Find out how a successful NFT marketplace works

Nowadays digitalization is in vogue. Over time many new concepts are emerging. One of the new concepts in the digital world is NFT. Do you know what NFTs are and how they work?

NFTs (Non-Fungible Tokens) are basically digital works of art. This can be a painting, an audio file, a video or an image. NFTs confer ownership of the work to the user who buys or sells them.

The NFT market has blown up to such an extent that, at its current state, it is worth about $3.5 billion in total revenue with a growth rate of about 22%. At this rate, it is predicted that by 2027 the market will reach a value of approximately $8 billion.

There are dedicated marketplaces for NFT trading. These marketplaces are based on the blockchain model. Marketplaces are linked to various blockchain platforms that provide them with the service of storing or transferring data.

What is NFT Marketplace?

NFT Marketplace is a digital platform where one can trade NFTs. Whether it’s buying or selling, a good marketplace strives to provide an excellent and seamless experience for everyone.

Whether it is from the seller’s point of view or the buyer’s point of view, a good marketplace should be the most intuitive and interactive with the user. From the NFT Marketplace interface to the NFT Marketplace UX design, everything should be relevant and unique.

Another function of the marketplace is to mint NFTs. Minting an NFT means publishing an art piece to the blockchain. It contains all the information about the NFT, including the artist’s name and some necessary files that you have to provide related to the art. Minting an NFT yields a new unique token. It determines what you made and what you made, and how you are going to sell it.

NFT marketplaces charge fees to both buyers and sellers. The rate of fee varies from platform to platform. The transaction system mainly works on cryptocurrencies or credit cards. Some NFTs are sold at a fixed price, and some of them are set up for auction where buyers bid for them.

Building an Effective NFT Market

There are many factors that can lead to the success or failure of your marketplace.

Certain components and third-party services are used to design the best and most effective marketplace. Let’s take a look at some of those key components and services.

building components

• Client and Server Side: The marketplace should provide a simple yet attractive place for both buyers and sellers alike.
• Digital Wallet: Your platform should have almost all digital wallet options to make it easy for the users to transact on your platform. The process should be minimal and fast.
• Metadata: NFT metadata includes artist name, NFT description, creation date, etc. Basically, metadata contains the details of the NFT.
• Smart Contract: Smart contracts are used by marketplaces because these contracts can activate or deactivate NFTs. There can be only one owner of an NFT at a time.
• Blockchain: Blockchain is a system that cannot be hacked and is the most secure way to store data. Additionally, it is easier to transfer information through a blockchain system.

third-party services

• Programming Language: Various programming languages ​​are used in the process of developing an NFT marketplace. For example, golang And Perseverance are programming languages ​​used in back-end development and smart contracts respectively.
• Database/Cloud Database System: Database and cloud database systems are used by the marketplace to access a range of storage classes and different storage data volumes.
• Blockchain System: Blockchain alone is not sufficient for the functioning of the market. There are many services used for different roles. For example, to access the blockchain or track transactions, different software is used to perform each task.
• Price-tracking service: Programs such as CoinMarketCap provide services for tracking the price of transactions. This service is used by almost every NFT marketplace.

Important Features of NFT Marketplace

product presentation

A marketplace offers NFTs listed on its platform. To advertise and showcase exclusive and exotic art pieces available on the platform. Filters are available for the buyers to filter their NFT search as per their needs and search.

A product page has been set up for NFT which describes all the details of the product. Also, some catalogs display their product range and collections.

buy and sell nft

A good market provides the availability of options whether a person wants to sell a product at a fixed price or through auction. The trading system of the market should be flexible for any situation.

The marketplace charges a fee to both the buyer and the seller. For each sale or purchase, both the buyer and the seller are charged a fixed market fee and a royalty fee, respectively.
User Account Management

Full user authentication with email, contact number, password, wallet details and social media should be done before signing up for the platform.
The user profile should be genuine and not fake, with all the required information.

market administration

Content must be managed in full with all published information. Fast and automated sales reports and receipts to be generated with marketplace advantage.

An effective helpline system and contact options for the user.

Tips for a Successful NFT Marketplace

effective planning

The first step to a successful operation is always planning. You should plan what kind of audience you are targeting and what is the basic motivation for creating an NFT marketplace. Keep a strong foundation of thoughts and make your thoughts strong like a rock. Identify the risks and benefits you may face in each situation. Having a roadmap towards the goal can help.

dive deep

Deep diving means doing a thorough research about the project. Ask yourself whether you know all the needs and requirements of the project. Get in touch with experienced developers and technicians in this field. Understanding the process is an important requirement that you must fulfill.

think before you act

Think about whether it would be financially viable for you to invest in such a large project. Do not invest all your wealth in the project. Take baby steps and identify risks and opportunities at each step. Earn their trust, ask for feedback on your idea, and then decide.

test drive

By test drive, we mean drafting a smart contact that can help you out. Acknowledge all the possibilities and combinations that could cause your smart contract to fail.

Some Major NFT Marketplaces

Here are some of the leading NFT marketplaces that are worthy of your consideration.

relabel

Rirable is one of the latest marketplaces that are into NFT trading. Rirable was launched in 2020, and uses its own official currency, the RARI, which was launched about a year later.

Rirable is best suited for those who are into gaming or simply enjoy collecting NFTs.

binance nft

Binance is one of the world’s biggest names in cryptocurrency. Binance launches its new NFT marketplace in 2021. Buyers can get premium, and fine quality art pieces can be easily traded with this trusted platform.

Binance is a reliable and widely used platform. Its market is not much different.

magic eden

Launched in late 2021, despite being a new player, Magic Eden has grown its numbers drastically in terms of users. It is not listed on the most widely used NFT marketplaces. It uses an official digital currency called Solana.