Use cases, prerequisites and features
Digital collectibles are making news all over the world and people are incredibly excited to own rare digital assets. As a result, non-fungible tokens soon joined the course of investment plans of individuals.
NFTs worth billions are traded on digital platforms
These digital platforms are called NFT marketplaces. The NFT marketplaces function like all other marketplaces that facilitate the sale and purchase of NFTs. Moreover, these NFT platforms bridge the gap between buyers and sellers by helping them execute their transactions smoothly.
NFTs built with blockchain technology will protect the uniqueness and authority of digital assets. The blockchain network prevents digital assets from being stolen, replicated and manipulated. This is why digital creators are taking up the route of NFTs to generate revenue. In this blog we will briefly discuss the evolution of the NFT marketplace.
Are NFTs emerging as trendsetters?
Blockchain technology has created a huge revolution where industries have adapted them to curate their operations. The data and transactions recorded in the blockchain are highly secure and no hacker will ever dare to hack them. Here, the data is registered as blocks in various digital ledgers.
So it becomes difficult for third parties to hack the data and transactions. Furthermore, when the same technology is used to develop the digital assets, they prevent the NFTs from being replicated or hacked.
When the concept of NFTs was created in 2010, a total of barely a hundred NFTs were sold. The scenario has completely changed where thousands of NFTs are being sold in every nook and corner of the world. CryptoKitties and CryptoPunks stand out as a trademark NFT collection that has sold for millions of dollars.
According to a statistical report, Axie Infinity, the leading NFT gaming platform, witnessed a transaction worth $3.5 billion in 2021. On the other hand, CoinBase, a leading crypto platform, has announced that by the end of this year, it will launch its NFT -platform. This information came out after the increase of their user base in October 2021.
Different use cases of NFTs
NFTs have created a huge hype in the market where people in different parts of the world are expressing their interest in trading NFTs. This interest is the main key to motivate entrepreneurs to explore innovative ideas to venture into the NFT market.
To know exactly about the use of NFTs, here are many business uses that you should know before starting the development of the NFT marketplace and Gaming. NFT gaming is a very lucrative business model where NFTs are converted into the concept of gaming.
After the great success of NFT gaming platforms like Axie Infinity, entrepreneurs are showing more interest in starting their ventures in the NFT gaming space. By participating in NFT games, players could win exciting rewards in the form of NFTs.
The game characters and collectibles are developed in the form of NFTs, which can later be traded on other NFT platforms.
NFT DeFi
DeFi, which stands for decentralized finance, is something that works based on blockchain technology. NFTs have almost ventured into every conceivable form. The concept of DeFi NFT is to encourage individuals to pledge their NFTs and get cash back for it.
What if someone is short of money but has NFTs worth millions. This encourages them to pledge their NFTs and cash out of it.
Fashion clothes and wearables
In 2021, the popular fashion brand RTFKT sold a digital jacket for a whopping $125,000. Fashion NFTs are the next big thing happening in the NFT market, where popular brands are focusing on launching their fashion NFTs and digital collectibles.
By launching their products in the form of NFTs, they can prevent their products from being manipulated and replicated. Along with the NFT digital tokens, users will also get their products and items in hand.
Ticket sales
NFT tickets are buzzing as the next big thing in the NFT space. You may be wondering what is so special about NFT tickets? Tickets for major sports matches and events are tokenized into NFTs so that NFT fans don’t miss out on paper tickets.
Paper tickets are often lost and misplaced because event organizers get stuck in between. NFT Tickets will also provide NFT fans with some real-time tools.
Prerequisites to Consider for NFT Marketplace Development
NFT platforms are the perfect way to generate income for entrepreneurs. From coining to trading, every service related to NFTs will bring revenue to the platform owners. Therefore, when people are interested in buying and selling NFTs, it is important to create a picture-perfect NFT marketplace.
Here are the following areas you should consider before developing an NFT platform.
Develop a crypto wallet
Before developing an NFT platform, you should set up an Ethereum wallet compatible with all the blockchain technologies. The most important thing is that ERC-721 must be supported on the platform.
However, you can choose from a variety of wallets such as MetaMask, Coinbase and Trust wallet that will be compatible with the development of the NFT marketplace. So choose these trusted wallets for your platform.
Secured user accounts
Make it possible for users to log in securely with their user credentials. Make sure they go through simple and easy procedures to sign in with your NFT marketplace. Creating an account on your platform will further allow them to trade on your platform.
Network charge
When users trade their NFTs on your platform, they will be charged a transaction fee. The transaction fee or gas fee varies by the type of NFTs and will vary from one platform to another. Then decide the transaction fee you want to fix for your NFT platform.
UX/UI design of the NFT platform development
The design and outlook of the platform is the main feature that will invite large users to your platform. A friendly user interface is the key to success. So approach your developers with a clear plan for designing the UX and user interface.
Decentralization
An NFT marketplace must operate in a decentralized manner. These platforms require no third-party or human intervention. The entire activities of the platform should be automated.
Blockchain network
Since we all know that blockchain technology is the heart of the NFTs, it is important to choose a reliable blockchain network for your NFT platform. This will help you design a perfect NFT platform for the users.
How to shape your NFT marketplace?
Once you have a clear model for your platform, you should start focusing on the working model. If the platform does not follow a certain feature pattern, users will ignore your platform. Here is how you need to design the working pattern of the NFT platform.
- Users should go through a simple registration process where they can register with their email addresses, passwords and contact details.
- The existing crypto wallets of the users are linked to their NFT platform accounts to store and trade the NFTs.
- Digital artists can personalize their NFTs by adding the descriptions and setting a price for the NFT collections.
- The platform will validate the digital collectibles and list them in the platform for the sale of the NFT collections.
- The sellers should have two options for bidding and selling. First, they can set the price for the NFTs and list them for sale and bidding.
- While developing the NFT platform, you should choose between offering both English and Dutch auction methods for individuals.
- At the end of the bidding process, users and sellers will be notified of the winners of the bidding process.
- The platform should be developed so that users are allowed to pay with all possible payment methods.
Exciting features to include in an NFT platform development
The NFT marketplace should provide basic functions that are very important for a platform to function. To launch an NFT platform you should include the following features on your NFT platform;
- A beautiful storefront allows users to know and understand more about the NFTs. They can see the history and owners of the NFT collections.
- Digital creators can list their NFT collections for sale or auction on the platform.
- Users can search their interested NFT collections on the platform and filter them according to their criteria.
- The intuitive UX/UI on the platform should attract users when they approach your platform.
- Multiple payment options should be available so that users can pay with one of their possible payment methods.
Packaging
How interested are you in setting up a strong NFT marketplace development? There are many options next to you! But first, you can adopt a white label NFT marketplace and start shaping your NFT platform!
