Non-Fungible Tokens (NFTs) are the game-changers in today’s crypto world. These new-age assets have gained colossal traction among the crypto community, and its potential is now gradually being witnessed by many well-famed influencers, celebrities, and creators as well. This is due to its ability to represent tangible as well as intangible assets. Its unique characteristics and scarcity give it an upper hand, and the sales of NFTs are at its peak touching millions and millions of dollars. Recently, one of the well-known marketplaces, OpenSea, hit a valuation of 1.5 billion, and the fund raised was nearly 100 million in Series B. It makes us understand how this fast-moving world has adopted NFTs in such a short duration.
So this blog single-handedly explains all the ins and outs of NFTs and eventually tells you the importance of developing your own NFT marketplace instead of being an observer.
NFTs – An Overview:
NFTs are tokens that are greatly different from regular cryptocurrencies. They hold unique data in each NFTs, making it non-interchangeable. Considering Bitcoin or fiat-currencies, they could be interchanged for other currencies owing to their similar value. Say, one BTC is equivalent to another BTC. But the same is not the case in NFTs. The value in the tokens could not be replaced, replicated, or even stolen. Also, they are indivisible in nature, meaning that the value could never be split or divided. NFTs can take the forms such as arts, intellectual properties, virtual properties, financial instruments, etc. It provides users ownership of assets and acts as proof of authenticity. Therefore, authenticity, integrity, originality, place of existence, and ability to be unique in nature make NFT a splendid asset in the crypto industry.
NFT Marketplace – An Outline:
An NFT marketplace is a kind of platform that permits the users to purchase, sell, and hold the NFTs. It is the place where NFTs will be listed for sale, and buyers would bid an auction to purchase them. In short, it could be compared to the crypto exchanges that usually allow users to trade cryptocurrencies. Here, the NFTs could be of any form – be it music, art, photo, video, virtual collectibles, digital accessories, and much more.
It facilitates the transaction only when the users have their crypto wallets. Through wallets, one could access the marketplace and safeguard the traded NFTs in the wallets. OpenSea, Rarible, and Mintable are some of the well-known NFT marketplaces. Also, the marketplaces are of two kinds – the one that acts as an open-source for all creators, while the other acts as closed marketplaces, which permit only approved creators.
Workflow of an NFT Marketplace:
The workflow of the NFT marketplace is so simple that it bestows users with a seamless and hassle-free NFT trading experience. To get started, let’s consider the perspective of both buyers and creators on the platform.
- A wallet is indispensable for any crypto-related platform. Therefore, creators have to either create a new wallet or sign up with the existing wallet.
- By using the wallet, the profile can be created.
- Once the profile is verified, the creators are now eligible to upload their content.
- They can convert their work digitally and upload it directly to start the process of minting.
- They can now provide the description of the product, including name, title, price of NFTs, etc.
- On successful completion, the work can be minted.
- The digital work will be tokenized into NFTs.
- Now comes the listing process.
- The creator has two options – either to list their NFTs on auction or on fixed-price sale. They can prefer one of two to list the NFTs.
- The profile creation step is similar to that of creators.
- On successful verification of profile, they will be eligible to purchase their favourite NFTs.
- If the NFT is listed on auction sale, then users can bid within the specified time limit.
- The highest bid placed within the duration is considered to be the winner of the auction.
- If the asset is listed on a fixed price sale, then it can be bought directly from the creators.
- Also, some of the marketplaces allow buyers to propose an offer to creators to negotiate the price of NFTs (in fixed-price sales).
- If the creator accepts the offer, then it can be purchased at the quoted price, or it can be purchased by paying the actual price.
Features of NFT Marketplace:
Attractive Storefront: Storefront is a place where you can seize the attention of buyers in an NFT marketplace. This feature will make the storefront fascinating and stimulates the users to purchase the NFTs,
Advanced Search: This feature allows users to land on the right asset as it is equipped with sort and filter options to meet their requirements.
Easy and Simple Listing: There are no complications involved for creators to list the NFTs in the platform. It is entirely their choice to list the NFTs either in auction sale or fixed-price sale.
Built-in Wallet: The wallet stands as an effective storage medium to safely secure the traded NFTs of users.
Interactive User Interface: The platform is delicately built to provide users a seamless and frictionless transaction experience.
The Benefits of NFT Marketplace:
Proof-of-authenticity: The creator’s works are properly recognized, and the rightful owners are bestowed with immutable ownership rights.
Scalability: The modern-day blockchain networks will act as a robust base for these marketplaces and bestow them with a higher degree of scalability.
Swift Transaction at Lower Cost: It facilitates users with faster transactions at an affordable price. The NFTs will be sent to the wallet directly.
Security: The marketplaces are highly secured. The use of smart contracts will automate the process and does not give space to any nefarious activities.
Liquidity: NFTs can be traded instantly, which ultimately provides higher liquidity. It allows users to keep NFT as collateral, and they can avail other crypto assets or fiat currencies in exchange.
Interoperability: The cross-chain ability will allow the participants to establish a connection with multiple blockchain networks.
Launch your own NFT Marketplace:
NFTs are booming all over the world, and millions of users are making the best use of the platforms to reap huge profits. It is a reliable and efficient business model that would enable NFT admirers worldwide to access their desired products with ease. The potential of NFTs is rising day after day, and lots of assets are being tokenized into NFTs today. So it is the right time to kick-start your own NFT marketplace. The soaring trend and increasing demand for NFTs would make your crypto business reach greater heights.
Which is the right place to develop your NFT Marketplace?
A professional blockchain and cryptocurrency development company is the ideal place to develop. These adept organizations will have hands-on experience in creating such marketplaces and render the exact output to your thoughts. They can also personalize the features and functionalities to match your business essentials. Some of the proficient organizations provide white label NFT marketplace development solutions to save your time and capital. It is a ready-made NFT platform that can be launched instantly within a matter of days. So approach the right place to turn your NFT dreams into reality.