As blockchain technology grew throughout the years, it has given us new ways to run the world in the future. First, cryptocurrencies and now non-fungible tokens (NFTs) which have been explicitly making rounds in the digital world. But, both of these are contrastingly different. While cryptocurrencies can be traded for each other, non-fungible tokens cannot be, hence their name. With every application came associated with businesses that made money that are using various possibilities on offer. One such business hitting the notes right now is an NFT marketplace, a platform that sells multiple kinds of NFTs. So, many startups and brands alike have started venturing into the marketplace space for NFTs and are making fortunes. In this blog, we will look at a few important tips to be known before opting to create your own NFT marketplace.
First, What is an NFT Marketplace?
As said earlier, an NFT marketplace is a platform where NFT items are sold. Even though they might look like any other online shopping store for the user, the underlying technology differs. These marketplaces sell various NFT products such as artworks (digital/physical), music, in-game assets, videos, memes, virtual land, and even real-world products. Most of these platforms typically accept payments in cryptocurrencies. However, some platforms have fiat payment gateways to widen their customer base. Popular NFT marketplaces include OpenSea, Rarible, SuperRare, Solsea, Sorare, Decentraland, and NBA Topshot.
Prominent Features of an NFT Marketplace
- Shop Window – The shop window or the storefront of an NFT marketplace looks similar to any e-commerce website with items listed under various categories such as Trending, Featured, Coming Soon, Best-selling, and more. Details of individual NFT items are given on respective pages, and sometimes they even include additional information on the blockchain and the protocols so that users can ensure authenticity.
- Search Engine – Every marketplace portal should have a search engine that enables users to find the item they wish to buy easily. They must also include various filtering choices to make navigating the portal easier for the user.
- Account Options – Users should have an account easily on the marketplace platform. There should be separate sections for account creation and logging in for returning users. More importantly, these must be included in the homepage clearly as no one likes to navigate through a website just to log in or create an account.
- Listing Facility – Sellers should easily put their NFT items up for sale. A seller needs to include all the product details while listing an NFT.
- Minting Platform – Creators should easily create the NFTs for their items in the marketplace platform. Minting them elsewhere would add up to their costs, and beginner creators would not afford the whole process.
- Wallet – A marketplace dealing with NFTs needs a wallet for transactions from both ends. Some portals allow the integration of existing third-party crypto wallets such as Metamask or Coinbase. Others have their own wallets in which users should load cryptocurrency to participate as a seller or a buyer.
- Notifications – For an NFT marketplace platform to succeed, it is essential to let users know the latest offers, the upcoming drops, bids on their NFTs, and more through email and pushable options.
- Ratings – A successful NFT marketplace lets its users rate and review the NFTs they have bought to know the seller’s popularity and quality of the items.
- Customer Support – A support portal is what users need when they encounter a problem on the marketplace platform. A dedicated customer care portal should be one of the core features of an NFT marketplace.
Points to be Considered before Creating the Platform
- Token Standards – This is an important factor to consider when you are developing an NFT marketplace, as this would influence your sales. ERC-721 needs separate smart contracts for each item, even if they are copies of a single NFT. In contrast, ERC-1155 requires only the details of the main NFT and their number to be created.
- Nature of the Portal – NFT marketplaces can be centralized or decentralized, which can massively affect how your users perceive your marketplace. In a centralized marketplace, transactions occur under a central authority, whereas the trade is peer-to-peer (P2P) in a decentralized marketplace.
Steps Involved in Developing an NFT Marketplace
- Choose Your Niche – Before developing your NFT marketplace, it is important to have everything planned. Initial planning involves the niche associated with your new business. You would have to decide whether you are selling NFTs based on art, music, videos, sports, or physical assets. Also, you would have to decide whether you are selling NFTs on behalf of celebrities, an influencer, or a game, or you are trading as a general marketplace.
- Design Your Portal – It is important to plan on your design more than anything else as the process involves spending a lot of time and resources. You can design your user interface (UI) and user experience (UX) using in-house experts or hire a company that has experience designing such components. An appealing design promises greater user satisfaction and popularity.
- Develop Your Portal – Building on a design idea is important, but doing the whole portal work is different. Front-end development plays a huge part in making your NFT marketplace platform work seamlessly. Back-end development also plays an indispensable role as good work in the back-end ensures security and robustness. It is essential to employ an expert firm that has pioneered the art, as hiring in-house developers with such experience is difficult nowadays.
- Test and Deploy – Testing is critical for software development. NFT marketplace portals, bugs, errors, and any other defects can affect the portal. These should be tested for and removed from the portal before deployment. Some support might be needed if new defects are detected, or performance issues arise.
- Give Updates – As the user base widens and as more issues arise, frequent updates are necessary to keep the platform competitive.
Also Read, NFTs are Changing the Playing Field of the Sports.
After going through the blog, if you are thinking about starting your own NFT marketplace, go about it without any further ado. The NFT business today is very flowing, and with more people learning about them, NFT-based products will only gain popularity. If you are looking for some assistance in developing your new marketplace, consider approaching an expert blockchain development firm specializing in NFT marketplace development.