How to Develop Your Own NFT Marketplace?
How to Develop Your Own NFT Marketplace?
According to NonFungible.com, in the first quarter of 2021, the general capitalization of major NFT projects increased over 2100% (in the past year the total market growth was only 300%). Many NFT tokes are sold instantly, and the most popular ones were sold approximately for 70 million dollars. Moreover, various celebrities support the market by transferring their music, pictures, memes, videos, logos, codes, etc. into NFT.
The most benefit the websites, which work as platforms for NFT trading to simplify the purchasing and selling of the NFT. In this article, we will shortly discuss what is NFT and where it can be applied, how to develop your own NFT marketplace, and how much it costs.
Non-fungible token, or NFT — is a digital token that is designed to work as a digital certificate of proprietary rights for physical or virtual assets, such as photos, videos, tweets, codes, etc. Each NFT is a unique, non-fungible, indivisible digital asset. This means that NFT is different from Bitcoin and Ethereum, so they can not be traded or used as a payment method.
For example, the Cryptopunk 4250 NFT— is a proprietary rights certificate for a unique character that exists in the digital world, and according to the description, is a pixel image of a punk woman wearing welding glasses, with disheveled hair and purple lipstick. This lot is selling on the Larva Labs for 116 913 dollars.
Here are some other examples of NFT lots:
They use special smart contracts to generate NFTs and add the token to a unique data form called metadata. Then main parameters are added (name, non-fungible feature, indivisible feature, address, number, etc.). Next, the non-fungible tokens can be bought and sold on the platform for a fixed price or at an auction.
How do work the NFT marketplace smart contracts?
Many NFTs are used to make money out of various digital art pieces; starting at digital copies of real pictures and ending up with memes. For example, on the OpenSea platform you can buy, sell, send images, videos, GIFs, and music. This platform is powered by Ethereum and creates NFTs by using the ERC721 and ERC1155 protocols.
However, art is not the only niche where NFTs can be applied. You can use it to trade collectibles (NBA Top Shot), game characters (CryptoKitties) property (Mintable), virtual worlds (Metaverses), investment offers, and any other sector, where the proprietary right can be turned into a token. The most important thing is to create a marketplace that will work with your proprietary rights needs.
For example, you want to develop an NFT marketplace to trade art, and in general, all you need to do is to develop an online shop. The server part should have the ability to process, store, sell, and trade NFTs. It is relatively simple. If you want to have an NFT platform for property trading, you will need to develop something like Zillow or Trulia. These platforms work with MLS databases, find the location of the user, etc.
And this works with other niches too. Here are some other examples:
Shop window. This function offers users to check all the necessary information on the lot: name, price, description, owner, payment method, rating, etc. Some NFT marketplaces give additional information on the blockchain and the token protocol so that the users see if the NFT is valid.
Rarible marketplace shop window
Sign Up\Log in. To sell and buy NFTs on the platform, the user should create an account. The sign-up process is usually done through emails, phone numbers, or social media accounts. Usually, the users are offered to state their cryptocurrency account. If they do not have one, they sign up via Metamask, MyEtherWallet, Coinbase Wallet, or other cryptocurrency wallets.
Creating an ad. This process should be simple and fast. Perfectly, it should be similar to eBay. To achieve the best results, try to create something like an OpenSea collection manager. It will help to upload the product, state the name, price, description, tags, external link, and other features.
The lot creating process on OpenSea
Trading history. Usually, the NFT marketplace has a section where the users can trace their trading history. This will help to understand how popular is the platform, what is being sold there, and the price. For instance, OpenSea trading history includes the following data: event, name, price, buyer, seller, date.
Trading history on OpenSea
Notifications. You can develop a push-notifications system to inform the users about new bets in their preferred category or shops, the status change, new messages, selling their lot, or updating the NFT platform.
Support. It is a crucial aspect of any trading platform. The support service will help the users to find answers, solve their issues and confrontations. It can be whether a call-center or email support, informational platform or chatbot.
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When the general concept and specification are ready, the developers can make you a development plan, estimate the time you will need and the budget. Then you can start making a project.
When the technical aspect and the plan are discussed, the team of developers can get down to work. Firstly, you and the business analyst or the designers make a concept of the user interface (frameworks, templates, prototypes) you describe the user stream and the functions. Then an effective architecture of the trading platform is created.
UX/UI design. The navigation and the user interface are crucial for NFT marketplaces, since the first impression, the usability, the user experience — all depend on it. So be sure that the design will be appreciated by the audience and that it will be simple enough, so anybody can figure out how to use it. It should remind them of Amazon or eBay.
Back-end and smart contracts. On this level, the internal(server part) is doing the job. Here a lot of important functions of the business logic and marketplace are developed, including the blockchain, smart contracts, wallets, and auction mechanism(many NFTs are sold on auctions). This is an example of the technological stack of the NFT marketplace back-end.
#1. What is NFT?
#2. How works the NFT marketplace
#3. Niches (sectors of NFT use)
#4. Main abilities of the marketplace
#5. Non-fungible tokens standard
#6. NFT marketplace development steps
#7. Step 1: starting the project
#8. Step 2: making a project and development process
#9. Step 3: testing of the product
#10. Step 4: releasing and supporting
#11. The cost of the NFT marketplace development