Everyday, we find alluring stories about NFTs and blockchain technologies on social media pages entertaining our curiosity. While this could be the current scenario, studies indicate that the current market size for NFTs would expand exponentially in the upcoming years by 35%. This could be the right time to venture into the NFT realm and set a stage for intriguing business. NFT Marketplaces are the ideal source for the business where users can engage in trading the tokens and remunerate for their works. Therefore, in this blogpost, let’s discuss the NFT marketplace in detail, and explore how good a business choice it can be.
NFTs and Types
NFTs (Non-Fungible Tokens) are digital assets that work on cryptography and blockchain technology.
Today, NFTs are used in several places for exchanging anything that’s valuable. From songs, gifs, artworks to real-estate business, everywhere, NFTs are used to proclaim authenticity, originality and make the transfer of ownership simple and easy. Fabrication of ownership is highly impossible since the details are stored in the digital storage ledger of blockchain.
A NFT marketplace is a trading platform that facilitates users to buy and sell NFTs. It works on blockchain technology and allows trading through smart contracts. Some of the most successful and efficient NFT marketplaces in the world include Opensea, Rarible, etc.
NFT Marketplace Types
NFT marketplaces differ based on the NFTs they show to the people. Some NFT marketplaces will have a mixture of NFTs to show while others will adhere to a niche.
Therefore, it’s crucial for you to decide which type of NFT marketplace you want to tinker with.
Benefits of NFT Marketplaces
Some of the benefits of an NFT marketplace include:
A Transparent Record of Transactions
NFT marketplaces work on blockchain technology. Therefore, the transaction details of each and every NFT presented will be under the public spotlights.
A Decentralized Platform
An NFT marketplace empowers decentralization to sell and trade NFTs. Therefore, it gives people a chance to independently pay and trade NFTs.
Since NFT marketplaces allow trade of NFTs through smart contracts and blockchain technology, they are secure and transparent. Every record of a transaction made is stored.
Confirmation of Authenticity and Originality
Since NFTs are unique and have a digital code to confirm its authenticity, the trading done in a NFT marketplace is more trustworthy.
How Does a NFT Marketplace Platform work?
Now, before getting into the business of exploring the steps involved in NFT marketplace platform development; let’s put ourselves in the shoes of your users and figure out how a NFT marketplace platform works for them.
Initially when a user visits a NFT marketplace platform for the first time, they sign up and create an account. This step is followed by choosing an appropriate NFT wallet. After choosing the NFT wallet, they will engage in creating their own NFTs and presenting them to everyone. While presenting their NFTs, they will set the mode of payment, bidding prices for their NFTs.(if they decide to auction their works)
After all these steps, if they succeed in selling their artwork/ NFT asset to their customers, then a transaction will be recorded with a smart contract becoming effective the moment the sale is made.
Gist of Features to Consider
Now, having seen how a NFT marketplace works, let’s explore the features that make up an NFT marketplace.
Storefront is the feature that decides how a NFT marketplace looks. From how the NFTs get listed to how they can be viewed by the users, everything is decided by how the storefront is designed. It specifies all the necessary details (like owner details, bids, previews, price history records, etc).
Token Search Bar
Token search bar facilitates a quick way to search through the contents of a NFT marketplace. From searching to categorizing the NFTs, it helps in keeping a NFT market place organized.
Filters are another feature that helps in viewing the NFTs presented on a NFT marketplace in detail. From stating the details of the NFT creator to denoting the price of a NFT, filters help in exploring the contents of a NFT marketplace in depth.
Listing helps in adding descriptions, titles, tags to the NFTs presented in a NFT
This feature allows the users of a NFT marketplace to track and denote the status of their NFTs.
A wallet is a crucial feature of any NFT marketplace. It helps in storing NFTs and cryptocurrencies and initiating transactions. It acts as a base for all the NFT purchases done in the marketplace.
Buy, Bid, and Auction
Buy, Bid, and Auction feature facilitates the trading of NFTs to happen through auctioning and bidding between NFT sellers and buyers in a marketing place.
Security is an important feature of a NFT marketplace. The more the security and transparency a NFT marketplace offers, the more will be the number of users who will sign up to use it with credibility.