NFT Marketplace: All You Need to Know

If you want to get in on the NFT craze, an NFT marketplace is your ticket to buying and selling digital assets ranging from art to music to entire virtual worlds. Here’s everything you need to know about it.

More and more digital artworks are bought and sold in the form of NFT each day. These digital tokens can be bought or obtained for a variety of reasons, including financial gain, collector’s value, and sentimental worth. Buyers of digital products/assets through NFT may perceive it as a means to feel more connected to the business or to assist artists financially.

Crypto art is envisioned as a new form of art based on scarcity and the possibility of a work’s certification.

What is NFT Marketplace?

NFT marketplaces are “NFT malls” or platforms where they can be sold, bought, or exchanged. They’re designed specifically for non-exchangeable tokens, and they’re used to store, display, sell, and in some cases even create digital works.

It’s a platform that makes it simple to store and trade NFTs (Non-Fungible Tokens). These tokens are usually available for purchase or auction at a set price. To use such a marketplace, you’ll need a crypto wallet to make transactions and store your tokens. Users can create an account, upload digital artworks, and sell their work on the NFT marketplace

In general, niche marketplaces are more popular than standard ones because they provide everything a client might need, specialize in selling some online artworks, and cater to a specific demographic.

How do NFT Marketplaces Work?

Unlike bitcoin or ethereum, you cannot directly trade non-exchangeable tokens on regular cryptocurrency exchanges. To buy and sell NFTs, you need special trading platforms that allow you to issue, store, and trade non-exchangeable tokens. The huge marketplaces OpenSea, Rarible, Superfarm, and Mintable currently dominate this market.

They create NFTs with the help of special smart contracts that add a collection of unique information (metadata) to each token and specify its primary parameters (name, immutability, indivisibility, address/number, and so on). Non-transferable tokens can then be bought and sold at a predetermined price or through auctions on the platform.

On the client side, NFT marketplaces work like regular online stores. The user needs to register on the platform and create a personal digital wallet to store NFTs and cryptocurrencies. The user can then either use the listing to buy NFTs or create their own token. Running an NFT is usually simple and similar to creating an eBay listing. You need to provide a name, a price, give a description and an image, photo, video, gif and the like.

What is the significance of the NFT Marketplace?

The following are some of the most important characteristics of the NFT market:

Expansion with No Limits

The NFT market is a vast digital pool with millions of transactions taking place every day. To gain entry to this marketplace and purchase or sell whatever they like. It is most likely the digital market’s future.

Non-traceable

Because NFT marketplaces are virtual, they lack a physical presence. As a result, they are virtually untraceable. Any transaction in this market necessitates the use of digital money. And a crypto wallet is where a person receives and stores digital currency. When the use case for NFTs expands in the future, the crypto market will inevitably rise to new heights.

Excellent Usability

A crypto wallet is simply a storage location for coins. To perform transactions here, you’ll need multiple currencies in your wallet. Before buying, listing, or minting any NFT, one must first fund their crypto wallet. To make any transaction, one must first purchase some cryptocurrency that is supported by the NFT markets. To complete a transaction on the Ethereum-based marketplace, for example, a person needs to purchase some Ethereum kept in an Ethereum-based crypto wallet.

Easy to Work With

There are numerous digital outlets available nowadays. People must select a crypto wallet that is compatible with the blockchain network. Different crypto wallets are supported by different platforms. To purchase or sell any digital asset on the Ethereum-based platform, one must first utilize a suitable crypto wallet, such as MetaMask, and then access the NFT marketplace.

Authorization of Users

A person cannot purchase or sell on the NFT marketplace without first creating a user account. It is important to create an account, which will confirm market validity and authorization.

Key Features of The Marketplace

The NFT Marketplace combines the functions of an online store, an auction, and a blockchain platform for issuing non-interchangeable tokens. Users should be able to create their own NFT goods and sell them. In addition, such marketplaces usually offer some features to attract and retain customers, as well as improve the customer experience. When developing your own NFT marketplace, it’s best to start by implementing the following things.

Showcase

This feature provides visitors to the marketplace with all the information they need about the item: title, price, description, preview, owner, method of purchase, rating, etc. Some NFT marketplaces also provide information about the blockchain and token protocol so that users can verify the authenticity of purchased NFTs.

Search Engine

Make sure your users can easily find the item they are interested in. It would be a good idea to divide all assets into several categories, such as art, photography, video, domains, memes, and music, to make it easier for users to navigate the store listing. Filters also make it easier to navigate, especially if the platform has many of the same type of items.

Registration, Login

To be able to buy or sell NFTs on the platform, a user must create an account. Usually, the registration process is done through email, phone number or social media accounts. In addition, the user is also usually asked to provide their cryptocurrency address. If it’s not available, the option of registering with links to cryptocurrency wallets like Coinbase Wallet, Metamask, MyEtherWallet is offered.

Create a Listing

This process should be simple and not take much time. Ideally, it should be the same as on Ebay. To achieve this, you need to think about the optimal user path and implement something like OpenSea collection manager. It helps you quickly upload an item to the site and specify token properties such as name, price, description, tags, external link and more.

Wallet for NFTs

Users need a wallet for sending, receiving and storing non-exchangeable tokens and cryptocurrencies. The easiest way to do this is to provide integration with popular cryptocurrency wallets. The main thing is that such wallets support the NFT protocol you need. Typically, these are wallets such as Metamask, MyEtherWallet, Coinbase Wallet and WalletConnect.

Trading History

Usually, the NFT-marketplace should have a section where the user can see his trading history. So you can understand how popular the marketplace is, what is sold on it and at what price. For example, on OpenSea the bidding history includes the following data: event, item name, price, buyer, seller, date.

Reviews and Ratings

Shows how much visitors like the item or seller/buyer. This information helps users rate counterparties and specific lots. Usually, the rating is implemented as a numerical rating of an item or as likes. Reviews can be implemented as comments, which can be put by all registered users, and in the form of feedback, which counterparties leave about each other after the completion of the transaction.

Notifications

You can implement a push-notification system to inform users about new bids in the selected category or from the selected seller, changes in the status of the selected item, a new message, the sale of your own lot or an update to the NFT trading platform.

Support

An important element of any marketplace. With the help of support service users will seek answers to their questions, solve problems and conflicts. Support service can be implemented as a call center, email support, a separate information portal or with the help of a help bot.

Stages of Developing Your Own NFT-marketplace

An important element of any marketplace. With the help of support service users will seek answers to their questions, solve problems and conflicts. Support service can be implemented as a call center, email support, a separate information portal or with the help of a help bot.

Step 1: Opening of The Project

The first step of creating an NFT marketplace is for you to review the details of your project in order to assess the technical feasibility of the project and its viability.

Here you must answer the questions:

  • What niche will you be working in?
  • How exactly will you market the NFT?
  • Who is your primary target audience?
  • What token protocol will you use?
  • What technology stack will you use?
  • What monetization model will you use?
  • What will make your project stand out from the competition?
  • What features do you intend to implement
  • Other questions…

 

The answers to these questions will give you direction throughout the development process and help you work out the specifications for creating your NFT-marketplace. 

Once the initial concept and specifications are ready, you can draw up a development plan to give an approximate timeline and budget for the project. After that, the design can begin.

Step 2: Design and Development

When all the specifications and the development plan are agreed upon, you can get to work. First you, the business analyst and/or designers design the user interface of the marketplace (framework, layouts and prototypes) with a description of the user flows and functions of the site. An effective architecture for the marketplace is also created.

UX / UI Design

The navigation and appearance of the user interface is very important when designing an NFT marketplace, as it is the first impression, usability, and overall user experience that depends on it. So make sure your site design will appeal to your audience and be simple enough to be understood by anyone who is even slightly familiar with Amazon and Ebay.

Back-end and Smart Contracts

This level is where the entire back-end (server side) of your trading platform works. When developing it, in addition to the usual business logic and functionality of the marketplace, you have to implement the work with the blockchain, smart contracts, wallets and provide an auction mechanism (most NFTs sell through it). 

Here is an example of a technology stack for an NFT-marketplace backend:

Blockchain: Ethereum, Binance Smart Chain.
Token standard: ERC721, ERC1155, BEP-721, BEP-1155.
Smart Contracts: Ethereum Virtual Machine, BSC Virtual Machine.
Frameworks: Spring, Symfony, Flask.
Programming languages: Java, PHP, Python.
SQL databases: MySQL, PostgreSQL, MariaDB, MS SQL, Oracle.
NoSQL databases: MongoDB, Cassandra, DynamoDB.
Search engines: Apache Solr, Elasticsearch.
DevOps: GitLab CI, TeamCity, GoCD Jenkins, WS CodeBuild, Terraform.
Caching: Redis, Memcached.

Here is an example of a technology stack for a front-end NFT marketplace:

This is the entire external part of the trading platform, which is responsible for the interaction with the end user. The main task of front-end development is to provide easy management as well as reliability and performance. 

Web languages: Angular.JS, React.JS, Backbone, and Ember.
Languages for mobile: Java, Kotlin for Android, and Swift for iOS.
Architecture: MVVM for Android and MVC, MVP, MVVM and VIPER for iOS.
IDE: Android Studio and Xcode for iOS.
SDK: Android SDK and iOS SDK.

Step 3: Testing the Created Product

In this step, several cycles of code testing are performed to make sure the platform works properly. The QA team runs several checks to make sure your project code is free of critical bugs and errors. Content, usability, security, reliability, and performance testing is also done for all possible use cases.

Step 4: Deployment and Support

When the platform is tested, it’s time to deploy your NFT trading platform on a server (the cloud). Note that this is not the last step, as you will also need to organize your support team. In addition, you also need to plan the further development of the platform to follow market trends and user expectations.

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