The popularity of non-fungible tokens (NFTs) and their adoption has grown and expanded significantly over the years. NFT trading volume in various marketplaces has increased rapidly with huge and increasing numbers. Many artists and celebrities have entered the NFT market. They have become references for many individual collectors, investors and the curious.
NFT marketplace platforms appeared to help creators sell their digital art-work in the form of NFT digital assets. The collectors are able to buy with coins and tokens these NFTs to become holders and owners. Many businesses and individuals even convert physical assets into digital assets in the form of NFTs to be tradable on the NFT market. We call these NFTs “digital twins”. As such, the NFT marketplace is rapidly evolving with sometimes very original and wild new innovative ideas and methods.
Non-Fungible Token
NFTs are known as digital assets that can represent any asset such as: digital paintings, music, domain names, or even tokenized versions of real assets (land, collectibles, paints, others). In particular, unlike other tokens, NFT as its name implies, each NFT is unique and is a non-fungible and non-interchangeable token.
These kinds of tokens are popular and famous because of the uniqueness and value they bring to the holder. Many of them are already worth millions of dollars.
Blockchain technology has given birth, promoted, supported and maintained the existence of NFTs, creating decentralization in the NFT market. In other words, the data of the NFTs are anonymous, stored encrypted and cannot be tampered due to the encryption with the digital signature of the creators or authors on the blockchain.
NFT marketplace
The NFT Marketplace is a place where investors are allowed to trade NFTs, and where blockchain companies, individuals, and content creators are able to create their non-fungible tokens. Everyone can issue their own NFTs and collections on open NFT marketplaces and they can even transfer them between different blockchains. In other words, NFTs may simply be transferred across marketplaces as long as the new platform supports the type of ported NFT.
A NFT marketplace is not only open to the creators but the collectors can purchase commercially available NFTs for a fixed price or through auction events. In conclusion, NFT Marketplace refers to a market where the users can sell, buy and stake the NFTs. Additionally, when the owner sells the NFT collections on the marketplace, the authors of that collection will get a commission for their royalties. NFT marketplace will also process these royalties to other creators who have made the NFTs on other platforms.
The established NFT marketplace is OpenSea, however as the market grows, new marketplaces started to appear and integrate between each other. Some of them are exclusive to one blockchain, while some of them interact with many of them at the same time.
NFT marketplace development
As the growth rate of NFT is increasing, NFT developers have been focused on creating and developing marketplaces for these tokens. Some marketplaces are built for any category of NFT while others only support high-end art assets, specific online games, or have been tailored to certain specific themes. It is important to remark that the extensive use of the technology and the availability of mostly generic marketplaces, gives space to innovation and new ways of creating trade experiences tailored to specific communities.
Developers cannot focus solely on their efforts to build NFTs. But they should pay attention to developing NFT marketplaces, where NFTs are bought, sold, and traded. Initially, NFT marketplace developers need to “keep their eyes” on the token standard to understand how the NFT works and operates. Due to the digital environment, NFT marketplace platforms need to be built with a user-friendly interface. So creators, collectors, investors… can easily buy, sell and exchange on the platform’s application. They also need to include a well-designed reliable and stable back-end and indexes to support blockchain technology. On the other hand, similar to other exchanges, NFT marketplaces should also provide exclusive support for users. This thing is to maximize user experience and solve current problems of users.
Developers shall build functions to support users in trading and creating NFTs taking into consideration to wisely::
1. Choose or create crypto wallets for the particular network
Any user on an e-commerce platform who wants to transact with NFT also needs the support of crypto wallets. Instead of not directly storing NFTs or digital assets, these wallets contain information redirecting to the place where the owners’ files are stored on the blockchain.
2. Promote auctions and sales
The NFT marketplaces may hold periodic auctions for new properties, limited edition properties or digital assets created by celebrities. The auction and sale feature allows NFT holders to display their tokens on the marketplace. The distribution is likely how an actual art gallery operates. Tokens on the “art gallery” are quoted at a fixed price.
3. Automate with Smart Contracts
The smart contracts feature allows buyers and sellers to issue NFT purchase terms encoded as digital contracts. These contracts are executed automatically and stored on the blockchain network. Once the terms are met by the buyer, the contract is self-authenticating and irrevocable.
4. Check the costs, and reduce the amount of interactions with blockchain, gas and others
For each digital transaction on NFT marketplaces, users will need to pay certain fees. The market owners can consider the costs related to energy and environmental protection costs, transaction costs, and cryptocurrency conversion costs…
In short, to develop NFT marketplaces, founders need to consider many factors. The things listed above are just some of those factors. However, they can be considered as the basics for the process of building these markets. Let’s strengthen the team and successfully build the strong NFT marketplace in the market.
About Dandelion Labs
Dandelion Labs is a blockchain product and research agency that leverages the power of blockchain technology. We support the businesses to create their projects in blockchain to power the next generation of decentralized commerce, paving the way for evolution and connection to the digital world. Stay update with our newest advancements by following us on social media:
- Website – https://dandelionlabs.io/
- Instagram – https://www.instagram.com/dandelionlabs.io/
- Facebook – https://www.facebook.com/dandelionlabs.io
- LinkedIn – https://www.linkedin.com/company/dandelionlabs
- Twitter – https://twitter.com/dandelionlabs