The popularity of online marketplaces for digital collectibles is increasing by the day. If you also want to enter the market, you need to develop a market on your own. We already know about Blockchain technology and different cryptocurrencies, and many people use various marketplaces to buy or sell products.
Such a marketplace that functions as a public Blockchain platform is the non-fungible token or NFT. Although this platform is not fully mature yet, its growing popularity is the reason why developers and entrepreneurs create this market these days.
If you are wondering how to launch your own NFT development platform, please read this blog. We have covered everything you need to know when developing such a marketplace.
What is NFT?
Non-Fungible Token, or NFT: It is a digital token that is designed to function as a digital certificate of property rights for physical or virtual assets, such as photos, tweets, videos, codes, etc. Each NFT is a unique token, a non-fungible and indivisible digital asset. This means that NFT is different from Bitcoin and Ethereum, so they cannot be traded or used as payment methods.
Why Create an NFT Marketplace in 2023
With all the talk around the sphere, why build an NFT marketplace? Let’s take a look at some statistics showing the prospects of developing an NFT market in 2023:
- The global NFT market is estimated to be around $3 billion by mid-2022. In 2020 alone, the NFT market was valued at $100 million. We are talking here about 30x growth in less than 2 years.
- The most expensive NFT, Merge, sold for over $91 million.
- About 23% of millennials collect NFTs and consider them a hobby or an investment. Nearly 8% of Gen X, 4% of Gen X, and 2% of Baby Boomers also collect NFTs.
- Total NFT sales are estimated to be around $1.8 billion per month. The most popular categories are metaverse, collectibles, and art.
How Does an NFT Marketplace Work?
A place to store, buy, and sell NFTs is also necessary, just like any other physical store. An NFT marketplace stores NFT assets and combines a user-friendly interface with very powerful back-end properties that support the underlying blockchain technology.
In running an NFT marketplace, NFT creators and collectors play an important role. According to a well-known custom mobile app development services provider, all NFT platforms share a similar workflow. First of all, a user needs to register on the platform and install a digital wallet to store NFTs.
Users can then create their assets by uploading items to showcase their work. The user can also select which payment tokens they would like to accept through it and set a fee if the platform suggests it. The listing of items for sale is the next step in the workflow. A transaction is created when an item is listed for sale to initiate a personal business smart contract for the user’s wallet.
The platform may require moderation of the collection and the NFTs will be listed after approval.
Basics to consider while developing an NFT marketplace
The following are the basics that you should consider when developing an NFT marketplace platform:
1. Transparency
Your NFT marketplace should have transparency to give users a clear view of all transactions. The Blockchain network makes sure that an error-free payment procedure provides a seamless transaction experience.
2. Security
It is a powerful feature in an NFT market on the transaction of tokens between merchants. Built-in security protects merchants from lost transactions and other unnecessary features.
3. Decentralization
It allows you to copy and distribute all the information to different Blockchain networks. At the time of a new block introduction, the network updates its Blockchain to make changes.
4. Smart Contracts
No commission fee is needed to initialize smart contracts. You can do this by signing the contract online to avoid fraud and reduce intermediaries.
How to Develop And Launch an NFT Marketplace Platform?
If you want to develop an NFT art marketplace for your business, consider following these steps:
1. Choose a Niche Properly
Choosing a specific niche helps you start your NFT market development project. If you have a general concept, discuss it with a Blockchain development solution to make the strategy and estimate the time frame needed for market creation. According to experts, you should aim for a vertical market instead of a horizontal one.
2. Define the UI/UX Design of Your Project
UI/UX design is essential when building a marketplace. Its user interface should be simple. A good UI/UX improves usability and presents a great look and feel to the platform.
3. Move to Front-end Development
If you have an idea, it’s time to implement it in your design. Choose a reliable framework to meet your goals. Hire an expert NFT developer to ensure great functionality and credibility.
4. Use the Smart Contract Token Generator
When building an NFT marketplace, back-end development doesn’t look the same. Since the NFT market is a decentralized platform, most of the data is authenticated on a Blockchain.
5. Test and Implement
It is the most crucial step in developing an NFT market application. During this stage, you must identify and resolve all delays. Software testing ensures that the project is running correctly.
Post-launch support is also required to reduce bugs and ensure quality performance. In short, this step ensures the credibility and excellent functionality of the application.
Launch Your Own NFT Marketplace Platform
Today, non-fungible tokens are attracting more and more attention. They arouse great curiosity among keen collectors who strive to obtain unique digital objects. For this reason, starting an NFT business looks like a promising venture for early adopters. You now know everything about non-fungible tokens from their origin to how to create an NFT marketplace. So, what are you waiting for? Connect with an NFT marketplace development company to turn your business idea into a profitable reality in a short period.