top NFT Marketplace Examples
If you are a normal user and want to buy or sell NFTs, you can find plenty of options and you are just a simple Google search away. But, different marketplaces can offer different user experiences, charge different conversion and listing fees, and provide different facilities.
Now, if we put you in the driving seat and ask how you would want to create your NFT marketplace, you may list out different features from a range of top NFT marketplaces and put them into a box to make your own.
So, which are the best NFT marketplaces you can take inspiration from to create your own platform.
Let us have a look.
OpenSea is among the world’s first and most popular NFT marketplaces. It was launched in 2017 by Devin Finzer and Alex Atallah after being inspired by the inception and growth of CryptoKitties. CryptoKitties is a Blockchain game that allows users to sell, trade, or give away CryptoKitties (plural) available in the form of NFTs like game cards. Users can sell, trade, or give away these crypto tokens.
OpenSea is a complete NFT marketplace that supports multiple Blockchains and allows its users to sell or purchase artwork, music, domain names, trading cards, and other collectibles.
AtomicHub is another leading NFT marketplace supporting different Blockchain protocols. The marketplace is owned by pink.gg, a Blockchain development company. The company also owns other Blockchain products particularly serving the interests of NFT customers.
You can buy, sell and trade different assets in different categories on this marketplace.
Founded in 2017, SuperRare is identified as a trending NFT marketplace that supports the collection and trading of unique, single-edition digital artworks. Users can create tokenized and crypto-collectible digital items which can be bought or sold through a simple procedure.
Founded in 2020 by Alexei Falin, Rarible is another well-known and established NFT marketplace. The platform allows digital artists and creators to sell their assets such as digital artworks, memes, or parcels of virtual land using the efficient interface of Rarible.
Binance is already a well-established cryptocurrency trading platform. The company furthered its arms by launching its own NFT marketplace in June 2021. They also released this news through a blog informing about the launch of Binance NFT. The platform has gained immense growth in a short span of time.
Must-Have Features in Your NFT Marketplace
What makes an NFT marketplace users’ favorite are the features it offers. The ease of payment, execution of all transactions, interactive checkout, and appealing user interface can be some of the features that can let your platform come out better than your contenders in the market.
Here, we are shedding light on some of the most fundamental features that you cannot miss adding to your NFT marketplace.
The fundamental concept of an NFT marketplace is no different from that of an eCommerce marketplace which means you can certainly consider the same approach for creating or deploying these platforms to some extent. Storefront acts as the face of your marketplace where users would view different products and their details such as price or auction window.
An NFT marketplace development company can add advanced search buttons, so they can find items of their interests fast and more precisely. They can expand the scope of search results as there can be a wide range of niches of products listed on the marketplace. Being more accurate about the search functions will allow your marketplace to engage in a smoother buying process.
To make the listing of products hassle-free on the marketplace, developers can engage in easy navigation elements on the platform. They can also add instructions to inform users about the uploading and selling process on the NFT marketplace.
Both sellers and buyers would want to remain updated on the subsequent outcomes of their activities on the NFT platform. Sellers are informed when there are any new bids for products they put on sale. They would also want to know if the products for which they set a price are being purchased.
On the other hand, buyers can expect notifications on the authentication of products they want to buy.
Direct Buying and Auction
Most of the NFT marketplaces allow users to buy NFTs at set prices as well as through a timed auction. Having a timed auction can be more complex than the conventional or direct buying process as a product can be sold at a set price without any competition factor.
To sell or purchase any products using the NFT marketplace, users are asked to add a digital wallet. It should be ensured that the platform supports maximum crypto wallets and engage in fast, flawless, and secure transactions. Users are provided with private keys or phrases to initiate their transactions safely.
Ratings & Feedback
Ratings and feedback can help to ensure the credibility of different traders in a marketplace. One would see the ratings of a particular seller and make an easy call for buying NFTs. Since NFT marketplaces are public platforms, it is also important to bust bad sellers when they are given negative feedback.
How to Create an NFT Marketplace
We received queries where people often ask two questions; what is NFT and how do we create an NFT marketplace?
Well, we have answered the first question in the earlier part of this blog and it is time to discuss the process for creating an NFT marketplace.
So, what are the steps to begin with? Let us find out.
Know Your Audience
The very first part of the process to build a marketplace like that is to identify who your audience is and what they expect as your customers. It will help you to personalize the platform more effectively.
Select Domain Name
A domain name is often a business name. So, it is important to be very careful while choosing domain types and specifying the domain name. You can purchase the domain and hosting services from any service provider such as GoDaddy, Hostinger, etc.
Once you have a clear image of what your marketplace is going to look like, UI developers can work on its UI. They will code the UI components and webpage with the help of a wireframe provided by the business team.
Choosing Blockchain Model
Blockchain is the underlying technology enabling the operation of an NFT marketplace. You would need smart contracts to indulge in the timely execution of all conditions defined by the sellers. Choosing the right Blockchain platform also depends upon the strength of the community your product will be targeting.
Integrating Digital Wallet
Integration of a third-party digital wallet such as MetaMask will allow your NFT marketplace to initiate encrypted, secure, simple, and fast transactions without affecting the regular functionality of the platform as a whole.
Specify Categories & Listing
You choose the product categories that your marketplace will offer trading services for. You can specify the listing features for the marketplace such as direct buying, auction timing, automated fee calculator, etc.
Select Base Tokens
Most of the NFT marketplaces are using Ether, a cryptocurrency built using the Ethereum Blockchain platform. But, technically, any user can buy NFTs using any cryptocurrencies.
Implementation of Features
We mentioned the fundamental features of an NFT marketplace in the earlier section. After setting up a Blockchain and developing a UI, we can implement the features using a programming language.
Test & Launch
Now that you have a product ready to use, you can test it on different grounds. You can test its functionality, usability, and other important elements with the help of quality testers. A well-tested product escapes any real-time discrepancies and process loopholes.
Once you are done with testing, you can make it a big launch for your product.
How Much Does It Cost to Create an NFT Marketplace?
Those willing to avail of NFT marketplace development services ask about costs to plan their budget before making a final call. Well, it is not a good practice to provide a constant estimation without considering the needs of the clients.
There can be a number of cost-driving factors to estimate the cost for creating an NFT marketplace app including the following;
- Project complexity
- Technology stack
- API integration
- Project duration
- Number of panels being created for different roles
Alongside the above-mentioned elements, there can be other important factors that drive the NFT marketplace development cost.
Let us have a look.
- UX/UI Development: $2200 – $5000
- Authorization and Security: $3000 – $8000
- User Profiles: $2300 – $5000
- Home Page: $3500– $10,000
- Search and Filters: $4000 – $11,500
- Product Page: $2000 – $5000
- Reviews & Ratings: $2500 – $5500
- Shopping Cart: $2500 – $5500
- Payments: $2000 – $5000
- Notifications: $2000 – $4000
- Ethereum Incorporation: $4000 – $11,500
- NFT management: $4000 – $11,500
- Inventory Management: $2000 – $5000
- Buyer Panel: $3000 – $7000
- Author Panel: $5000 – $14000
- Admin Panel: $3000 – $10,000
Total: $47,000– $123,500
This cost estimation may vary considering the real-time changes from clients.
The Future of Gaming With NFTs
Gaming is the most responsible sector for the staggering hype in the growth of NFTs. CryptoKitties is a Blockchain game that enabled its customers to purchase uniquely identifiable game cards called Cryptokitties. These cards were made available in the form of NFTs.
Even today, game cards are among the highest purchased assets on these platforms. Thus, we can conclude that the existence of NFTs in gaming or vice versa will certainly expand further.
There are game development companies working on games where gamers can purchase weapons or other game items as NFTs.
NFTs eliminate ownership disputes. We can see the utilization of NFTs in even more applications. With increasing use cases of this cryptographic token, there would be demands of sustainable infrastructure and process architecture built on the foundation of Blockchain technology.
It is evident to see a rise in the creation of more NFT marketplaces. Passionate business leaders can presume the future of NFT marketplaces and a plethora of growth-oriented business possibilities packed with it.
Sparx IT Solutions is an ISO 9001:2008, NASSCOM-recognized digital solutions provider. We have been serving a global clientele of successful business leaders across industries. We can help you build a rich-featured. User-oriented, and revenue-generating marketplace using our expertise in delivering NFT marketplace development solutions.