With the rise of blockchain technology, several things come into the hype like cryptocurrency, smart contracts, decentralised finance (DeFi), and most notably Non-Fungible Tokens (NFTs).
As a digital representation of tangible and intangible objects on the blockchain, NFTs have dramatically increased the interest of various artists, musicians, influencers, and even businesses. This has opened the doors for creating a potential business, the NFT Marketplaces.
But here, the question arises-
- How do I have my own marketplace?
- How to build an NFT marketplace?
Well, the answer to both questions is one- hire NFT developers.
You may be thinking- how? It’s simple, NFT developers are highly skilled professionals who know the ins and outs of blockchain technology and can leverage it to create a unique and functional NFT marketplace.
Besides, being an entrepreneur, you would also need to have an understanding of NFTs and how they work. Therefore, Here’s a guide to NFT marketplace development:
What are NFTs and NFT Martetplace?
NFTs, an acronym for Non-Fungible Tokens, are distinctive digital assets that reside on a blockchain. In contrast to cryptocurrencies like Bitcoin or Ethereum which are interchangeable, NFTs maintain their individuality and value. Think of them as unique digital collector’s items that cannot be replaced.
Each NFT possesses a digital signature that differentiates it from the others. They offer a digital form of ownership, essentially a digital certificate of authenticity. These tokens can be anything from digital art pieces, and music files, to virtual properties, and more.
An NFT Marketplace, on the other hand, is a platform where these digital assets can be bought, sold, or traded. Some well-known NFT marketplaces include OpenSea, Rarible, Foundation, NBA Top Shot, and many others. Transactions in these marketplaces are typically carried out using cryptocurrencies, particularly Ethereum, as most NFTs are built on their blockchain network.
In an NFT marketplace, creators can mint their digital work into NFTs and list them for sale, often at an auction. The NFT then can be bought by collectors or traders who may choose to resell it in the future.
The Potential of NFT Marketplaces
The NFT market is set to make about US$2.38 billion in revenue by 2024. It’s predicted to grow at a rate of 9.10% annually, reaching a total of US$3.37 billion by 2028.
On average, each user in the NFT market is expected to generate US$162.10 in revenue in 2024. The United States leads in revenue, reaching US$1.12 billion in 2024.
The NFT market is projected to have around 16.35 million users by 2028, with a user penetration of 0.19% in 2024, expected to rise to 0.20% by 2028.
Yet, the current figures only represent the tip of the iceberg. As digital ownership continues to gain traction and as more diverse digital assets become tokenized, the trajectory of growth for NFT Marketplaces is set on an upward curve.
The excitement surrounding NFT Marketplaces is palpable and the potential for expansion is seemingly limitless.
Must-Have Features in an NFT Marketplace
- Storefront: This is the first point of contact between the marketplace and the user. It should be user-friendly and visually appealing, making it easy for users to browse through different NFT categories.
- Advanced Token Search: This tool allows users to easily find specific NFTs. Filters like price range, category, and popularity can enhance the search experience.
- NFT Rankings: A feature that displays popular NFTs based on user engagement can be very useful. This can provide valuable insights to both buyers and sellers.
- NFT Listings: Comprehensive listings provide information about each NFT, such as its price, owner, history, etc. This transparency boosts user confidence.
- Listing Status: Users should be able to see if an NFT is for sale, has been sold, or is up for auction. This helps buyers make informed decisions.
- Crypto Wallet Integration: To facilitate transactions, a marketplace must support integration with popular cryptocurrency wallets. This ensures seamless buying and selling of NFTs.
- Selling and Auctioning: Sellers should have the flexibility to list their NFTs for a fixed price or put them up for auction. This flexibility can attract a broader range of users to the marketplace.
How to Build an NFT Marketplace?
Steps to Developing an NFT Marketplace:
- Defining the Vision: The very first step in developing an NFT marketplace is defining what you want. Are you looking to create a general marketplace or focus on a specific sector like art, gaming, real estate, or others?
- Choose the right Blockchain: Ethereum is the most common blockchain for NFT development. However, other options like Binance Smart Chain, Polkadot, or Tezos might be better for certain marketplaces. You should evaluate the benefits and drawbacks of each blockchain platform to select the one best suited for your project.
- Smart Contracts: These are self-executing contracts where the agreement between buyer and seller is directly written into code, which ensures security and transparency. They control the creation and trading of NFTs.
- UI/UX Design: User-friendly interface is a must to attract and retain users. This includes ease of navigation, design aesthetics, intuitive layout, mobile compatibility, and quick load times.
- Development & Integration: The NFT marketplace involves complex coding and it is here you need the most help from your NFT developers. The coding includes the creation of smart contracts, integration of blockchain, wallets, and necessary features for your marketplace.
- Testing: A crucial phase before launch, you should thoroughly test your NFT marketplace for functionality, security, and efficiency.
- Launch & Marketing: Once testing is complete and changes are made, your NFT marketplace is ready for launch. It’s also important to plan a strong marketing campaign to attract your potential users.
NFT Marketplace Development Cost
The cost of developing an NFT marketplace typically falls between $45,000 and $50,000. However, this cost can vary depending on the tools and technologies used, the complexity of the project, the specific niche of the NFT marketplace, its functionality, security features, and other factors.
Developing an NFT marketplace is not an easy task. It requires careful planning, a thorough understanding of blockchain technology, and specialised skills. Hiring an NFT development company can make this process smooth and efficient, helping you turn your vision into a successful NFT marketplace.