User’s guide to creating an NFT marketplace from scratch: Necessary terms, stages, and real-life examples.

NFT Marketplace Development: An Ultimate Guide

If you seek an industry that functions as a massive revenue stream for talented people like composers and artists, then NFT marketplace development can be the perfect match. You can even tap into augmented reality and virtual reality to get a new unique technical solution. The NFT cap serves as great proof of an industry expansion; in 2022, it achieved the mark of $828 million.

Today many businesses invest in NFT marketplace development to showcase their collectibles and facilitate effective digital asset management.

In this piece, OpenGeeksLab reveals all ideas you need to know on how to create an NFT marketplace. If you are only at the beginning of your journey, no matter whether you plan to use an NFT platform for creating, buying, selling, and auctioning non-fungible tokens or as your core business, read our A-Z guide till the end.

What Does a Non-Fungible Token (NFT) Mean?

Defining a non-fungible token (NFT). When it is used and why would you want to develop and implement a related idea.

When studying the NFT platform ecosystem, the primary thing to consider is its definition. Original identification codes and metadata make each of the NFTs different from the other. Since they’re digital assets, they can’t be exchanged or traded at an equivalent unit. NFTs can come in various artworks like photos, music, videos, and others.

The main property of non-fungible tokens is their uniqueness. Apart from that, the following distinctive features that differentiate NFTs from other forms of digital content:

  • Indivisibility. It’s not possible to divide NFT tokens into tiny denominations.
  • Authenticity. Every non-fungible token has an owner; the ownership can be verified easily.
  • Non-interoperability. NFTs aren’t equal which makes it uneasy to exchange them as popular cryptocurrencies like BTC and ETH.
  • Tradability. NFT holders can trade their digital assets on different crypto platforms and thus, derive multiple benefits from these trading platforms.
  • Interaction with numerous blockchain ecosystems. The generation of NFTs for digital collectibles is possible with a couple of standards, ERC 1155 and 721.
  • Liquidity. Since the non-fungible tokens can be traded instantly, their liquidity remains very high. Apart from that, such digital assets can attract the attention of multiple buyers from rookies to the most experienced traders.
  • Programmability. This NFT property implies their ability to possess embedded functionality that allows them to perform certain functions or actions when triggered.
  • Scarcity. It makes it impossible for the developers to enforce extra characteristics after the marketplace launch since they cannot be altered.

Besides, every non-fungible token is an original digital asset with a unique metadata set. Many artists and collectors can digitize their work and join e-commerce by tokenizing their goods. NFT marketplaces can work both ways as regular stores or auction platforms.

Get a better understanding by grabbing some samples. NFTs best-known examples include:

  • Original digital piece of art
  • Digital collectible
  • In-game item
  • Domain
  • Music track
  • Video
  • NFT art app
  • Essay/Creative writing
  • Unique pair of shoes
  • Pattern
  • Ticket/Coupon

These are great examples of NFTs. If you possess any of them or look for specific goods, you know where to search. Now, let us guide you through NFT marketplace development.

General Info About NFT Marketplace Development Services

General summary of NFT marketplace domain and the most popular online non-fungible tokens platforms.

While some non-fungible marketplaces allow minting NFTs without paying fees, others accept exclusive cryptocurrencies and operate on other blockchains. They’re all different, with their advantages and disadvantages. NFT website development covers building two types of marketplaces: universal NFT websites and niche peer-to-peer platforms offering particular digital assets.

A bunch of different new NFT marketplaces will show up. They’re all fantastic opportunities for collectors to get more collectibles. These platforms may serve as a source of inspiration for everyone who will build an NFT marketplace.

1. OpenSea

It is the first name in the crypto NFT market among top non-fungible token companies. Users can find various NFTs like trading cards, pieces of art, sports, and more.

Plenty of rare, original assets are on this NFT platform: from Decentraland to ENS names. Collectibles and trading card games are among the leaders. You can get CryptoKitties and Decentraland at this crypto NFT market. As of early 2022, more than  600,000 users have registered on the site.

It’s possible to build personal goods with the help of the inserted minting instrument. Users can do that at no charge. If you are working on a blockchain smart contract for an app or collectible with original items on a blockchain, your chances of joining OpenSea are high.

2. Atomic Hub

Atomic Hub is a great NFT marketplace for digital art. As of today, 224.0M

NFTs have been created there. It occupies leading positions via Wax blockchain. Users are eligible to trade items for native Wax coins. Consumers who have registered can trade stuff worth 25 cents. It is really easy to create an NFT collection on this site. Users can craft their own items from scratch or use a common theme for their collectibles.

3. SuperRare

You can build an NFT marketplace based on one more example. This service is one of the latest innovations in digital crypto art. This service isn’t available for everyone. Only proven authors with notable works of art are permitted to publish and sell their masterpieces on SuperRare. Passing sign-up and verification procedures might be challenging. What’s more, you’ll need Ethereum to take part in exchanges.

 

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4. Rarible

It is one of the top NFT companies. This service is owned by the entire blockchain community. It’s as easy as ABC to exchange NFTs with other creative people. Top sellers and customers do not stay without perks at Rarible. Active participants obtain rewards for their effort – a local coin known as $RARI. It allows for a quick NFT transaction. This NFT art platform is for talented artists willing to share their tracks, albums, videos, domains, images, cards, and metaverses components. The collections here impress!

These examples are great for NFT marketplace development. If you analyze them, you can see how successful projects in this category function.

Best Proof of NFT Marketplace Efficiency and Promising Future

Essential factors that make NFT marketplace development a promising stream of revenue and a great idea.

We will prove that NFT marketplace development is a promising business. In 2021, the market for NFTs grew to $41 billion, coming close to surpassing the whole amount of the worldwide fine art market.

Making money this way is not that hard. Another great example of a successful non-fungible token is Jack Dorsey’s initial tweet, which he sold for roughly three million US dollars.

In 2021, these NFT tokens in gaming and art were worth millions of dollars.

Speaking about the most profitable examples, the NBA’s Top Shots, a blockchain-based trading card system or TCS for short, generated $230 million in gross sales.

One more cool example is Kings of Leon. Band members successfully sold their tracks for two million dollars in 2021.

Another pick is CryptoPunk #6965 sold for 1.54 million dollars in 2021.

OpenSea’s monthly sales reached over 95 million dollars in February 2021 alone.

Curiously, NFTs could have been out there since 2012.

While demand and prices for some goods are dropping, for others, they increase. It happened with NFTs for gaming and arts, respectively.

Huge name brands like Taco Bell have developed NFTs by suggesting digital items.

These stats showcase that the NFT marketplace development growth makes sense. While market capitalization (commonly called a market cap) is booming, more and more world-famous brands are joining this trend.

 

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Factors That Define Non-Fungible Token Marketplace

Six qualities that best characterize, describe, and explain non-fungible tokens marketplace.

From the video gaming industry to digital collectibles and assets, you may base this type of business on many items. NFT developers can make up an unlimited number of non-fungible tokens. The main properties of NFTs that make them appealing to crypto enthusiasts are:

  • Rareness
  • Unique tokens
  • More ownership rights
  • Unified tokens
  • Compatibility
  • Transparency

And combined with indivisibility, trustworthiness, easy and secure asset transfer, NFT marketplace development is attractive enough to jump right into it.

Find Out How Blockchain NFT Marketplace Works

Understanding how blockchain NFT marketplace functions. A step-by-step guide on how to create an NFT marketplace.

A transaction protocol known as an NFT smart contract  is the heart of NFTs. Now, let’s have a closer look at this term.

Definition of a Smart Contract

In plain English, a smart contract is a self-executing program stored on blockchain that automates agreement between participants. Smart contracts are noted for their enhanced security because encrypted transaction records are hard to hack.

How Does a Smart Contract on a Blockchain Work?

NFTs run on smart contracts. Each one contains specific, original information encrypted and kept in a contract on a blockchain which makes it secure and immutable. These contracts run together via blockchain technology and self-generate to their potential.

For example, a buyer sends cryptocurrency for stuff they choose, and a seller should grant it the right to own it. If all parties meet the requirements, the smart contract independently handles the purchase and sale.

User Flow on NFT Marketplace

For NFT sites, the user flow appears to be the same. Website visitors should register an account and fill in the required personal details. Their next step is to build a crypto wallet to save their currencies in one place. Alternatively, they can link an existing crypto wallet.

The next stage is to create NFTs. Those who have completed the registration process should provide digital assets representing their work. They may create full collections and sell artworks at a specified price or set up a bidding system where a buyer with the best and final offer wins and gets the desired piece.

No products will appear on the platform until they have been examined and approved. Moderation is essential. Customers will see NFTs available for sales/bidding once the system allows them. The auction begins. That’s when owners of non-fungible tokens start accepting bids. As soon as the auction ends, all participants get notifications about top bids. Finally, the platform manages all transactions and item movements.

That is what a user flow typically looks like. You can use this process to navigate yourself through a full-cycle NFT marketplace development.

Launching Non-Fungible Tokens Marketplace as Personal Business

Would you like to turn your NFT marketplace into a successful and profitable business? To reach this goal, you should attract your target audience. What’s more, you should uncover potential challenges that you will have to overcome. Those challenges depend on the issues prospective customers may face.

After that, decide on the integral parts of your future NFT platform so as not to miss a thing, and pick the most suitable go-to-market NFT marketplace development strategy. If you are about to create a unique NFT marketplace from zero to hero, consider these stages:

1. Target Niche

Experts suggest betting on a vertical rather than a horizontal market. The first one stands for delivering goods or services that meet the needs and expectations of a certain consumer group. Amazon and eBay are not the best examples so far as they offer everything to everyone, being horizontal suppliers.

2. Propose User Roles

There are not many options but think carefully. Should they be buyers, artists, or admins?

3. Define Your Project and Design

The platform creation step starts with project documentation. It’s a routine, but you may risk wasting time in the future without documents at hand. By the way, an in-house team does not need those docs as much as offshore specialists.

4. Move to Creation

Once you’re ready with the NFT marketplace design concept, it’s high time to convert your idea into reality. Check out the available options and find a framework that will suit your business and technical goals. Some may think about hiring professional NFT developers or an NFT marketplace development company to guarantee excellent performance and credibility. They help save time and cut expenses.

5. Apply Smart Contracts Token Generator

If you decide to build an NFT marketplace, you should know that back-end development is different in this case. Most of the info is confirmed on a blockchain. If you want to make a decentralized app, pass internal logic to the decentralized part.

 

6. Examine and Deploy

The last but not least essential stage is testing and deployment. It’s about detecting any pitfalls and fixing them. Software check ensures that your digital product is running as it was planned. Post-launch support is also critical to eliminate bugs and confirm the system’s quality execution. Do not hurry to release the product until you check all functionality. Does the final NFT marketplace correspond to your expectations? Imagine how users would treat it. This stage is required to ensure credibility and excellent performance.

Before you start working on your NFT platform, remember all the must-have elements your service should have. Also, you will find out how to calculate the development price further in this article.

Must-Have Features of NFT Marketplace

Core features of NFT marketplace: things that make this type of online platform extraordinary and attractive for both buyers and sellers.

Before we delve deeper into the primary platform functionality, let’s discuss what attracts people to non-fungible tokens and NFT marketplaces. Blockchain technologies let creators enshrine all rights and make digital assets way easier to work with. You can also freely trade NFTs. More importantly, blockchain tech provides customers with confidence that they’ll receive what they want. Other crucial features to consider when investing in NFT marketplace development services are as follows:

1. Storefront

Captivating and visually appealing storefront is a key marketplace feature that helps hold visitor’s attention. The key information specified there includes name, value, bids. history, and more.

2. Advanced Token Search

You should enable consumers to find the core information about the required NFT items fast and with minimum effort. It would be a good idea to sort items by different categories, for example, images, videos, art, music, and so on. By offering users quick and hassle-free search, you significantly increase customer satisfaction.

3. Filters

A straightforward filtering system makes it easier for users to navigate your platform and find the items they need. Besides, it reduces the time interval between selecting an NFT item and purchasing it. The most popular filters that come to our mind include Hot Deals, Recently Listed, Most Viewers, and more.

4. Creating Listings

Allow users to create collectibles quickly and effortlessly. Design a creation page where users should be able to upload a file and specify crucial token data, namely title, description, and tags.

5. Listing Status

This feature is helpful for sellers whose collectibles are going through the verification process. It shows them the current status of their NFT items.

6. Bidding Option

Every e-commerce project must give customers a right to buy stuff and bid on it. It draws in more consumers since some buyers prefer flexible pricing and refrain from purchasing digital assets at their starting price. Bidding always brings users a positive experience. Here it is important to set a bid closing date. Apart from that, enable interested buyers to check the current status of the bid. This information will help bidders understand whether they should buy a collectible now or if it makes sense to continue bidding.

7. Wallet

Crypto Wallets offer consumers a safe and secure cyberspace for storing, sending, and receiving crypto currencies and non-fungible tokens. There are many different crypto wallets with various degrees of protection against common threats that can have a negative impact on funds. For this reason, we would recommend hiring an NFT market service company to set up a reliable wallet to enable users to safely store and submit their tokens.

To make the platform convenient and user-friendly, allow users to connect their registered crypto wallets. If they do not have one, enable them to set up a wallet by integrating your platform with the most popular providers, such as MetaMask, Coinbase Wallet, WalletConnect, or Ledger.

8. Ratings

This feature will help newcomers to understand where to start or what NFT item to choose. Besides, a ranking system is a very helpful tool for rating sellers and proving their reliability. Therefore, you should allow users to rate sellers and leave feedback based on their previous experiences. This way, all platform users will know how credible this seller is. You can even reward the best sellers.

Now that we defined the primary functionality for the NFT marketplace platforms, it is time to discuss the development approach. Here you have two available options. You can use ready-made tools, which will allow you to launch your platform fast. Alternatively, you can hire a software development company to build an NFT marketplace solution from scratch.

Prepared NFT Marketplace Tools VS Custom NFT Marketplace Development

Deciding between ready solutions versus custom marketplace development: Which option is the right one for you?

If developing an NFT platform is your goal, then pick one of the available methods. Individuals might pick certain instruments for more efficient and hassle-free operations. This method is less expensive, and a shorter time to market is its obvious benefit. Some prepared tools cover software as a service (SaaS), application programming interfaces (API), content management systems (CMS), and platform as a service (PaaS).

When it comes to NFT marketplace development, notably, the most common ready tools include OpenSea SDK. With its help, you will create a marketplace customized according to your unique design. Companies may choose third parties offering such NFT marketplace development services.

A partnership with an experienced NFT marketplace development company is the best choice for building a digital platform that will meet all your requirements and needs and exceed your expectations.

Their technical experts will handle each element of your project thoughtfully. They will build scalable architecture and create a visually appealing and user-friendly design. After the platform launch, the software development company will deliver support and maintenance services, which make it easy to add extra functionality or upgrade existing features any time you need.

If using ready-made tools is not an option for you since you want to get an NFT marketplace with unique functionality, consider investing in custom marketplace development. Surely, it will be more challenging, but it will provide clear benefits.

Pros of Custom NFT Marketplace Development

  • Security. By choosing custom software development, you will get an online platform that will be protected against the most common threats and vulnerabilities.
  • Compatibility. Custom marketplace development ensures that your software solutions will be compatible with a wide range of devices with different screen sizes and resolution.
  • Scalability. It means that the platform will easily handle a growing number of concurrent users.
  • Functionality. You can build a unique architecture and functionality tailored to your specific business requirements and needs.

Cons of Custom NFT Marketplace Development

  • Management. To create a bespoke marketplace, you will require an NFT development team that will be engaged in your project for a long time. Given that, it may be hard to manage these technical experts in the long run.
  • Price. Building a custom non-fungible token marketplace is more expensive than out-of-the-box solutions with limited functionality. You will have to seek investors to receive the required funding and get your solution developed from scratch.
  • Time. Assembling an NFT development team may take a lot of time. However, by choosing this option, you will get a fully customized and personalized software solution.

On top of that, people who choose tailor-made NFT marketplace development agree that security is their top priority, and such an approach can guarantee that. You do not deal with any third parties. The NFT data only belongs to your servers or blockchain networks. This issue is crucial for NFTs marketplaces since not complying with security and safety protocols might result in catastrophic consequences.

 

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Want to Build an NFT Marketplace? What Would Your Price Be?

How much does it cost to build an NFT marketplace? Approximate estimations and practical recommendations.

How much would it cost to create an NFT marketplace? For those who have limited budgets, this question is of great importance. The amount of work necessary to complete such a project determines your final price. Another factor that impacts the price is the platform you choose for your NFT project. It can be an OpenSea SDK or a custom NFT marketplace solution on Ethereum.

Ready-made tools might be more expensive but effective and time-saving. In the case of fully custom development, an individual estimate is what an NFT user needs.

Picking and applying pre-made templates is a great way to save time and money. Since it’s ready to set up, you don’t need to beat your head against a brick wall.

Specialized NFT development services will be more expensive than other solutions. Their professionals should create a user flow, features, and give out a finished product done on a blank page.

Complexity is another factor. How many features do you plan to add to your NFT marketplace? Should it have a complex interface and navigation? Difficulty makes its cost higher. This way, expect to spend time on and pay for:

  • UX/UI Development
  • Security
  • User Profiles
  • Main Page
  • Product Page
  • Rating Page
  • Notifications
  • Crypto Integration
  • Buyer/Seller Panel
  • Admin Panel
  • Management (different types)

It’s possible that it may take more than 1000 hours to complete your project. A platform with the feature set we presented above may cost you over $47,000. Development teams from the United States and Western Europe charge the highest price for developing an NFT marketplace, whereas experts from Eastern Europe set up lower rates while meeting all quality regulations and standards. Last but not least, individual requirements and expectations define the cost of a project. Think carefully about what you plan to achieve with it and how fast.

Succeed with Your Custom NFT Marketplace

NFT marketplace popularity seems to go up in our age. Passionate collectors will be ready to do anything to gather the whole set, whether trading cards, postcards, or even digital art pieces. So, taking this into account, it’s a great idea to build an NFT marketplace or launch an NFT app since it aims at the pain points of its target audience.

Marketplaces based on NFTs have many outstanding features. You should know both how your platform should function and what various audiences of collectors are looking for. How much money are they willing to give in order to get exactly what they want? It’s critical to understand the value of each and every product presented on your NFT platform.

In case you wish to invest in blockchain marketplace development, you have some perfect options. Hiring seasoned NFT developers instead of building a platform by yourself seems a very sound solution.

If you plan a project from scratch, then OpenGeeksLab will be a good help. Drop us a line about your project to discover how we can transform your business with the latest technologies or schedule a free consultation with our experts. We will be happy to assist you further.

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