NFT Marketplace Development — A Guide from Guardians
Is there an industry that provides a massive income for talented individuals like artists & composers? NFT marketplace development might be a good fit. It offers a unique medium to showcase individual intellectuals and creative collectibles. In addition, NFT platform development facilitates effective digital asset management. With augmented and virtual reality, non-fungible tokens play an essential role in art and games.
As evidence of the industry’s growth, look at the NFT cap in 2020, which reached $338,035,012. In this article, bitsCrunch outlines all the aspects of creating an NFT marketplace platform development. No matter whether you’re a newbie or an existing business, get your dose of vitals about the NFT marketplace right below.
What is an NFT marketplace?
Despite their intangibility and non-fungibility, NFTs still have specific monetary value to their owners. There wouldn’t be a commercial incentive to popularize NFTs otherwise. So, what is the best place to trade NFTs? And how can you showcase those items for users? Considering that they are distinct assets, you cannot trade NFTs on regular cryptocurrency exchanges. That is precisely where you need an NFT marketplace development service.
NFT marketplaces are decentralized platforms. They provide a scope through which NFT holders can store and trade their assets. Recent years’ data show an explosion in the number of NFT marketplaces. Some offer specialized tokens, and others open up to anyone interested in participating in the NFT market. In the pool of such options, how would you know the right choice? There are three major distinctions in an NFT marketplace. It could be a universal platform, a niche platform, or simply galleries. Learn more about them.
Universal NFT Marketplaces
World-known universal platforms like Polygon NFT marketplace development, Rarible, Opensea like NFT marketplace development, and Mintable offer various NFTs from domain names to music, digital art to game collectibles, etc. The system is open to new users, allowing users to create and sell Ethereum-based assets.
Specialized NFT Platforms
A niche or specialized NFT platform attracts investors seeking specific NFTs. For instance, Valuables is a platform where tweets are exchanged for NFTs, while Looking Glass Factory offers digital holograms. The Sandbox Marketplace includes only NFT assets from their platform, while Foundation is a high-end marketplace that features auctions for invite-only artists.
While NFT marketplaces allow you to buy or sell tokens, NFT galleries do not. These galleries are similar to traditional galleries where owners display their NFTs and organize thematic exhibits. It is to popularize the NFT concept.
Although these distinctions help you take your first step towards an NFT marketplace development, the question still exists about their popularity. Let’s get some answers.
NFTs: Why are they trending now?
Everything is connected — not a dialogue from the famous Manifest series. But that is the impact of the crypto boom and how blockchain has left an imprint on everything it touches. It’s a technology-based alternative to traditional banks and financial services. Thus, blockchain development services, including NFT, are expected to flourish in the coming years.
The NFT market’s capitalization is proving to be of increasing interest based on statistical data. What started as a $40 million NFT investment in 2018 has projected to be $141+ million in 2019 and surpassed $338 million in 2020. In 2021, the NFT market cap has risen by over $100 million and is estimated to reach $432 million. So, why? Why such a craze? Is it hype, or is it an actual worth?
- The news is awash with news of artists selling crypto-art pieces for millions of dollars! Yeah, you read it right! They took the risk, and we think it paid off!
- Besides just being valuable, this mega blockchain is a big hit because the flooding fee of bitcoin has diverted the users’ attention towards it.
- COVID-19 also sparks user interest. In light of the pandemic, people are hesitant to visit, buy, and sell physical art. Lack of people visiting an art gallery results in a lack of revenue and attention it deserves.
- On the other hand, a digital art piece can gain much engagement and traffic in just a few seconds.
Now we know why it is trending. With increasing investor attention and a widening scope of NFT offerings, the future of NFTs looks positive. The crucial drivers of market growth are:
- The hype surrounding blockchains, cryptocurrencies, and digital assets
- The ease of creating, buying, and selling NFTs
- Investment readiness of people in unique artworks and digital art
It is enough to recall Cryptokitties’ $100k price tag, or Crossroads’ $6.6m sales, or the $69 million Everyday’s deal. One of the world’s most famous digital artists, Beeple, sold NFTs worth more than $100 million, while Crypto Punks’ collectibles sold for over $1 million each. Clearly, there is a demand for NFTs. So is the need for an NFT marketplace development solution.
How do NFT marketplaces work?
In what ways does an NFT marketplace platform function, and how are revenues generated? Putting it another way, what’s the point, and is the effort worthwhile, of making your own tailored NFT marketplace?
By generating NFT tokens on the blockchain platform, such marketplaces receive a commission on NFT transactions and gain revenue from gas fees paid by artists. From the user’s perspective, the NFT market procedure looks like this:
- A new user registers on the platform.
- The user creates a crypto wallet or links an existing one.
- The artist sets the price for their NFTs on the Ethereum (or other) platform.
- The marketplace checks and validates the user’s collection before displaying it.
- A bidding auction is held if buyers wish to purchase the NFT.
- Upon the close of the auction and the best bid is chosen, the NFT marketplace then arranges an innovative contract-based transfer of the NFT for the new owner.
Didn’t we just break it down for you — no rocket science behind the stage. So, what features should your NFT marketplace platform development offer?
Features of an NFT marketplace
NFT marketplaces are fundamentally blockchain-based, so they need specific features and functions essential for a robust marketplace to be effective. Ideally, your NFT market project should include the following:
All that and more. What more? The security. All these features need to be free from scams, wash trading, and the absolute value of digital assets — the reason: A holistic and secured platform is the very core of an NFT marketplace platform development.
The above elements help develop a plan for the NFT marketplace. But it would help to understand the technical options for each stage. That means some tech stacks that help you create the NFT marketplace platform.
The technical landscape for NFT marketplace development
The technical landscape is about the technologies, tools, and platforms that help you get closer to the implementation of NFT marketplace development. What do you need for that? Scroll down.
The base- Blockchain platforms
A blockchain platform will be the base for your NFT marketplace system. Developers of NFT platforms choose Ethereum due to its publicly verifiable transaction history and token metadata, making transactions on the platform more secure. NFT owners can transfer their tokens efficiently through all Ethereum-based NFT marketplaces. Few other viable options are Polygon, Ripple, and Stellar.
Where do you store?
The first step to launching an NFT marketplace is deciding where the NFTs will be stored. A good choice would be the IPFS hypermedia protocol or the Filecoin network. Pinata is another option since it is compliant with IPFS and provides secure, verifiable NFT storage.
What standards should they meet?
NFT supports the following standards: ERC-1155, ERC-721, goods, FA2, and TRC-721. Creating a marketplace for each of them presents specific technological challenges, so your development team must select a viable option.
What about the front-end framework?
Vue, Angular, and React are the most popular front-end development frameworks for NFT marketplaces. They’re all simple to use and coder-friendly and deliver fast results with sleek, easy-to-navigate designs.
Once a fool-proof tech stack is in place, it’s time to create an NFT marketplace. Is it a tough nut? We guess not.
Creating an NFT marketplace
The process might look complex in technical terms, but we can simplify and streamline it. The following steps can help layout your plan:
NFT marketplace, the distinctions, how they work, features, technical requirements, and creating an NFT marketplace platform. Now, how bitsCrunch is changing things for the better in all this?
How can bitsCrunch change the game?
In a nut-shell, bitsCrunch acts as a guardian of the NFT ecosystem. It offers buyers and sellers potential tools like Scour, Crunch DaVinci, and Liquify, to identify digital wash trading, asset forgery, the true value of assets, and respectively. Yes, bitsCrunch’s securing services can be integrated in any of the NFT marketplaces with a sense of protecting the authenticity and provenance of the artists and the NFT assets. Also, bitsCrunch keeps you posted on all the latest NFT trends and updates on Unleash NFTs — Launching Soon. Are you interested in knowing more about the tools or NFT market cap? Get in touch right away.