How NFT Marketplace Development Benefit Your Business?
- 1. What is an NFT?
- 2. How Does an NFT Marketplace Work?
- 3. Why Does Your Business Need NFT Marketplace Development?
- 4. Must-Have Features of NFT Marketplace
- 5. What Steps Do You Need to Take?
- 6. How Much Does it Cost to Develop an NFT Marketplace?
- Final Thoughts
As of June 30th 2022, the global market capitalization of Art Blocks NFT (non-fungible token) projects was worth roughly 840 million USD. So, what really is NFT and why do you need NFT marketplace development for your business? Let’s find out with Newwave Solutions!
1. What is an NFT?
A non-fungible token, known as an NFT, is a unique cryptographic asset that is based on blockchain technology and cannot be replaced. Each NFT has its own properties, such as identification code and metadata. Unlike cryptocurrencies, an NFT is non-fungible, which means that it cannot be replaced or interchanged with one another.
The data of an NFT can be tied to digital content and artworks like photos, songs or videos, gaming items, domain names, etc. Moreover, owning an NFT sometimes grants you access to exclusive tickets to special events, exclusive merchandise, or even physical assets like yachts or cars.
An NFT has many exceptional features, such as:
- Uniqueness: Each NFT has an owner, and it cannot be manipulated. Also, its unique data makes it easy to validate the ownership.
- Non-Fungibility: an NFT is one of a kind and is not equal to one another, so it is impossible for it to be exchanged for. Meanwhile, other cryptocurrencies are fungible, they can be traded for one another because they are equal in value.
- Indivisibility: An NFT is indivisible and cannot be divided into smaller parts.
- Digital Asset: An NFT is a digital asset. It can be a video, an audio clip, an image, etc., which is linked to a crypto coin’s blockchain.
- Rarity: This is one of the most critical sides to determine the value of an NFT.
2. How Does an NFT Marketplace Work?
An NFT Marketplace is simply a platform to store, buy, sell and trade NFTs. In order to use an NFT marketplace, you will need a digital wallet that allows you to store and trade your NFT tokens. All types of NFTs can be found on NFT marketplace platforms, such as music, art, in-game items, trading cards, and more. Some of the top NFT marketplaces now are OpenSea, Rarible or NBA Top Shot.
From a user’s viewpoint, how would an NFT marketplace work?
- First, users must create an account and log in. Then, they must connect their crypto wallets and add funds to their wallets.
- If they want to buy an NFT, they can purchase it directly through an auction or for a fixed price. They can also negotiate their desired price with the owner of the NFT.
- If users want to sell an NFT, they must upload the listing with a fixed price or auction. Afterward, the asset will be verified and listed for sale. If the seller accepts the offer, the NFT will be released to the buyer, and the amount will be released to the seller.
3. Why Does Your Business Need NFT Marketplace Development?
You might wonder: “From where do NFT marketplace platforms get profit?”. NFT marketplaces simply make money by charging users gas fees, transaction fees, bidding charges, initial setup fees or even by creating affiliate programs.
Your business can start with an NFT marketplace development to make money from mentioned fees above. On the other hand, an NFT marketplace also helps with driving attention to the brand, attracting investments and bringing transparency to your business and products. There are many industries that can apply the NFT technology to gain extra profit from brand-related NFTs. Below are some businesses that thrive with NFT:
- Real estate
- Digital art
4. Must-Have Features of NFT Marketplace
If you are looking to implement an NFT marketplace development project, don’t forget to check out these features:
A shopfront should have flawless UI/UX to offer customers a dashboard with all the necessary information like product title, owner, price, description, offer and payment gateway. Keep this in mind when you carry out your project.
4.2. Advanced Search
This is one of the most useful tools you can’t neglect when you implement an NFT marketplace development project. With advanced search options, users are able to narrow the scope of a search query to find the exact content quicker. Advanced search options can include options for type, feature, color, etc.
Just like advanced search, filters are a significant feature you should never leave out in your NFT marketplace development process. Navigating a website with a lot of content can be easier with the help of filters since it helps users effectively browse and find items, drill down to their needs and eliminate numerous search queries.
4.4. Creating Listings
It is best to allow users to create their own listings so they can save or share collectibles. Listings should have basic information, such as title, description, price, or tags.
Users must have a wallet to transfer, receive and store NFTs and cryptocurrencies. The easiest and most convenient solution for this case is to integrate with some popular cryptocurrency wallets like MetaMask, Formatic, WalletConnect or Coinbase.
4.6. Ratings and Reviews
Everyone loves to see ratings and reviews about the seller that they are buying from. The ranking system and feedback will help users find out how credible sellers are and make it easier for new users to choose items.
A support system can assist users in resolving problems and conflicts. It can be a call center, an email support center or a chatbot, include this in your NFT marketplace development project!
5. What Steps Do You Need to Take?
Step 1: Choose a Target Market
Before getting into NFT marketplace development, there are many domains and you should be specific about what niche you want to choose. By choosing the right niche, you can provide users with more value and attract attention to your NFT marketplace. Some of the most popular NFT marketplace niches are NFT for games, NFT for art, NFT for music, NFT for sport or NFT for avatars.
Step 2: Decide Your Desired Blockchain Platform
Once you have defined your niche clearly, you can start working on the NFT marketplace development process by deciding the appropriate blockchain platform for your NFT marketplace. You can also choose to make your marketplace support multiple blockchains.
Read more about Top 10 Popular Blockchain Platforms in 2022
Step 3: Define Required Functions
Features that are impressive to users are what make you stand out from other NFT platforms. When it comes to NFT marketplace development, you should carefully pick out some features that work best for your platform. Some of the features you might want to get are:
- Nicely design storefront
- Filters and advanced search options
- Listing status
- Auction option
- Ratings and reviews
- Support center
Step 4: Find a Team
If you want to create your own unique NFT marketplace from scratch, you will need a team of experienced front-end, back-end, UI/UX, and blockchain developers. It would be easier for you to find an NFT marketplace development company to take on your project since they have extensive domain knowledge and can offer you full-cycle NFT marketplace development services. From identifying core features to monitoring all steps in developing NFT marketplace, you can find out the best blockchain companies via this article.
Step 5: Release an MVP instead of the full NFT
It is important to reduce the failure possibility of the NFT marketplace development project by just developing an MVP (Minimum Viable Product) first. With this MVP including basic features, you can explain to users what your platform is about and get to know if your business idea is going on the right way.
Step 6: Launch a Full NFT Marketplace
When you have brought your MVP to market and confirmed that there is market demand for your NFT marketplace with the success of the MVP, you can start adding more and more features and keep improving your NFT marketplace development project with frequent updates.
6. How Much Does it Cost to Develop an NFT Marketplace?
To determine how much it would cost for your NFT marketplace development plan, you have to find out what aspects you need to complete. The complexity and difficulty of the project also make the cost higher. Normally, the cost of NFT marketplace development can vary from $20K – $500K, depending on how complex it is, what tools and technologies are used and what hiring models you choose.
Clearly, the NFT sector is exciting with a prospective future ahead. However, an NFT marketplace development project is definitely not easy to start alone since you have to go through lots of steps and different technical challenges. If possible, just reach out to the right NFT marketplace development company to turn your idea into success.
With diverse knowledge and experience in blockchain-based software development, Newwave Solutions can provide you with excellent NFT marketplace development services so you can make a killing. Let’s make headway in NFT marketplace development by contacting us today!