A non-fungible token (NFT) is a unique token or an intangible cryptographic certificate of a digital object that cannot be exchanged or replaced with a similar one and is transferred through a mechanism used in cryptocurrencies.
NFT cannot be withdrawn from a bank account, cashed out, or partially sold, because its value is integral. At the same time, anyone can copy it, and only the original owner holds a unique original digital image, the rights to which he/she can transfer.
Blockchain technology has opened up new opportunities for the creators of art objects, particularly, prompting the NFT marketplace development to build “venues” where these art objects can be “exhibited”.
What Is An NFT Marketplace?
NFT tokens are not available on regular crypto exchanges. For them, there exist adaptive online platforms where you can list individual digital assets for sale or purchase them after registration.
A competent process of developing an NFT marketplace allows you to establish a close relationship between the seller and the potential buyer of NFTs, providing a convenient space to place NFT trade offers. With a digital catalog and a personal account, users get ultimately safe and fast NFT transactions without having to bother with the tech side of the concept.
How do NFT marketplaces work?
Non-fungible tokens work based on smart contracts. Due to the standard release procedure, the possibility of effective interaction of blockchains is realized. This simplifies NFT transfer transactions between decentralized applications.
Unique data makes it easy to verify ownership and transfer. The owner or creator can store certain information in NFTs using metadata. The degree of significance of digital objects is determined by the buyer.
The process of trading NFTs usually looks as follows:
- Registration on the NFT platform;
- Choosing a digital wallet;
- Uploading and exhibiting for sale a unique digital asset at a fixed price or an auction rate;
- Adding an asset to the sales list after product moderation and approval;
- Getting information about rates;
- Choosing the buyer, after which the marketplace processes the transfer of digital assets.
When buying a digital asset with transaction data included, you leave evidence in the digital space of your unique right to use it. The blockchain records and publicly publishes data on all transactions. Knowing the data of the buyer, you can easily trace the history of their transactions. Quotes are available at CoinMarketCap.com.
Must-Have Features of NFT Marketplace
The user is given the opportunity to connect to the application through an Internet browser and directly interact with the options for buying and selling. Such a platform provides a complete list of data on available cryptocurrency offers and a display of the entire interaction process thanks to the following features:
Storefront
The showcase should provide an extended view of available digital objects, as well as descriptive information about owners, rates, and price history. It is the essential main page and the “face” of your NFT marketplace that should be as informative and eye-grabbing as possible.
Advanced token search
A good NFT marketplace platform should offer convenient management of tags and categories, making it easy to find the necessary collectibles. Users should get an advanced search filled with filters that remembers their history of choice and makes recommendations based on that.
Filters
On top of search filters, general marketplace navigation across a large number of objects can be greatly simplified through the use of filters that divide offers into categories. Users should get the opportunity to choose NFTs by price, payment method, status, and collection.
Listings creation
Users should be enabled to create custom NFT listings. You can provide a specialized space for traders to upload and organize their NFTs all in one place based on a unique listing category.
Bidding option
This is one of the key features. The user should have the opportunity to bargain, instead of buying a unique image for the original price. It is important to highlight the current status and the end date of the auction taking place. This helps keep users updated as well as stimulate the urgency of making a purchase. An equally important feature is the auction watchlist.
Wallet
Users need a secure cyberspace to store costs. The best option is to provide a connected (verified) e-wallet that customers already use. You can integrate a couple of popular crypto e-wallets to make the users’ lives easier, for example, Coinbase, Formatic, or MyEtherWallet.
Ratings
Ratings are important directions for new users who are looking for high-quality, demanded NFT offers. Marketplace newcomers get to save time while experienced traders also get to navigate faster across relevant NFTs. On top of that, as the owner of the site, you can use this feature to motivate the best sellers.
How to Create an NFT Marketplace?
If you are looking to join the bandwagon and create an NFT marketplace of your own, the development process ahead of you would include the following stages.
Conduct thorough market research
First off, settle with a development strategy. To do this, outline key goals and milestones, draw up a marketing roadmap with deadlines and general requirements. The right choice of niche and tools make up the foundation of your project. Discuss the concept with the developers and determine the implementation timeline.
Create features checklist
Blockchain allows you to secure rights, simplify work, and freely trade digital assets while providing the capabilities that users need. At the most basic level, your platform should support sorting of tokens by categories and filters, additional notifications showing the stages of transactions, secure virtual wallets, and access to a personal account.
Launch the development workflow
When the list of necessary features is ready, you can start creating a prototype. To do this, you need to build a technology stack, which includes:
- blockchain and storage platforms;
- development environment;
- appropriate NFT standard.
The classic choice is Ethereum. The Ethereum-based server part allows you to effectively manage tokens. Then there is Flow - a crypto programming language that is valued for its simplicity and user-friendliness. Tezos FA2 contracts are ideal for marketplaces, while Cardano is popular because it guarantees high security and stability. For storing tokens, the IPFS hypermedia protocol, Filecoin decentralized storage network, or Pinata are ideal.
NFTs based on the ERC-1155 standard allow you to create smart contracts containing different types of tokens, including interchangeable ones. Start by designing technical specifications (back-end). Determine how user profiles will be created and managed, which payment solutions to link to the system, etc.
Moving on to the front-end. To create an eye-grabbing “wrapper” for your marketplace, you need to choose brand colors, design custom page layouts, and finalize the visual design. For faster development, there are ready-made tools, such as the OpenSea SDK. But keep in mind that template solutions do not allow extensive customization and scaling.
If you are looking to build something unique and special, delegate creating an NFT marketplace to a developer that specializes in custom software development. This will require respective costs, but the result will perfectly translate your brand attributes and reflect individual requirements.
Implement the UI
The UI/UX design of your project is essential. It should be simple and intuitive, but functional, and based on different user roles. For instance, traders and buyers can get different interfaces for different purposes. This approach will surely boost the overall convenience and satisfaction as well as stimulate incoming traffic..
Test and launch your marketplace
Testing is paramount to building an NFT marketplace that allows you to identify and fix possible problems long before your users start to deal with them. Final polishing will help make sure that the project is one hundred percent ready for normal operation and fully meets end-user expectations. Then, post-launch support will help minimize operational errors and dynamically adapt to user demands.
How Much Does it Cost to Create Your Own NFT Marketplace?
The final cost is shaped by a lot of factors, such as the number of features, the size of the marketplace, the technical stack, the size and location of the development team, as well as the UI. Only approximations and estimates can be outlined at pre-implementation stages..
If you plan to create a complex, high-performance platform, you will have to invest more in development. A good way to minimize costs is to implement a ready-made template. Specialized custom services cost more because it is a clean slate project. All in all, you may need a minimum of 1,000 hours or up to 6 months of work. In the US, the cost of such a project can easily reach $50,000.
The most cost-efficient option is a professional team from Eastern Europe, which is no worse able to implement first-class blockchain solutions at much lower rates.
Conclusion
As the popularity of NFTs grows, investments in specialized platforms pay off pretty quickly. The market is developing rapidly, so your task is not to miss the sweet moment. Keep in mind, however, that going for a ready-made solution, there will be no 100% security guarantee, and your products will depend heavily on the foundation you use.
On the other hand, there is an alternative - you can hire a team of developers who know exactly how to create an NFT marketplace unlike any other. Contact us for advice. Our specialists will be happy to take on a project of any complexity and help you get an optimized NFT platform at an affordable cost!
