An NFT is a digital asset with a one-off code that may be used to identify it and is often unusual or unique. Although NFTs have been around since about 2014, they have gained popularity as a mechanism of buying and selling digital assets in recent years due to the growth of cryptocurrencies and digitisation. They are essentially digital collectibles.
Based on blockchain technology, non-fungible tokens can represent a variety of digital goods, such as songs, articles, playlists, and in-game houses or other objects.
Why then have they gained such a following? While it’s true that anyone may view these digital products online, an NFT uses blockchain networks to establish and monitor ownership in a way that is absolutely impervious to change and error.
However, a dedicated NFT marketplace is required in order to exchange NFTs. Therefore, the future is promising for creative companies wanting to establish an NFT market. NFT marketplaces are online platforms that let users store, create, and (in certain cases) purchase and sell NFT tokens, frequently at a set price.
Why Is The Need For NFT Marketplaces?
The main distinction between NFTs and traditional or digital currencies is that the value of each token is based on its unique properties rather than being set at a fixed rate. This suggests that they cannot be exchanged like for like.
Because these non-fungible tokens cannot be bought or sold through either centralised or decentralised crypto exchanges, the only option to trade NFTs is through an online NFT marketplace. As a result, NFT marketplace development will grow increasingly profitable for enterprises involved in NFT marketplace development.
Advantages Of NFT Marketplace
NFT marketplaces produce the same advantages as blockchain-based marketplaces do, including:
1. Transparency – Because blockchain transactions are real-time and immutable, they can’t be altered. As a result, transactions made in an NFT marketplace are completely transparent.
2. Decentralization – It allows you to spread and replicate all data throughout the network’s nodes. Additionally, the network is updated and each peer has access to examine the information whenever a new block is added.
3. Security – Blockchain gives NFT marketplaces built-in security features, cryptography, and consensus algorithms to protect against online fraud, breaches, and other cyber dangers.
Process Of Developing The NFT Marketplace Is Described Below
First, it’s important to understand that, generally speaking, specialised NFT marketplaces are more desirable than those that are more comprehensive, such as an NFT platform that focuses on digital arts.
NFT marketplace development providers can assist businesses in developing marketplace applications that enable NFT customers to effectively do the tasks they need using a simple interface. It’s important to include the following features in your list of needs when thinking about your NFT platform’s capabilities:
- NFT Minting
- Listings and collections creation
- Listing status and token details
- NFT Filters
- Advanced search capabilities
- Bid-and-Buy functionality
- Wallet integration
- Ratings and reviews
Once your target market has been identified, you may use the experience of the NFT marketplace development business you’ve selected to assist you realise your concept. This partner will be able to help you during the whole development of the NFT platform, which normally entails the following steps:
1. Selecting your blockchain – The most popular ones include Ethereum, Binance Smart Chain, Solana, Cardano, and Polygon.
2. Defining the project UX Design – The secret to creating a successful NFT marketplace platform is to simplify and optimise your UX. You can design an intuitive, uncomplicated, and enjoyable user experience with the aid of an NFT marketplace development business.
3. Front-end development – You may design the framework for your NFT platform with the assistance of a seasoned NFT marketplace development company, ensuring improved functionality and simple user uptake.
4. Implementing smart contracts – Smart contracts are used to handle every operational work in an NFT marketplace. All of the NFT platform’s processes are started by them. To get things started, you can work with an NFT marketplace development business to design and implement these smart contracts.
5. Setting up storage – Because it is expensive to keep data in the blockchain, all NFTs metadata related to a certain token is often stored elsewhere. The InterPlanetary File Systems (IPFS), a peer-to-peer network for gathering and distributing data in a distributed file system, is one of the solutions.
6. Integration – This phase entails creating front- and back-end interfaces to communicate with the smart-contracts business logic installed on the blockchain network.
7. Testing – Testing is a vital stage in the creation of the NFT market, enabling developers to find and fix any flaws prior to launch.
8. Deployment – Your NFT marketplace platform is prepared for production after extensive testing across numerous iterations.
The above-mentioned processes are necessary for building an NFT marketplace from scratch with the aid of a knowledgeable group of blockchain software engineers. However, you can also build a White Label NFT Marketplace, which is essentially an exact replica of an NFT marketplace that can be later customised to meet your needs.
What Are The NFTs’ Commercial Use Cases?
NFTs are currently the subject of considerable buzz, but they are more than just a passing trend. NFT marketplace development will therefore become much more important in the virtual world than it is at the moment.
In addition, NFTs have some intriguing business applications outside of the arts and in-game commodities trading, which is enticing for companies considering expanding into NFT marketplace development. Here is only a small sample of them.
The gaming market is enormous. The market had a value of $180 billion as of 2021 and is expected to soar to a mind-boggling $256.97 billion by 2025. In games like the wildly popular Axie Infinity, an NFT platform and battle game where players may gather and trade tiny digital animals called Axies, one area of gaming that has quickly evolved is the trading of digital commodities.
With a 24-hour trading volume of $600,737,442 USD, the Axie Infinity trading price is currently $63.89 USD. Gamers who excel at their craft may eventually gather, breed, and trade their characters, leaving the game with cryptocurrency in their virtual “bank.”
The uptake still hasn’t hit its peak, which is interesting given the lengthier production lifespan of a game compared to, say, a digital artwork. As a result, it can be quite profitable for NFT platform developers to join the bandwagon right now.
Decentralised finance, or “DeFi,” is a concept that is built on the blockchain network. In the age of cryptocurrencies, NFTs can be used as security to settle debts.
So let’s say you used a significant amount of cryptocurrency to buy a digital painting or an in-game item. Similar to a digital pawnshop, this can be used to cover a debt and then returned to you once the loan has been settled. And with smart contracts, the NFT is immediately transferred to them if you are unable to pay your obligation, therefore from the lender’s standpoint, there is no risk if you default on your loan.
Early in 2021, the online clothing retailer RTFKT sold a digitised jacket for more than $125,000. Then, in October of last year, Dolce & Gabbana sold a set of NFT clothes for $6 million. Red DAO, a decentralised crypto-community organisation that makes investments in digital fashion, was one of the buyers.
And there are an increasing number of small, creative NFT-first fashion companies that are creating digital clothing, often alongside actual items, to market to clients who are knowledgeable about cryptocurrencies.
Virtual and augmented reality technologies can be used to wear this virtual couture, which was even displayed at London Fashion Week. Haute couture is the ultimate collectable, therefore it only makes it natural that it would transition into the NFT, or digital collectable, space.
The Last Wise Words
The development of the NFT marketplace is expected to soar as society increasingly moves online. If you’re wanting to create your own NFT platform, you should think about the features listed above, identify your target market, and pick the best software provider to assist you in creating your NFT marketplace and realising your idea.