NFT Marketplace – How can they be developed?

Since the arrival of blockchains as an academic concept in the 1990s, they have been seen as a game-changer. They actually changed how finance is perceived when they were first implemented through the legendary cryptocurrency Bitcoin. Suddenly people were excited about the possibility of digitizing life in the form we had previously imagined through literary content. Such thinking raised the standard and range of blockchain applications as time went on. Then, slowly, several applications related to cryptocurrency started up their operations.

In addition, several blockchain-based applications such as non-fungible tokens (NFT), decentralized finance (DeFi), metaverses and decentralized autonomous organizations (DAOs) successfully came through.

Non-fungible tokens in particular have attracted a massive market after their sales had increased by extreme proportions within months. While the success has been mainly attributed to early NFT adopters, creators and celebrities, the real credit goes to NFT marketplaces that handled the sudden surge effectively.

Therefore, it can be said that running an NFT marketplace can be a great business opportunity in the current crypto world. But owning such a platform requires a great deal of diligence and patience, since creating a community around your platform involves hectic work right from the first step.

What is an NFT Marketplace Platform?

An NFT marketplace is a platform where people can buy, sell and trade assets backed by non-fungible tokens (NFT). They have orchestrated an imminent role in driving NFTs to the levels they are today. One can find all kinds of NFT resources on these platforms, such as art, music, video clips, in-game assets, trading cards, memes, profile picture punks and more.

Some NFT marketplaces focus on horizontal trading, selling different types of NFT assets to concentrate on a generic audience. Others focus on running a platform based on vertical trading, where specific NFT funds targeted at a niche audience are listed.

Examples of horizontal NFT marketplaces are OpenSea, Rarible, Solsea and LooksRare. Platforms such as SuperRare, Foundation, Sorare, Decentraland, NBA Top Shot, FanCraze and Jump. trade are marketplaces that focus on a specific set of target audiences. Trades on these marketplaces are usually done in exchange for cryptocurrencies, although a few of them accept cryptostable coins and fiat payments to expand their customer base.

What is the user flow in an NFT marketplace?

• First, users should create their account on the portal, regardless of status (buyer/seller), and connect the crypto wallet or fill cryptocurrency into the built-in wallet.
• Next, the merchant should create NFTs to back their digital assets. They must provide sufficient information about the NFT, such as details, costs (opening bid price/fixed price), deadline and benefits.
• The marketplace administrator will moderate the NFT asset and if the items follow all their regulations, they are listed on the sales portal. The platform may also post the NFTs on a main page for a fee.
• A potential buyer looks at the NFT and the details to place a bid or is willing to pay the price mentioned. The bid amount is taken from the buyer’s crypto wallet.
• If the seller finds the offer to their satisfaction or the deadline is reached, they can accept the offer, which releases the NFTs to the buyer and the amount is transferred to the seller.
• During the transaction, apart from the gas fee, a transaction fee may also be charged, with many different combinations possible. The fees are usually taken as a percentage of the final sale. The money is used for the platform’s maintenance and operation.

Key features of an NFT Marketplace platform

• Shop front – The user portal should contain all necessary information about NFT resources, such as descriptions, ownership history, bids, previews and more.
• Search engine – The marketplace should contain an advanced search function, where users can easily search for the NFT goods they need. A faster execution here is crucial as this plays a significant role in determining the user experience.
• Options for filtering and sorting – The NFT marketplace should also have a widespread filter option so that users can easily get relevant results and sort them easily according to their preferences.
• Listing portal – Creators on an NFT marketplace should be able to easily create and list their NFTs. A dedicated portal will allow sellers/creators to list their NFTs by providing necessary details including descriptions, sales mode and tags.
• Status portal – This feature will be useful for a seller when they post their NFTs for sale as it will take some time to moderate. It will be beneficial for a seller who wants to sell a collection of NFT collectibles.
• Bid portal – Buyers on the NFT marketplace should be able to easily place bids and update themselves with the current status. It is important to set a deadline as this increases interest in the NFT goods that are auctioned on the platform.
• Crypto wallet – It is a must-have feature for any NFT marketplace as they play a significant role in processing transactions. Although users can login using their wallet, it is recommended to use a built-in wallet for security to offer a seamless experience to users inside the platform. You can either build it from scratch or coordinate with a popular wallet provider like MetaMask or Coinbase.
• Ratings and reviews – It is important to have these functions so that buyers can know which sellers are the best before making a purchase. In particular, newbies to the NFT world will feel at home when they can judge the value of an NFT item based on the ratings and reviews provided.

A step-by-step guide to developing an NFT Marketplace platform

• Idea – Like any other start-up project, the initial phase of creating an NFT marketplace is to plan for it thoroughly. You should think about all the facets that can come into play. Some factors involved here include business, target market, niche, competitors, solution, features, marketing, payment and technologies used. Then, based on all the plans and decisions, design the whitepaper that can help if you need funds.
• Design – After creating your NFT marketplace venture plans, it is ideal to start designing your platform. Use the necessary technical tools, including web.js, HTML and React, to create the user end screens. Ensure that the user interface (UI) provides an immersive user experience (UX). Get suggestions from a limited user base and implement them in the future.
• Develop – After the user portal is ready, it is time to develop the back-end, which supports all front-end operations. Again, use advanced blockchain coding techniques including Solidity, Python, C++ and Java. It is also the stage where you should create smart contracts for NFTs, native tokens for your platform and integrate your platform into the blockchain network.
• Test – After completing full-scale development of your platform, you should conduct intense testing. Alpha and beta testing should be performed with a small set of users and repeated automated test cases. Errors found should be resolved immediately to ensure that the final platform is error free.
• Launch – It is now time to launch your platform for public use. Make sure you have your user base ready through extensive cross-media marketing. A great way to gather your initial user base is to offer great benefits to early adopters. It is also important to have several communication channels for your business where you can get valuable feedback. Upgrade your platform periodically based on feedback to keep up with trends.

What is the difference between hiring in-house developers and an expert firm?

Fundamentally, both options give you the platform you asked for, although there are many internal differences. For example, finding in-house developers with enough experience in developing blockchain applications is challenging as the technology is still emerging.

The expenses associated with hiring them are also huge as their work experience demands higher rates, regardless of hiring full-time employees or freelancers during the project.

On the other hand, there are a few firms that excel in NFT marketplace development and have a team of experienced professionals. Such firms can create the platform according to your requirements while ensuring that no compromises are made in the fundamental aspects.

The expenses associated with hiring these outsource companies are also less than having developers work under your eyes. Recently, a few regions in Asia have become blockchain hotspots as they have many talented blockchain developers who form the backbone of some of the pioneer development companies in the area.

Summary of thoughts

Therefore, we can say that an NFT marketplace is one of the most profitable business ventures in the blockchain world. As for development opportunities, it depends on your ambitions and limitations, although working with an experienced development company sounds ideal.

As the world begins to embrace NFTs, it is only confirmed that new niches will enter the NFT world and thus more unique marketplaces will start their operations.

Image credit: Provided by the author; Thank you!