How to Develop Cardano NFT Marketplace?
Cardano is third generation blockchain that provides a scalable, fast, and cost-effective environment for smart contracts, DApps, and NFTs. The network is the most popular blockchain platform on GitHub. Moreover, the platform issues ⅓ of global NFTs and takes third place in general NFTs trading volume. This article will explain why this blockchain is so popular among blockchain developers and NFT fans and how to develop your own NFT marketplace on the Cardano infrastructure.
Cardano has functioned since 2015 and was launched by Ethereum co-founder Charles Hoskinson. The platform provides high scaling capabilities, resilience, functional compatibility, fast transactions, low fees, and quick verifications. Ouroboros (Proof-of-Stake variation) consensus mechanism is network fundamental. Furthermore, Cardano has its native token — ADA, along with standard functions like paying fees and rewarding stakers; it also is the network key management element; all ADA holders can introduce offers for developing and improving the Cardano network and vote for them.
Ouroboros consensus mechanism. One of the prime benefits of Cardano for launching NFT solutions is the consensus mechanism. Ouroboros is a variation of regular Proof-of-Stake created by the Cardano team and renowned scientists. They aimed to develop a fast, scalable, reliable, and utmost secure blockchain. Ouroboros is the first consensus mechanism with academically proven security and reliability.
In Ouroboros, a group of network participants (slot leaders) from a special candidate pool verifies the transactions. Any ADA token holder can become a candidate if they block stake their tokens in the wallet. Leader selection is random, so the system remains decentralized, unlike standard PoS, where the biggest token holders receive the advantage. If the leaders fulfill their duty, they receive a reward in ADA; if not, the system takes their ADA tokens.
For instance, you can implement a decentralized application, where:
On the technical end, an NFT marketplace on the blockchain is an online store that allows users to create, buy, and sell NFTs hastily; the process is similar to purchasing products on Amazon or eBay. The only significant difference is that all transactions for minting and trading NFTs are registered in the blockchain. Here is a step-by-step instruction on how to develop an NFT marketplace on Cardano.
Likewise, in launching any other project, the first step to establishing a blockchain platform for trading non-fungible tokens is determining the target niche. According to these criteria, there are two categories of NFT platforms.
General NFT market. These are NFT trading platforms where users can create and sell different asset classes. For example, users can go to OpenSea and sell assets in the following niches: digital art, collectible cards, sports, video games, domains, metaverses, texts, etc. Due to a broad set of NFT products, these marketplaces have bigger audiences yet can’t offer personalized designs or employ highly-efficient marketing strategies focusing on a narrow target niche.
Specialized NFT platform. These are NFT marketplaces that provide a single asset type. For instance, NBA Top Shot sells only sports NFT, while Gala Games only its video game-related items. However, the niches can be even narrower; for example, Valuables sells famous people's tweets. Developing specialized NFT platforms is not much different from general platforms without considering design. Specialized projects allow the implementation of personalized designs for a user interface that will be more efficient for a particular target audience.
The second step requires finding a technical partner to help implement your project. You must find a developer team with extensive experience working with Cardano blockchain and NFT marketplaces, like Merehead. Since 2015 our team has offered advanced technical support for software development in blockchain, DeFi, Game-Fi, and NFT, from smart contracts to hyper-secure cryptocurrency exchanges and NFT marketplaces. Proceed to our website to study our portfolio.
After you determine with the developer, you must thoroughly work on the project concept; namely, define business targets, functionality, technical requirements, and other significant moments.
Also, there are several monetization models you can choose from:
Showcase. The NFTs showcase is the first thing your users see. Your success will depend on whether the showcase is appealing and intuitive. Therefore, thoroughly study the structure, content, color scheme, and design. Furthermore, make sure that the navigation and layout of your platform remind users of popular solutions on the market.
Listing items. Minting tokens and listing them are two different processes. To list an NFT on the platform, the user must name it, write a description, select a sales method and a payment system, and state the price and duration. Then the moderators will verify the lot and list it on the platform.
Ratings and reviews. Now, users are used to comparing other people’s reactions; therefore, this feature is necessary. You must allow the users to leave feedback and marks. Furthermore, you must implement ratings for NFTs according to users’ reactions.
Notifications. Your platform will send various messages to users. Typically, you will notify the users of ending the lot moderation, selling and item new messages in the chat, platform updates, etc. However, do not limit to a standard set of messages. You can also make your platform notify the users of new NFTs from their favorite authors, price growth or dump of a preferred lot, and others.
NFT Royalty. This function allows the authors to receive interest from the resale of their NFTs. You will have to create special smart contracts according to the rules.
Support. The last function concerns the technical and informational support of users. These are articles, instructions, and chats via mobile or online.
The user interface of your has a critical impact on the user experience. The UI must be clean, attractive, and intuitive. Furthermore, the user interface design must be scalable and offer additional functions.
Here is the technology stack for the frontend of the NFT marketplace:
The technology stack for the backend of an NFT marketplace: