Non-Fungible Token also known as NFT has been the current trendsetter in the digital market world. People have started to purchase and sell digital goods at the marketplaces to an astonishing level. Everyone who is involved in the NFT world thinks that the digital goods we purchase would be sold for a huge sum like the traditional art, say, the painting of the Mona Lisa. But, where to sell and purchase NFTs? This blog will give you a detailed explanation about it.
WHAT IS AN NFT MARKETPLACE?
Non-Fungible Token is a unique digital asset or a digital certification of a digital good. Unlike in Bitcoin, Litecoin, Ether and other fungible tokens, NFTs cannot be traded directly, it requires a special platform to do so. These special platforms are called NFT Marketplaces. These marketplaces are a decentralized platform where buying and selling of Non-Fungible Tokens take place. The digital assets in the platform can be sold at a fixed price or can be initiated through an auction. The majority of the marketplaces require the buyers and sellers to have an electronic crypto wallet to proceed with the transactions. There are different types of marketplaces, some are more exclusive and most of the marketplaces are concentrated on the creation and selling of arts.
WORKFLOW OF AN NFT MARKETPLACE PLATFORM:
There are several NFT marketplaces to purchase NFTs such as Nifty Gateway, MakersPlace, Opensea, Decentraland, etc. Specific types of NFTs can be purchased from a specific type of NFT marketplaces such as NBA Top Shot for basketball videos & images and Valuables for tweets.
Some marketplaces charge a fee for gas which is the energy consumed for a transaction to take place in the Ethereum blockchain. The fees vary depending on the marketplaces, the conversion of traditional currency into Ethereum is the common mode of payment for the fees.
The selling process of NFTs varies depending on the marketplace. At first, the user should upload the contents in the marketplace and follow the instructions to turn it into NFT. After completing the conversion process, the user will receive the opportunity to add a description of the digital asset and set a fixed price, Ethereum is the commonly accepted cryptocurrency for the transaction in the marketplaces.
EXAMPLES OF NFT MARKETPLACE PLATFORMS:
- NBA Top Shot
- OpenSea
- Decentraland
- Nifty Gateway
- MakersPlace
- Atomic Market
WHY NFT MARKETPLACES ARE SUDDENLY BOOMING?
Unlike the traditional way of buying and purchasing a product where a third party is involved and everything about the transaction would appear vague. But in NFT, it is not the case because when a digital asset is sold, it provides the record of ownership and the transaction details are stored securely in the blockchain network. This happens to be the prime reason for NFTs booming all over the globe.
It may seem like NFTs suddenly rose to prominence, but they are an innovation that has been in the works for several years:
- 2017: Cryptokitties, a game in which users breed and trade digital cats that took the concept of NFTs to the mainstream.
- 2018: NFT marketplace platforms were introduced to the digital world such as SuperRare, OpenSea, Nifty Gateway and Rarible.
- 2019: Big branding giants like Nike and Formula 1 entered the NFT space.
- 2020: Several new marketplaces were created, an exclusive marketplace called NBA Top Shot was the driving force in 2020. The NFT market was tripled in size, to $250M+.
NBA TOP SHOT – THE DRIVING FORCE OF THE NFT MARKET IN THE RECENT YEARS:
NBA Top Shot is an online-only marketplace where users can buy, purchase and trade NBA highlights. These highlights are owned by users through a unique number. They are basically virtual sports cards, but instead of a picture of a player with statistics on the back, the user gets a video highlight of famous players.
NBA Top Shot is an NFT based marketplace, this exclusive marketplace is one of the most competitive marketplaces in the globe. The main reason for its popularity is because games and sports are the most commonly discussed topic among millions of active users globally. Investors wish to invest in this NFT marketplace due to its immense popularity and most importantly the NFT is on a rise in recent years and the NBA Top Shot marketplace acts as a very profitable platform to invest.
The below table shows the NFT collectible sales for the month
Benefits of NFT Marketplace
Non Fungible token’s marketplace needs have more advantages, and those advantages features will aid the user in running your marketplace more effectively,
Security
NFT marketplaces have a very effective defense system to defend themselves from adversaries. The DDoS attack is one of the most vulnerable attacks used by the attackers to drop your server downturn. The Security system of the marketplace must be efficient enough to defend against this attack.
Transparency
NFT marketplace offers you complete transparency where you can witness how your information is being handled anonymously to keep your privacy secure. NFT marketplace is one area where you can see what’s happening behind the User Interface we use.
Smart contracts
NFT marketplace has smart contracts. These smart contracts are the precode and tamper-proof digital terms and conditions for the seller and buyer. The contract automates the transaction once all the requirements have been satisfied, which is not reversible.
Decentralization
NFT marketplaces are associated with blockchain, enabling them to play in a decentralized medium, where every transaction and all other information stored will be stored in different servers distributed. Even though the information has been captured, it is impossible to trace them back to the user.
Payments and wallet integration
The wallet integration makes a more efficient payment option with no need for cards or any other account details to be revealed. Users can buy them easily without revealing too much information to 3rd parties.
HOW TO CREATE YOUR OWN NFT MARKETPLACE DEVELOPMENT PLATFORM?
These are the following steps to create your very own NFT marketplace development platform:
Define Niche:
To develop a successful NFT marketplace development platform, the developer must be aware of the digital market. The developer should concentrate on the vertical market rather than the horizontal market. Horizontal market suppliers sell everything to everyone whereas, in a vertical market, the supplier sells the products that meet the requirements of a specific type of target group.
To choose the user roles:
There are three types of user roles in the NFT marketplace development platforms, such as buyers, creators, and administrators.
Project Documentation:
The site development process begins with the documentation of the project. If the user is willing to hire full-time developers, project documentation is unimportant but to manage a remote development team, project documentation is one of the most important processes as it saves time and gives a detailed roadmap towards the next step of developing a marketplace.
Development Stage:
In the development stage, the user chooses the framework for their project, dedicated SDKs are used to ensure fast platform operation, good performance and reliability.
To implement Token Generators:
At this stage of development, token generators are implemented to generate small contracts. Small contracts are self-executing contracts with the terms and agreements between the buyer and the seller in the form of code lines. The code and agreement contained there exist across a distributed, decentralized blockchain network. The main function of this stage is to implement logic to the web page.
Test and Execute:
This stage helps the user to identify bugs and fix them. It ensures an error-free launch of the product. Additionally, software testing ensures that the current project meets the requirements of the originally specified project. The main reason why this stage is very important because a properly tested software product provides reliability, security, and high performance.
Mandatory Add-ons to keep your NFT marketplaces Preferable
The NFT marketplaces must have certain external add-ons needed to integrate with NFT marketplaces. Here are certain add-ons
- Front-end or Storefront
The front-end should be more simple, and the marketplaces should be able to showcase highlights in nft marketplaces.
- Advanced Token search
The Token search should be structured so the user should be able to find out where to search where he needs to find the desired token.
- Filters
This is more important than everything, more users opt to find the only specific category, and they should be able to do it within seconds. For that, you have to integrate more specific features such as Filters, search bar, and sort option.
- Admin panel and Dashboard
The Admin panel should act as a center where the admin will have the privileges to make changes in the marketplace as well as in the presence of the users. This helps the admin to run the marketplace without any issues. Dashboards are used to analyze and track the growth of the marketplace.
- Bidding Option
The Bidding options should be integrated with the marketplaces to attract users with flexible bidding cases. More prefer bidding to the fixed price. And an auction watchlist needed to be integrated as an important feature.
- Wallet
There are different types of wallets based on nature, like cold wallets, which will be inaccessible until it establishes a connection with the internet. Paper wallets are also more similar to cold wallets, which use paper as valid authentication. And there are many other wallet types, and Marketplaces mainly use web-based wallets like Meta wallet. A marketplace must have such a wallet or support these wallets to give users a hassle-free experience.
WHY CHOOSE INFINITE BLOCK TECH AS YOUR NFT MARKETPLACE DEVELOPMENT COMPANY?
We at Infinite Block Tech provide Non-Fungible Token development services to clients who are interested in developing their own NFT marketplace development platform. We are globally recognized and have several years of professional experience in developing blockchain platforms and other Non-Fungible Token development services. Our professional developers are highly skilled in creating a competing NFT marketplace platform based on future trends and customer needs. Our technical team works 24×7 to assist customer queries, easy customization, and assist in trading techniques to better your business growth. The entrepreneurs and investors can avail of these services by contacting us!