If you think NFTs are merely a fad, think again. They have quickly established themselves as valuable, immutable, and tradable assets on the blockchain. Users with a variety of professional backgrounds, from painters to biologists, aspire to make fortunes.
When we first started providing NFT marketplace development services, we were often concerned by the absence of NFT markets. Customers came to us with new ideas for creating NFTs, however, they didn’t know when or how to do so.
This is when we recognized that simply minting NFTs is insufficient. Users will also require a dedicated marketplace to search for, market, sell, buy, and exchange NFTs. We quickly grasped NFT marketplace development and launched numerous platforms for specialized needs.
In the following article, we present a high-level overview of the complete process of creating a marketplace from start. We will also guide you through the potential income model, key features, and technological process for launching your own NFT marketplace.
What is an NFT?
An NFT is also known as a non-fungible token and is made up using two parts: non-fungible and token.
Non-fungible in economics is used to describe any asset or goods that are non-interchangeable such as art, car, house, etc. They cannot be swapped with any other thing of the same value. However, a fungible item, such as a ten-dollar bill that can be easily converted into ten-dollar bills can be easily converted into ten one-dollar bills.
A token is a virtual/digital representation or a proof of ownership of an asset stored on a secure and decentralized blockchain, such as the Ethereum blockchain.
Therefore, a non-fungible token stored on a blockchain represents digital assets and creative products. Unlike a cryptocurrency, where all tokens are identical, NFTs are unique and very few. This rarity makes them collectible, just like art.
Non-fungible in economics is used to describe any asset or goods that are non-interchangeable such as art, car, house, etc. They cannot be swapped with any other thing of the same value. However, a fungible item, such as a ten-dollar bill
Properties of NFTs
Indivisible & Non-Interoperable
Each NFT has different attributes and a separate identity. This distinguishes them from cryptocurrencies based on blockchain technology, such as Bitcoin. Likewise, NFTs exist in their whole and cannot be subdivided into smaller components.
Because the underlying blockchains are incompatible, the NFTs stored on them are as well. After that, it implies that if you produced your NFTs on the Bitcoin blockchain, you will be unable to move them to Ethereum or any other chain.
An NFT is a public record of ownership that anybody may verify if they so want. The legal right to the ownership, income, and transfer of a digital asset is still subject to legal ambiguity.
To be able to programmatically convert your digital asset into an NFT is the first requirement for any digital artist. The process involves a complicated mechanism of creating a unique encrypted token, but that is taken care of by specialized tools and apps provided by NFT marketplaces.
NFTs are intended to share the benefits of their efforts. As a result, anytime an NFT is traded, a predetermined quantity or percentage of the transaction is sent to the author of the NFT’s crypto-wallet.
This offers up a world of possibilities for artists who have previously been denied their rights and credit for their originality and labor. However, determining the actual amount of royalties payable remains an open subject that is dependent on the artist in question.
The NFT’s author has total control over the number of copies of the digital asset that may be created and distributed. Therefore, it might be as few as one or as many as a few thousand copies, resulting in an artificial scarcity of the NFT. Most importantly, the NFT’s value is driven by its rarity and distinctiveness.
How Does an NFT Marketplaces Work?
Before getting deeper into the process of an NFT marketplace development, it’s essential to understand how an NFT marketplace performs. Let’s look at it through the eyes of a new user who has just discovered the marketplace.
All NFT platforms demand users to sign up and download their applications, whether they are makers or collectors. Their applications serve as a digital wallet for storing and accessing their NFTs.
After that, creators may turn their digital assets into NFTs by submitting them to the marketplace app’s creator area. They decide on the number of copies and the cryptocurrency in which they will take payments when they set up the NFT. In addition, creators can specify a fee royalty for future transactions in their NFTs.
Tokens are developed and then submitted for approval and listing. For listing on the marketplace, creators can choose between an auction with a reserve price or set pricing. When an enthusiast places an order, a smart contract transaction is initiated, and ownership rights are transferred.
Please refer to the below image for more understanding of the NFTs working process.
What Type of NFTs can List on a Marketplace?
It’s akin to asking what kinds of things can be sold on an e-commerce site. NFT Marketplaces can either focus on a certain type of NFT (for example, arts NFTs, real estate NFTs, etc.) or develop a website that provides all types thoroughly. You must make that decision depending on your revenue model and business vision.
For more clarity, let’s categorize them into –
Universal Marketplaces – That lists all types of NFTs.
Niche Marketplaces – That lists a specific type of NFT.
Here’s a quick list of popular NFTs to start your marketplace
How to Develop an NFT Marketplace?
Building an NFT marketplace from scratch is a difficult process that requires the assembly of several components. The following major phases comprise our NFT Marketplace Development process.
Step #1: Conduct Thorough Market Research
The first stage in creating an NFT marketplace is to undertake extensive research on your target audience, major competitors, as well as some recent crypto industry trends. You must discover answers to the following questions to have a thorough understanding of the current global market situation:
- Who are your target customers?
- What would be the key niche of your NFT Marketplace?
- Which features you must include in your NFT marketplace to provide your users with the best possible experience?
- Which Blockchain platform would work for asset tokenization?
- Who are your competitors and the types of marketplace services they are offering to their audience?
Step #2: Create the Features Checklist
After conducting thorough market research, you must begin with selecting major features for your marketplace. Below-listed are some noteworthy features you must include in your NFT marketplace to get an edge over your competitors:
The registration procedure should be easy. Users will sign up for an account on the marketplace by clicking the “sign up” button. Giving people fast access to numerous social media profiles might be a wonderful approach to attract more visits.
The marketplace’s storefront is an easy-to-use dashboard that boosts consumer interaction. From price history to the number of bids, It must display every possible piece of information that piques users’ interest.
This feature will assist users in finding their preferred things and will make the trading process easier and more efficient. In the same vein, by including search filters, customers will be able to discover their favorite things using certain keywords without having to navigate through the entire homepage.
Including this feature in your marketplace will make it easier for artists to develop and submit collectibles. Artists will be able to upload files and enter product information such as token name, tags, description, and so forth.
Buy and Bid
This feature enables the users to buy and bid for NFTs on the platform. The feature will also display the bid’s expiration date along with its current status.
Include a wallet that allows users to send, receive, and store non-fungible tokens. You may also provide your users the option of integrating their favorite wallets.
A rating system will help newbies find the most popular and trending NFTs quickly. The marketplace will also rate sellers based on several factors such as previous NFT deals and the number of listings.
A tool that allows users to trace their full transaction history should be available on an NFT marketplace. The feature must also offer information such as the total number of NFTs sold, the prior pricing of NFTs, and many other details.
Step #3: Work on the Development Process
Begins with the selection of essential aspects for your NFT marketplace, the following stage is to explore the technical implementation of the project. The development of an NFT marketplace is all about creating code with the appropriate technology stack.
Stack of Technology for Creating an NFT Marketplace
For the development of your NFT marketplace, you must select a suitable blockchain platform, a storage platform, front-end technology, and NFT standards.
Platforms for Blockchain
Finalize the blockchain platform for the marketplace. Ethereum, Solana, Cardano, and Polygon are among the major Blockchain platforms.
We Build NFT Marketplaces on All Blockchain Platforms Share your Project ideas With Us.
These are platforms where NFTs will be stored after minting. IPFS, Filecoin, and Pinata are some storage platforms available in the market.
You can create the front-end of your NFT marketplace using technologies such as ReactJS, AngularJS, or Vue.
Below listed are some most commonly used NFT standards:
Step #4: Start with the UI Development
In today’s world, where decisions are made in the blink of an eye, creating an engaging user interface may be the most effective approach to keep your users engaged with your NFT marketplace. The following are some critical phases in your marketplace’s design phase:
Develop a Wireframe
Wireframes are the conceptual layouts that are used to define the visual structure of a website or an app.
Select Style Guides
Style guides will give you a clear idea of how all UI elements of your NFT marketplace will be visually represented.
Mock-ups contain both visual and structural elements. These are designed by applying style guides to the wireframe which will showcase the high-fidelity design of your marketplace.
Create a Prototype
Prototypes are used to understand how your NFT marketplace will function. These are like the demo versions of your marketplace.
Step #5: Test and Launch Your Marketplace
Once you’ve completed the NFT marketplace development and design, it’s critical to run a series of tests to look for bugs or functional flaws. The marketplace will go through several testing phases in which many concerns will be resolved to ensure appropriate operation. After all, testing is completed, the marketplace will be made available to worldwide users.
Create the Marketing Strategy
The purpose of creating a business plan is to create loyal clients who will not only engage in repeat engagements but will also become champions for the platform. You may advertise your marketplace on social media networks such as Facebook, Twitter, LinkedIn, and Instagram. Blogs may be used to provide SEO-friendly material that will help the website rank higher in search engines. Other social media marketing and advertising techniques include paid campaigns such as PPC, adverts, subscriptions, and more.
How Much Does it Cost to Develop an NFT Marketplace?
Determining the total cost before beginning the NFT marketplace development is a difficult task. The overall cost of an NFT marketplace is determined by a variety of factors. However, the following are some of the most important ones that have the most effect on market development prices:
Size of the Marketplace
The intricacy of your marketplace is one of the major factors that play a crucial role in determining the estimated cost. Likewise, the size of your marketplace depends heavily on the number of features you incorporate into your marketplace. The bigger the size of your marketplace the higher the price will be.
Size of the Development Team
Whether you hire a Blockchain development agency or in-house developers, the cost will also depend on the size of the development team. The price may also vary based on the incorporation of specialist or niche developers.
The UI of the Marketplace
Another significant factor that determines the marketplace development cost is the user interface design. Your marketplace won’t garner enough eyeballs without an elegant user interface. To clarify. the cost will also depend on eye-catchy graphics and theme.
Location of the Development Team
The overall cost charged by a Blockchain development agency or a freelancer fluctuates from region to region. The availability of resources in a county, expertise, and experience of the company varies significantly.
Given the current popularity of NFT Marketplaces, developing your own NFT App or Marketplace may be a difficult but rewarding task. Moreover, some exceptional advantages of a marketplace for non-fungible tokens will assist you in deploying a profitable and growing marketplace for your users.
Being a trustworthy NFT marketplace development company, iByte strives to develop long-term connections with its customers. The organization enters into a confidentiality agreement with its clients to prohibit the leaking of any project-related information or ideas.
We have a skilled team of Blockchain experts that works dedicatedly to provide its clients with the best-in-class NFT marketplace development services. From Ethereum to Tezos, the team has sheer expertise in working on multiple Blockchain platforms.
Get in touch with us today for NFT Marketplace development services.