Everyday,  we find alluring stories about NFTs and blockchain technologies on social media pages entertaining our curiosity.  While this could be the current scenario,  studies indicate that the current market size for NFTs would expand exponentially in the upcoming years by 35%. This could be the right time to venture into the NFT realm and set a stage for intriguing business. NFT Marketplaces are the ideal source for the business where users can engage in trading the tokens and remunerate for their works. Therefore, in this blogpost, let’s discuss the NFT marketplace in detail, and explore how good a business choice it can be. 

NFTs and Types

NFTs (Non-Fungible Tokens) are digital assets that work on cryptography and blockchain technology. 

Today, NFTs are used in several places for exchanging anything that’s valuable. From songs, gifs, artworks to real-estate business, everywhere, NFTs are used to proclaim authenticity, originality and make the transfer of ownership simple and easy. Fabrication of ownership is highly impossible since the details are stored in the digital storage ledger of blockchain.

NFT Marketplace

A NFT marketplace is a trading platform that facilitates users to buy and sell NFTs.  It works on blockchain technology and allows trading through smart contracts. Some of the most successful and efficient NFT marketplaces in the world include  Opensea, Rarible, etc. 

NFT Marketplace Types

NFT marketplaces differ based on the NFTs they show to the people. Some NFT marketplaces will have a mixture of NFTs to show while others will adhere to a niche. 

Therefore, it’s crucial for you to decide which type of NFT marketplace you want to tinker with. 

Benefits of NFT Marketplaces

Some of the benefits of an NFT marketplace include: 

  • A Transparent Record of Transactions

NFT marketplaces work on blockchain technology. Therefore, the transaction details of each and every NFT presented will be under the public spotlights. 

  • A Decentralized Platform

An NFT marketplace empowers decentralization to sell and trade NFTs. Therefore, it gives people a chance to independently pay and trade NFTs.

  • Security

Since NFT marketplaces allow trade of NFTs through smart contracts and blockchain technology, they are secure and transparent. Every record of a transaction made is stored. 

  • Confirmation of Authenticity and Originality

Since NFTs are unique and have a digital code to confirm its authenticity, the trading done in a NFT marketplace is more trustworthy. 

How Does a NFT Marketplace Platform work?

Now, before getting into the business of exploring the steps involved in  NFT marketplace platform development; let’s put ourselves in the shoes of your users and figure out how a NFT marketplace platform works for them. 

Initially when a user visits a NFT marketplace platform for the first time, they sign up and create an account.  This step is followed by choosing an appropriate NFT wallet. After choosing the NFT wallet, they will engage in creating their own NFTs and presenting them to everyone.  While presenting their NFTs, they  will set the mode of payment, bidding prices for their NFTs.(if they decide to auction their works) 

After all these steps, if they succeed in selling their artwork/ NFT asset to their customers, then a transaction will be recorded with a smart contract becoming effective the moment the sale is made. 

Gist of Features to Consider

Now, having seen how a NFT marketplace works, let’s explore the features that make up an NFT marketplace. 

  • Storefront

Storefront is the feature that decides how a NFT marketplace looks. From how the NFTs get listed to how they can be viewed by the users, everything is decided by how the storefront is designed. It specifies all the necessary details (like owner details, bids, previews, price history records, etc). 

  • Token Search Bar

Token search bar facilitates a quick way to search through the contents of a NFT marketplace. From searching to categorizing the NFTs, it helps in keeping a NFT market place organized.

  • Filters

Filters are another feature that helps in viewing the NFTs presented on a NFT marketplace in detail. From stating the details of the NFT creator to denoting the price of a NFT, filters help in exploring the contents of a NFT marketplace in depth. 

  • Listing

Listing helps in adding descriptions, titles, tags to the NFTs presented in a NFT 

Marketplace.

  • Listing Status

This feature allows the  users of a NFT marketplace to track and denote the status of their NFTs. 

  •  Wallet

A wallet is a crucial feature of any NFT marketplace. It helps in storing NFTs and cryptocurrencies and initiating transactions. It acts as a base for all the NFT purchases done in the marketplace. 

  • Buy, Bid, and Auction

Buy, Bid, and Auction feature facilitates the trading of NFTs to happen through auctioning and bidding between NFT sellers and buyers in a marketing place. 

  • Security

Security is an important feature of a NFT marketplace. The more the security and transparency a NFT marketplace offers, the more will be the number of users who will sign up to use it with credibility.  

Steps Involved in Building NFT Marketplace Platforms

Now, in this section, let’s quickly look at the crucial steps involved in building NFT Marketplace platforms.

  • Deciding on the niche

NFT marketplaces can be generic or niche-oriented. Therefore, the first step in NFT marketplace development  is to decide on its niche. This step will determine the kind of users and the scope of the NFT marketplace built. 

  • Choosing the blockchain Technology

NFT marketplaces work on one or multiple blockchain technologies. Therefore, choosing an appropriate blockchain technology for the NFT marketplace is one of the steps . 

  • Plotting the UI/UX Design

The success rate and popularity of a NFT marketplace depends on UI and UX factors. Therefore, plotting an efficient UI/UX design is crucial for making users engaged with the platform. 

  • Ensuring Safe and Secure Storage

The qualitative aspect of a NFT marketplace is determined by how much secure and safe storage it provides to the users.  This step ensures safe and secure storage of transactions that happen in a NFT marketplace. 

  • Creating Smart Contracts

Trading in NFT marketplaces happens through blockchain transactions and smart contracts. Therefore, creating smart contracts is a crucial step in NFT marketplace development. And it should be done with the help of regulatory experts. 

  • Testing the functionality of the NFT marketplace

In this step, the efficiency and the functionality of the NFT marketplace is tested. Through this testing step,  the  technical errors and other potential problems relative to the developed NFT marketplace are spotted and fixed. 

  • Launching the NFT Marketplace

The final step in NFT marketplace development is to launch it and track its performance on a regular basis. By tracking its performance, the necessary changes can be made in the future. 

Conclusion: 

Now, having outlined the benefits, features, and steps involved in NFT Marketplace Development; it’s noteworthy  to say that there is a growing demand for well-developed NFT marketplaces. Therefore, this current situation has captured the focus of many entrepreneurs and business platforms around the world.