The media is exploding with Blockchain news. Every other day, something new occurs in the crypto world. Just the other day, the stablecoins saw some instability that led to a plunge in the market.
Crypto coins have taken trading and investments to another level. However, what seems to hold a special place in people's hearts.
While coins and trading interest people, NFTs seem to hold a special place in people's hearts. You can see how many people create, sell, or buy NFTs. So, what are NFTs, and why is there an explosion of these assets? As part of this guide, we will take you through NFTs, the marketplace for NFTs, and how you can build one if you wish to compete in this niche.
To begin with, the full form of NFT is a Non-Fungible Token. If you are still reeling in the crypto world, and haven't fully understood the depth of these tokens, let us help you.
Non-fungible translates to unique. These are unique assets that can be bought or sold by the people interested.
Now let's dive deeper into NFTs and understand how they work.
So, firstly, they are very different from Bitcoins or cryptocurrencies. How?
When you sell a bitcoin, you buy another bitcoin. Similarly, when you sell an Ethereum currency, you get another.
However, when you sell your NFT, you don't buy a similar NFT. It is unique. Say you had created a painting and put it up as an NFT. This painting is your original, and there is no other like that on the market. The NFT contains your unique identity.
If you sell this painting, you cannot buy the same painting against it. You will either get crypto tokens, another painting, or another Blockchain-based asset to match the price.
Anything and everything can become an NFT-from your painting to your house. NFTs are slowly creeping into the different industries. NFTs are a great way to secure your asset and make them unique. It also makes the transfer of assets secure through a digital medium, reducing the paperwork.
What is NFT Marketplace?
It is essential to understand how NFTs work before diving into the marketplace subject.
We know that each NFT has a specific value, and it depends on the features and value that the token drives.
These NFTs are part of the Ethereum Blockchain. Ethereum is also a token and one of the top-rated cryptocurrencies. However, the underlying Blockchain technology supports many other crypto assets, including NFTs.
The next thing you need to know about these assets is that they cannot be purchased on decentralized crypto exchanges. We have already mentioned that the value is different, and NFTs cannot be exchanged.
As a result, you will need to look for NFTs in their marketplaces, from where people can buy and sell them.
In simple words, an NFT marketplace is where potential buyers and sellers can unite to complete the asset sale. This is the place where NFTs are stored, displayed, and traded. In some cases, the marketplace is also where NFTs are created.
Types of NFT Marketplaces
- Collectibles: This is one type of NFT marketplace where you can purchase or sell game cards, stamps, and other collectibles
- Real Estate: This has recently joined the marketplace. You can mortgage or sell a portion of your real estate property on this marketplace.
- Investment: You can invest in stocks, real estate, and other assets through this marketplace
- Music and Art: This is specifically designed to convert art, music albums, and other creative assets into digital tokens.
Top 5 NFT Marketplaces
Check out these NFT marketplaces to understand how they function.
- OpenSea: This is one of the leading names in NFT marketplaces. You can shop for everything from trading cards to domain names and artwork on this platform.
- SuperRare: This marketplace offers limited options to the buyer. They collaborate with select artists and owners to list their digital assets on the websites.
- Nifty Gateway: This is the marketplace that is popular for selling some of the most expensive and rare NFTs
- Rarible: This marketplace is designed for people who have RARI tokens. It hosts art assets majorly.
- SolSea: This is another NFT marketplace designed for art creators and buyers alone. The licensing costs are slightly high in this marketplace.
The benefit of NFT Marketplace App Development
If you have been thinking of NFT marketplace app development, you need to realize the advantages of going ahead with the plan. Let's take you through the benefits.
Whenever an online transaction is involved, security is the primary concern for the end-users of the platform. The built-in security protected by the private keys ensures there is no loss of transaction.
Your end customer, who will be transacting the NFTs, is always worried about hidden costs and contracts. With the marketplace arrangement, everything is transparent and completely visible. This will add to your credibility and help the customers trust your exchanges.
With the integration of crypto wallets, the payments occur in real-time. As the transaction mode and even the pricing is mentioned with great clarity, it makes way for instant and secure payments.
There is a good chance that people might use things they are not completely aware of to cause fraud. However, with the marketplace arrangement and smart contracts in place, you can eliminate the possibility of fraud. The digital contracts ensure complete security and automate the signing process.
NFT marketplaces are part of the decentralized system; it ensures that all changes are updated and distributed in real-time. As a result, if a block is updated or refined, you can immediately notice the difference.
How does this marketplace work?
We will move towards the app eventually, but we need to understand how it functions to build the app. what are the key elements and aspects of the marketplace that you cannot ignore.
- Like the eCommerce marketplace, to operate the NFT marketplace, you need to create an account. To make transactions seamless, you need to link your crypto wallet to the NFT account.
- If you are a seller, you can create NFT for the asset you want to sell. You can use the tools available on the marketplace to convert your physical asset into an NFT.
- List the NFT that you want to sell and mention the price for the same.
- The marketplace moderator will check the listing and price. Once it is approved, it will be available for sale.
- The potential buyers will need to place their bids for the particular NFT. The top bidder will get the NFT.
This is the basic process for buying/selling the NFT. When you list an NFT to the marketplace, they will create a smart contract for the token.
Must-have Features in the NFT Marketplace
You are now aware of how the marketplace works and what you need to get started. Let's understand the features you cannot avoid including in your marketplace app development.
This is a priority feature for an NFT marketplace. It would help to make sure that all the current NFT listings are available for the user to go through. New additions, current bids on the listing, and the sold tokens should be visible to the user. It should include the name of the token, the price, complete description, and payment method.
As discussed in the "how this marketplace works" section, bidding is the key to buying/selling NFTs. There should be a way to place the bids and refine the bids as needed. This feature is essential for marketplace transactions.
The NFT marketplace transaction occurs through cryptocurrency. As a result, you must have an in-app payment system for seamless and secure transactions. Adding a crypto wallet, enabling deposits and withdrawals, and ensuring quick payments through this method is essential for better experiences.
Customers may want to search for a particular listing or type of token on the marketplace. If they have the keyword, your application should return the results. Make sure to allow partial and exact matches so that the user can search for the tokens without any issue.
News related to NFT marketplaces, new trade, and even resources to guide them to NFT transactions is welcome. Make sure you have enough resources on your website.
Your customers may want to check their entire NFT transactions, including purchases and sales. There should be a separate section that takes them through the NFTs listed and the transactions that were done.
As a new user on your NFT marketplace, the person may have many questions and queries that need answers. You might need to up your support game to ensure that all the questions are answered. If you offer extensive and immediate support, you can improve your experiences. Add chatbot, knowledge base, and other ways to provide answers.
Push notifications are essential to alert customers about the latest updates, changes, and listings. It is a necessary feature if you plan to enhance and personalize customers' experiences.
Key Considerations When Developing the Marketplace
Following a detailed process when planning your NFT marketplace app development can help you launch the apps quickly and offer high-quality solutions.
Conceptualization of the idea
We have discussed the types of marketplaces and the top marketplaces in the world. Based on your business type, what you aim to achieve, and the target market you plan to serve, you should develop a concept for the application.
Say you want to devise a marketplace for the artists, then you need to study their market. Niche down the target audience, and identify the gaps. This will help you come up with a concept for the application.
All modern designs believe in offering UX-first plans. So, before you begin designing the application, understand how customers are consuming these applications. Study their usage methods, how they navigate from one screen to another and which screen areas are difficult to access.
Once your design and experience strategy is finalized, it is best if you can create the prototypes of the design. Choose the tools that can help you make the screens. These wireframes should ensure that the customers can navigate back and forth easily.
Identify the Blockchain
At the moment, all marketplaces operate on Ethereum. You will need to check how to work with this Blockchain and implement the app on this layer. Going in-depth with Blockchain development can help in this case.
Once everything is approved, it is time to develop the application. Coding it right and adding all the intelligent contract automation code is essential. It would help if you also had a good idea for deploying the application on Ethereum.
It is essential to test the application's usability, functionality, and accessibility. Use the testing tools available for NFT marketplaces to conduct unit and performance testing.
What to Look for When Hiring the Developer?
Blockchain application development is in its nascent stage, and it is crucial to hire the right person to help with NFT marketplace app development. Here we will take you through what you should check when hiring a developer.
Expertise in Blockchain
The developer should have an in-depth knowledge of working with the Ethereum layer. They must be skilled with Blockchain development and have worked with NFT marketplaces in the past.
If they aren't aware of how smart contracts work or have knowledge of Ethereum, they may not be able to help with testing and deployments. They will not be able to translate your idea into an application either.
Understanding of marketplace features
This is key to developing a marketplace application. If the user doesn't understand how the marketplace works, they will not know the must-have and advanced features for the same. It is, therefore, vital that you choose someone with prior development experience. At the same time, they should be aware of how the industry-specific marketplace works.
You will either hire the developer for the complete project or be a part of it when you are outsourcing. There would be a specific number of hours you will need from them. it is essential to check their availability and commitment before you proceed with hiring NFT marketplace developer.
Lastly, you need to define the budget for your application development to kickstart the development. If the developer or company happens to match the budget you have in mind, you can go ahead with them.
NFT marketplaces are on the rise. Many businesses are vying for the opportunities NFTs are offering. If you are one of them and wish to build an NFT marketplace, you should be clear about the operations. It is essential to determine the marketplace goals, the visual understanding, and the type of marketplace you want to devise.
Having a solid technology partner by your side can help you launch the marketplace faster while staying aligned with your vision. Make sure you use the tips we have offered here when choosing the developer for the NFT marketplace.