Everything You Need to Know on How to Create an NFT Marketplace In 2022
Table of content
- Everything You Need to Know on How to Create an NFT Marketplace In 2022
- What is A Non-Fungible Token (NFT)?
- What is an NFT Marketplace Platform?
- What are the Best NFT Marketplaces?
- What are Types of NFT Marketplace?
- What Should You Know Before Developing an NFT Marketplace?
- Must-Have Features of NFT Marketplace App
- How to Build an NFT Marketplace App? Steps
- How Much Does it Cost to Create an NFT Marketplace?
- How to Create an NFT Marketplace With Interexy?
- Final Thoughts
The most popular and valuable option for any business to reap the benefits of the market’s popularity is a marketplace. This is because it offers convenience and simplicity in trading, purchasing, and selling the NFT. The popularity of digital marketplaces for such tokens is increasing day by day. So you will probably face many competitors when trying to develop an NFT marketplace app. This is where you can partner with an experienced company that will handle all questions and provides you with the final product that can overcome competitors.
In this article, we will briefly go through the most popular questions, like what is NFT and where it can be applied, what is the process of developing an NFT marketplace, and how do NFT marketplaces make money. And if you also want to enter the market, you need to make sure your product will be unique, feature-rich, and work efficiently. Let’s start with the basics.
What is A Non-Fungible Token (NFT)?
An NFT represents a digital asset that can be anything from the real world like art, music, in-game items, tweets, and videos. Due to their availability and affordability, NFTs are now widely bought and sold online, just like with cryptocurrency. Additionally, these tokens are generally encoded with the same underlying technology as many cryptos. Even though some believe that non-fungible tokens appeared only in recent months, they’ve been here since 2014. This industry is gaining notoriety only today, mainly among artists who want to sell their works and due to the fact that almost anyone can gain revenue in this domain.
Like cryptocurrency, NFTs are also unique ones and have identifying codes, so they can’t be replaced or stolen. However, most of the NFTs, at least in these early days, have already existed in some form elsewhere, like famous videos from NBA games or unique versions of digital art that have been published on Instagram. For example, highly popular digital artist Mike Winklemann, also known as “Beeple,” created a composite of 5,000 daily drawings to provide perhaps the most in-demand NFT of the moment, “EVERYDAYS: The First 5000 Days,” that has been sold for a record-breaking $69.3 million.
So if anyone can view the individual images in NFT marketplaces and within social media, why would anyone want to buy it for a bunch of money? This is because an NFT allows the holder to own the original item by having built-in authentication, which works as proof of ownership. In addition, most collectors value those “digital rights” even more than the item. Learn more about NFT here.
What is an NFT Marketplace Platform?
In simple words, the NFT marketplace platform can be called an old-school auction place. While in auction, unique, creative, and valuable assets have been presented physically, the marketplace app only allows them in the digital version.
The NFT marketplace facilitates NFT purchasing and trading at a global scale, while blockchain works as the underlying technology and guarantees transparency and immutable recording of the assets as well as the trading process. Most NFTs reside on the Ethereum cryptocurrency’s blockchain, which is a distributed public ledger that records every transaction that happens. The working process of the market relies on the following principles:
- NFTs represent individual tokens containing valuable information stored in them.
- Since they hold a value mainly from the market and demand, they are allowed to be sold and purchased like other physical types of art.
- NFTs’ unique code makes it hassle-free to verify and validate the ownership as well as the transfer of tokens among buyers.
Once opened and registered on the marketplace app, users can either upload or create their digital assets. Since most people don’t understand how do marketplaces make money, it is vital to note that users can also select which payment they would like to use when selling assets and set a fee the platform requires. The next stage is listing items for sale, which may also require a fee depending on the platform. Finally, the transaction is made when the user lists an item for sale that, in turn, launches a personal trading smart contract for the personal wallet.
What are the Best NFT Marketplaces?
OpenSea is now the most popular and widely used marketplace. Even though it is also the oldest one, it has gained popularity only in recent months. This is mainly because it hosts almost every kind of NFT, starting from art, music, photos, and sports collectibles to anything users want to create. OpenSea is like Amazon among marketplaces. In addition, it is also convenient, easy to use, and allows users to set up an account for free and start minting almost immediately.
Nifty Gateway has been shown to be the most eye-catching big-money NFT sales marketplace. This is because the two most expensive sales were: Beeple’s CROSSROAD and Pak’s The Merge. This app requires a fee for listing assets and is also hassle-free to use.
Rarible has been designed specially to sell both single pieces of art and collections. It is primarily used by those creating sports, gaming, and media items, as well as artists providing their collections of works. This app is also community-owned and is based on decentralization. It works with its own token, called RARI, and the users take part in moderation to help improve features.
What are Types of NFT Marketplace?
There are two main platforms the NFT marketplace work, and they include:
Multi non-fungible token websites are crafted to allow users to sell any kind of crypto items. It can be artwork or even a domain name. The most popular universal NFT platforms are Rarible, OpenSea, and Mintable.
Niche peer-to-peer marketplaces are designed to provide particular digital assets. For instance, Valuables is a platform where you can buy and purchase tweets. Another good case is Glass Factory, where users can buy and sell digital holograms.
In addition, marketplaces provide a wide range of spheres on which you can focus or combine all of them:
- Art Domain
Blockchain ledger has significantly transformed digital art. Artists now can create their artworks for sale without any theft concerns.
Even though art is the most popular industry for these tokens, gaming assets can now have unimaginable values. NFT allows gamers to tokenize their gaming items and establish proof of originality.
While it may sound unrealistic, musicians are now able to tokenize their songs that can be further sold or auctioned. And the demand for music worldwide drives the popularity of this industry.
- Real Estate
It is perhaps the most interesting domain for NFT, as it allows buyers to purchase virtual lands. The conversion of physical land into a digital asset eases the processes and completely avoids intermediaries.
- Investments and Collaterals
While it is not used worldwide, it is possible to use NFTs as collateral for bank loans only if the token complies with the listed requirements.
- Content Subscription
Content creators who produce books, guides, and lifestyle blogs can now turn their works into an asset and allow users to subscribe via NFT to read their content.
What Should You Know Before Developing an NFT Marketplace?
Since developing an NFT marketplace can be a tricky process for beginners, it is vital to learn some things before creating a concept. First of all, you will need to understand what the NFT marketplace is and how blockchain works. While there are many templates that allow companies to create their platform, it is always better to start from scratch and produce a custom solution. This is because the market is pretty overflowed with such clones, and users are looking for something unique, easy to use, and original for their assets.
When started, learn more about smart contracts and what they mean to your development process. The more features you need, the more knowledge you need to have. For example, you have to be familiar with the transparency and security the blockchain provides, as you will need to ensure that the app is highly protected. Another question you will need to identify is what monetization way you will use and how you will get income from the app. It usually works through fees users pay for listing and selling their items.
While everything above can be resolved through browsing and searching, the most complex thing for most people is non-fungible tokens standards used for the development. let’s get through the most popular ones:
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Must-Have Features of NFT Marketplace App
This feature helps users to check all the needed data on the lot, which usually includes name, price, description, payment method, owner, rating, and more. In addition, some marketplaces also provide additional information on the blockchain as well as the token protocol, allowing users to verify that the NFT is valid.
Make sure that your customers can easily find the item they came for. It would be the best idea to divide different assets into small categories. For example, art, photo, music categories, etc., so customers will easily navigate within the app.
Like with any other app, users will need to create their accounts. And with NFTs, this is an essential step to make sure everything that a user has in its account is protected. The sign-up process should be hassle-free, so make sure you provide all possible methods, like emails, phone numbers, or social media accounts. Some marketplaces also provide an opportunity to enter via Metamask. Check our crypto app development to learn more.
Creating an Item
This feature allows users to easily place their items, so you will need to make it hassle-free and understandable, like in OpenSea. To achieve high satisfaction, try to provide something called a collection manager. So users will quickly upload the product, enter the name, description, price, tags, and more.
To sell and purchase something within the marketplace, users will need first to have a wallet. While you may develop your strategy, the easiest way is to connect the app with the exciting cryptocurrency wallets. As a rule, most platforms work with Metamask, MyEtherWallet, and WalletConnect.
The best idea to keep your customers engaged and stay in close contact with them is to create a push-notifications system. This feature will inform users about new bets in their category, money transfers, status change, new suggestions, selling their lot, and more.
Since the NFT market is relatively new, some users may experience issues with creating, listing, and selling their items. This is why the support team should always be online and solve any problem users face.
How to Build an NFT Marketplace App? Steps
Now when you understand what NFTs and how OpeanSea works, you may decide to build your NFT market like OpenSea. Empire Global can help you in the whole process of creating a marketplace. If you want to build it from scratch, here are some basic steps:
- Select the Right Blockchain
The blockchain that you choose as the basics of your future NFT marketplace will impact the overall success of your project. So far, the most common blockchain platforms for such apps are Ethereum, Flow, Binance Smart Chain, Cardano, Solana, WAX, and Tezos. Learn more about each and identify what suits you best.
- Identify Audience & Perform Research
Since there are many applications in the NFT sphere, you will need to identify your target audience and learn about competitors. It is better to look at who is the target audience of the most popular apps and what features these apps contain.
- Create suitable UI For NFT Marketplace
It is essential to choose an experienced team of UX/UI designers who will be able to create the design that engages and still provide a smooth user experience. Since NFT apps differ from the rest, you will need to make sure the design caters to all specific requirements.
- Choose Tokens
Here you will need to find out what is the most popular domain in the industry and create a list of tokens your users will be able to create and sell. We mention the most common above, so take a look again and craft your own list.
- Develop Smart Contracts
This stage is probably the most important and difficult. While it can be developed by some engineers, it is better to hire a crypto app development team. This is because only high-skilled developers will be able to perform this task, and it will influence the whole process.
- Test and Deploy Marketplace
Testing is crucial, so it also should be performed by those who have already worked with blockchain and NFT. Make sure your app is free from bugs and complies with strict industry requirements before launching.
How Much Does it Cost to Create an NFT Marketplace?
The cost for NFT marketplace development varies. The final price depends on many factors like the app’s complexity, features, timelines, resources, and many more. While some decide to develop an app by creating their own team, the best way to reduce cost and time for development is to use NFT app development services provided by a trusted company. However, the price usually starts from $50.000.
How to Create an NFT Marketplace With Interexy?
Interexy is an experienced app development company that has been working with NFT projects and contains a team of only high-skilled experts. We strive to provide hassle-free, clear, and consistent development processes for every client and produce custom solutions that stand out from the crowd. Whether you just have a concept or you need a team to fulfill your skill set gap, reach us out.
NFT marketplaces are gaining popularity, and every day new ones appear on the market. They can become a great option for stable income for many years ahead but also require time and knowledge to make something unique. While you can create an app on your own, it is always best to reduce resources and hire a trusted app development company. Let us know your idea, and we will handle the rest!
What is the NFT marketplace?
NFT marketplace is the platform that brings together many people who want to create, sell and purchase digital assets known as non-fungible tokens.
How do NFT marketplaces make money?
While every marketplace has its own rules and monetization fees, most of them require a fee from users when they create, list, or sell items. The fee varies from place to place and can be up to $100.
How much does it cost to create an NFT marketplace?
There is no correct answer, as the cost depends on many factors. However, the price usually starts from $50.000.