Since the existence of the first non-fungible tokens (NFTs), experts have been stating that these virtual tokens will change the flow of daily life in the future. NFTs are digital tokens that provide proof of ownership and authenticity for the products they back.
Global NFT sales grew manifold due to sudden awareness in 2021, which was due to early adopters, creators, and celebrities embracing NFTs. Yet, the underrated heroes are NFT marketplace platforms due to their role in facilitating millions of trades worth billions of dollars.
In this blog, we look in detail at NFT marketplaces and know how these platforms can be one of the evergreen business options in the Web3 world.
An Introduction to NFT Marketplace
An NFT marketplace is a platform where people can buy and sell products supported by non-fungible tokens. These platforms exist on almost every blockchain network because they bring businesses/creators and followers together. While some NFT marketplaces focus on generic trading (such as Opensea, Rarible, and Solsea), others focus on vertical trading (such as SuperRare, Sorare, Decentraland, and NBA Top Shot).
NFT marketplaces sell many items, including artworks, music, video clips, in-game assets, and plots of land in metaverses. Cryptocurrencies are the common payment options, although some accept stable coins and fiat transfers as well.
How Does an NFT Marketplace Work?
- Users (buyers/sellers) create their accounts on the NFT marketplace and connect their crypto wallets.
- Sellers create NFTs for their products, fill in the necessary information, and send them to the admin for moderation.
- Admins verify and accept the listing request if the NFTs satisfy all their requirements.
- Potential buyers can look at the NFT items and offer a bid or pay the stated price after seeing all the information given. The amount to be paid is taken from their wallet and kept on hold.
- If the seller likes the offer or the auction deadline is reached, they can accept the request, and NFTs are sent to the buyer’s wallet. The amount to be paid is released to the seller.
Salient Features of an NFT Marketplace
- Storefront – It shows all the information about an NFT asset, including description, price, and mode of sale.
- Search and Filter – These options help a user find their favorite NFT items using an exclusively programmed engine.
- Listing Portal – It helps sellers list their NFT products for sale through options for providing sufficient information.
- Bidding Portal – It helps buyers offer bids and know about the latest status of the NFT product’s sale.
- Crypto Wallet – It helps users to hold their cryptocurrencies and NFT products.
- Ratings and Reviews – These options assist new users on the NFT marketplace to know which NFT collections give value for money.
Stepwise Procedure of Developing an NFT Marketplace
- First, create an elaborate plan for the NFT marketplace platform. Planning here includes business opportunities, target market, competitors, technological requirements, and more.
- Then, work on the front-end in the NFT marketplace development process by designing user interface (UI) screens that give a great user experience (UX).
- Continue with developing the back-end in NFT marketplace development, where you develop all features related to the platform’s functionality, including coding and blockchain integration.
- Build the smart contracts and native tokens for the platform according to your needs.
- Test the NFT marketplace platform numerous times for any deficiencies and troubleshoot errors when found. Use various test cases to ensure that the NFT marketplace platform is perfect.
- Finally, release the NFT marketplace platform for public use. Get user feedback and implement constructive suggestions in future upgrades to keep up to date.
Benefits of Developing an NFT Marketplace
- One of the exclusive benefits of developing an NFT marketplace is that you can earn a user base around your business, irrespective of whether you run a horizontal or vertical business.
- Also, NFT marketplace development bridges the gap in trading between various end-users (creators, sellers, fans, and collectors).
- Developing an NFT marketplace also reduces the barriers for new entrants in the NFT space (both creators and collectors) which the world has already witnessed during the NFT boom.
- Furthermore, an NFT marketplace can benefit a business by creating an enthusiastic user community around the platform. This can even create the path for a decentralized autonomous organization (DAO) where community participation is important.
A Preview of Multi-chain and Cross-chain NFT Marketplaces
In current times where global sales of NFT assets are exploding, an NFT marketplace platform in a single blockchain network is not viable anymore if you want to achieve huge success. Such thinking has given rise to the development of multi-chain and cross-chain NFT marketplaces.
- Multi-chain NFT marketplaces work as separate platforms, although everything belongs to a single business. This feature helps massively when users intend to explore a new blockchain network, and uniformity can help them adapt better to the new blockchain environment.
- Cross-chain NFT marketplaces work as a single entity that has pages in various blockchains. Here, you can easily navigate through multiple blockchain networks from a single starting page. This helps to gather a wider community that looks to utilize various blockchains easily.
Why Would NFT Marketplace Development be an Evergreen Business Option?
When seen in plain sight, NFT marketplaces look-alike today’s e-commerce websites but sell entirely different items. As the enthusiasm around NFTs grows every day, the supporting community also grows in size and stature. Such growth initiates the requirement for new NFT products, and sellers/creators need platforms to show their talent on the bigger stage.
Such necessity makes developing an NFT marketplace a business that can be evergreen in the unstable crypto world. NFT marketplaces are required to bridge the gap between various end-users and make NFTs a retail affair.
Thus, we can say that developing an NFT marketplace will be the ideal answer for an entrepreneur who wants to join hands with the enthusiastic NFT community. NFT marketplace development is also a great option when talking about an evergreen Web3 business working for a long time.
If you want to develop an NFT marketplace, there are some companies that can aid you with the process with their professionals. Hence, NFTs are here to live, and NFT marketplaces are here to rule tomorrow’s world!