When the NFTs concept was launched in the market, its craze among the people increased gradually. Token creators, profit collectors, and investors, all sorts of users got infatuated with its concept of trading multi-media and artistic assets as tokens. On top of that, keeping the ownership secured was guaranteed by its makers.
Non-fungible tokens convert assets such as art, music, and even some snippets of a movie or a sport. These digital holdings are highly demanded by investors to want to purchase or sell for a hefty amount. Looking at the stats of the 2021 first quarter, the NFT marketplace projects totaled up by 2100%. And last year, the Etherem-based blockchain market grew by 300%.
Likewise, as you at exploratory pursuit to create the marketplace project, we explain the concept of NFT Marketplace and how to create it.
What is an NFT Marketplace?
NFT, which stands for Non-Fungible Tokens, is a way of tokenizing assets. In general terms, NFTs are digitized tokens that are converted from realistic assets to enable the flexible transfer of ownership on blockchain-powered platforms. These assets can be anything, whether it is art, finance, or even real estate.
The marketplace platform is a way for users to legally trade, buy, or transfer their ownership rights online. Because NFT platforms are a decentralized network where random users meet and buy or sell the holdings with a secured nexus.
Now that you have conceptual clarity, you will read about its features and how to create an NFT marketplace.
Some Popular Examples of NFT Marketplace
The top NFT marketplace, OpenSea enables a space for the NFT users to tokenize various assets – art, fashion, sports, music, games, and other collectibles in multi-media form.
2. NBA Top Shot
A blockchain platform for all the sports fans who want to trade with favorite Basketball ‘moments’. NBA top shot is licensed under the official National Basketball Association (NBA) license. Although, it does not have to create or trade the assets. Users can only sell or buy these clips.
Rarible is an Ethereum-based blockchain for selling, creating, and transferring ownership rights to digital artwork. It also includes several categories of collection for open to change any asset.
It is an engaging blockchain platform that acts as a gameplay app. Here, the users can earn special tokens known as Axie creatures that have real value. Players will simply have to win the battles and trade these tokens.
What is the Working of the NFT Marketplace?
For many people, they still cannot grasp the NFT’s working and how it is processed. This is why a common question persists in these minds, ‘How do these NFTs marketplace function?’, ‘What is its base of working?’. The answer is pretty simple – Smart Contracts. These contracts ensure security and data authenticity.
Besides smart contracts, these are the functions that make the Marketplace app used by investors.
1. NFT creation
Before creating and minting the art as an NFT, users have to comply with the smart contract conditions. These terms and conditions include the token qualities, ownership details, and metadata.
2. Minting and Possession
Here, the NFT minting takes place through smart contracts as it avails a unique token ID and the creator’s wallet address. Also, it maintains the ownership and token ID records.
3. Transaction and Withdrawal
Through smart contracts, transactions and ownership rights are transferred from the seller to the buyer. It specifies the conditions, upon which the agreement takes place and then the transaction is safely carried out within the wallets.
4. Listing and Selling
The creator can list it for trading once the token is minted on the marketplace. As the blockchain is operated through smart contracts, it will include functions like royalty fees, price setup, terms and conditions, etc.
5. Verification and Validity
Smart Contracts validate the NFT’s authenticity by metadata linkage and publishing its real-life content such as images, videos, and music files. In this way, the buyers can check these attached files.
How to Create an NFT Marketplace?
Now that you have understood the workings of NFTs, it will become easier to decide on approaching the right app development company for the project. Meanwhile, there are some essential things you need to prepare for.
In this way, explaining your project needs can give an ideation and an overview of how to create an NFT marketplace app.
These listed steps will keep you app ready.
1. Choose an Industry Niche
Before looking for an NFT Marketplace development solutions, you need to decide on a particular domain. This will allow the users to tokenize and compile with the trading regulations accordingly. You can choose from one of these niche markets:
- Online Education
- Investments Projects (stocks and real estate)
- Video Games
2. Look for Suitable App Development Services
Shortlist a number of custom software development services that can be suitable for the project. Also, interview and ask them about the cost of NFT marketplace development, and the process of developing the app.
In addition, maintenance is the key to retaining the users. So enquire about its additional charges as well.
3. Think of the UI/UX Design
Remember, each app’s uniqueness is determined by its features and theme design. To do that, explore other similar apps and ideate the kind of features you want to outline in your NFT marketplace app. Simpler, user-friendly functionality will keep the users engrossed.
4. Plan for the Full-Stack Development
Hire app developers to build front-end and back-end. For the client-server side, where the users can trade their NFTs. On the server side, it can streamline and manage all the tokens as in a decentralized platform.
5. Test and Launch the NFT Marketplace App
At this final stage, check the functionality of the application. Rectify all the errors, bugs, or glitches by installing the app replica. After the perfected app, launch it in the app stores.
Key Features to Consider for NFT Marketplace Development
1. User Registration
A beginner user has to register their account with personal details to direct all their transactions and withdrawals. The details include email, phone number, and even social media account.
2. Shop Window
This displays an overview of the digital assets such as title, description, ownership, pricing, and so on. At some NFT marketplaces, it clarifies the protocols for the verification of NFT’s availability.
3. Search Engine
It eases the search for the kind of tokens users look for. The app categorizes different assets such as art, music, photos, videos, etc. In this way, people can quickly find their desired page.
4. Reviews and Ratings
Before making the final purchase or selling, the users can check the authenticity of the seller/buyer. This can be checked through detailed reviews and ratings that range between 1-10.
5. Trading History
People can check their records of transactions, withdrawals, and trader’s information. This will allow the users to understand their purchase history.
6. Push Notifications
This feature enables the user to know about the current activities such as new posts, status changes, new bids, and many more.
7. Support Services
At times, users get perplexed about how NFT trading and purchase is done. Also, there are a lot of scams that occur around. For that, they can take the help of a call center, email, or even a chatbot.
What Will be the Estimated Cost of NFT Marketplace?
Like any other app development, developing an NFT marketplace needs to hire app developers. For that, you will need the right custom software development services that can offer a qualified team for the project. Moreover, in this growing competition, they can suggest you well on methods to monetize your app.
However, these services differ from company to company as their experience, expertise, availability, and selective services have their value. In the NFT marketplace app, below below-mentioned components would be required to make the platform secure and scalable.
- Your Project Workflow
- UI/UX Design
- Software and APIs integration
- Technology stack
Summing up all the listed elements, and executing them in the application would cost around $50,000 to 150,000. Fort maintenance and support, and additional charges of around $50,000 can be expected from the mobile app development company.
NFT Marketplace is a booming industry. As you remark on the current scenario, token users and investors are rapidly growing since they are keen to explore the platform. Benefiting from it, you can also build one exemplary app amidst these flourishing opportunities.
Moreover, the fact being NFT is one of the top blockchain platforms is competent to make the substantial turnover you are aiming for. Even though, building a blockchain platform is complex and time-consuming. Being that it requires high-level security and streamlined networking, an experienced mobile app development company can offer blockchain-savvy solutions for your project.
Also, for many iPhone users, the accessibility differs because of its operating system functionality. Keeping that in mind, hire iOS app developers with excellent knowledge in this domain.
What are the latest trending NFT Business Ideas?
NFT trading is a fast-growing activity for users. While delving into this domain, businesses are experimenting with the Ethereum-enabled blockchain technology. So as anticipated, trends like Virtual world tokenization, NFT cryptocurrency, NFT trading games apps, and NFTs for art will be going strong in the coming times.
How much does it cost to build a NFT marketplace?
The service cost depends on the NFT marketplace requirements. If it is built from the initial stage along with the blockchain network, it would cost around $150,00. But if you want to integrate your blockchain like Ethereum, additional charges of $50,00 are expected to be spent in NFT marketplace development.
Is the NFT marketplace profitable?
Creating an NFT marketplace will be a pursuit to give a long-term benefit. As it will be a platform to provide fluent token transfer, your NFT platform can generate revenue through monetizing models like commission rate. Commissions are different according to the platform, but generally, they range between 2% to 10%.