How to Create An NFT Marketplace?
After cryptocurrencies, NFTs have become extremely popular among investors and crypto enthusiasts. Today, you can easily get to see news circulating on the web about the sale of NFTs for millions of dollars. Not only individuals and investors but businesses are also looking for opportunities to make money with NFTs.
Instead of selling and buying NFTs, businesses have the option to create their own NFT marketplaces where buyers and sellers can trade NFTs. With every trade, the marketplace owner gets a commission, which is a great source of revenue.
If you are someone interested in developing an NFT marketplace but don’t know where to start, we will help you out. We have curated this blog to help you understand how to create an NFT marketplace. So, let’s not waste any time and get started with a quick overview of NFT as well as an NFT marketplace.
What is an NFT?
NFT stands for the non-fungible token, and it is created using blockchain technology. NFTs can represent physical and digital assets such as artwork, collectibles, event tickets, music, audio files, videos, images, and much more.
Every NFT makes use of cryptography to protect itself from getting copied and unauthorized change of ownership. Unlike cryptocurrencies which are fungible, it is not possible to trade or exchange NFTs at equivalent values. Also, each NFT comes with a unique identification code and metadata that make it different from other NFTs.
What is an NFT Marketplace?
An NFT marketplace is simply a digital marketplace that allows users to buy and sell NFTs. You can sell existing NFTs or create new ones and sell them. Also, you can buy NFTs from a marketplace and store their private keys in a crypto wallet. It’s essential to have an appropriate crypto wallet to sell or purchase NFTs.
Following are some of the most popular NFT marketplaces:
How to Create an NFT Marketplace? (7 Easy Steps)
The idea of creating an NFT marketplace is viable considering the fact that the popularity of NFTs is going up day by day. If you want to create an NFT market, you need to follow the steps mentioned below.
1. Choose a Niche
The very first step in creating an NFT marketplace is to determine its niche and target audience. It’s always a good idea to make your NFT marketplace stick to a particular niche and offer something unique to your customers. This will help to make a lasting impression on the users and they will easily remember your marketplace.
Some of the most popular niches for the NFT marketplace include digital artwork, music, gaming content, and sports collectibles.
2. Select the Blockchain Platform
To build an NFT marketplace, you need to choose a blockchain for it. Ethereum is the most popular option right now, but there are several other powerful alternatives to it, such as Solana, Polygon, Cardano, Binance Smart Chain, and Tezos.
While using an existing blockchain can help to speed up the development of the NFT marketplace, it is quite difficult to deploy your NFT marketplace on them. Also, each transaction on these blockchains charges a fee, known as a Gas Fee. It restricts the commission you earn from each transaction in your NFT marketplace.
You also have the choice to create your own blockchain, but it will increase the development costs and users may not trust a new blockchain easily.
It’s quite important that you do proper research to identify and examine all the options before you select a blockchain platform for your NFT marketplace.
3. Design the UI/UX
Once you finalize the blockchain, it’s time to design the user interface and user experience of your NFT marketplace. You need to create mockups and wireframes so that it becomes easy to iterate the UI and UX design.
In general, the user interface of a marketplace must be clutter-free and visually appealing. On the other hand, the user experience should be such that users can navigate and interact with various features easily.
4. Front-end and Back-end Development
Now that you have the design of your NFT marketplace, it’s time to write code and transform it into a reality. Apart from the web version, you can also create a dedicated mobile app to make your NFT marketplace accessible to smartphone users.
You also need to program smart contracts that will act as the back-end of your NFT marketplace. Smart contracts make it possible to buy and sell NFTs as they are responsible for confirming the ownership changes on a blockchain network.
5. Test the NFT Marketplace
After your NFT market is ready, it’s essential to check its functionalities thoroughly before making it available to users. You need to test all the features of your marketplace and ensure that they work properly.
While testing, if you find any bugs or issues, you need to report them to the developers so that they can fix them at the earliest.
6. Launch the NFT Marketplace
Finally, you need to deploy the application on the blockchain and make it available to the end users. You need to leverage various marketing strategies to promote your NFT marketplace and make your target audience aware of it.
7. Support and Maintenance
Once you make your NFT marketplace live, you may have to make changes to it depending on the user’s demands. Also, you need to monitor its performance to make sure that users get the best experience.
All activities that focus on monitoring and improving your NFT marketplace comes under support and maintenance. It’s an essential step to ensure the proper functioning of your NFT marketplace.
Primary Features of an NFT Marketplace
The following are the standard features of any NFT marketplace:
A storefront is the most critical part of an NFT marketplace as it allows users to view various NFTs and their details like bids and price history. A visually attractive and easy-to-navigate storefront engages users and makes it easy to discover NFTs that pique their interest.
You can add various sections to your storefront, such as top NFTs, most trending NFTs, new NFTs, and so on. These sections will make your storefront more interesting for users.
This feature allows users to signup and creates their profiles on an NFT marketplace. In general, a user profile holds personal information, details of owned NFTs, and transaction history.
User Authentication and Authorization
You need to implement authentication and authorization mechanisms in your storefront to ramp up its security. User authentication is the process of verifying the identity of a user when they try to log into their account. On the other hand, authorization is the process of determining the access right of users.
Adding a search bar in your NFT marketplace will help users to search for specific NFTs with just a few keystrokes. You can also add filters, such as categories, price ranges, etc. to help users narrow the search results.
Users who want to sell NFTs can utilize this feature to list NFTs on your marketplace. The NFT listing process needs to be straightforward so that sellers get on board quickly.
The auction or bidding feature lets users place bids for NFTs. Sellers can list their NFTs and create a timed auction. At the end of the auction, the best bids will get the NFTs.
A native wallet allows users to store and access their NFTs quickly and securely on your marketplace. Building a wallet from scratch is a tedious process, so it’s better to integrate wallets offered by leading crypto platforms like Coinbase.
How to Proceed with NFT Marketplace Development?
Developing an NFT marketplace is a complex process that requires a team of experienced blockchain developers. While it is possible to create an NFT marketplace on your own, it’ll take a lot of time for you to learn the different aspects of NFT marketplace development.
Therefore, the best option is to hire a leading blockchain development company with expertise in NFT marketplace development. They will provide all the assistance required to turn your NFT marketplace idea into reality.
To Sum it Up
The popularity of NFTs is expected to continue rising in the coming years. With more and more people willing to buy and sell NFTs, it’s a great idea to create an NFT marketplace with unique features.
While developing a marketplace, it’s imperative to pay special attention to the features that it offers. A unique set of features helps your NFT marketplace to stand out from the rest and gain the attention of NFT enthusiasts.
For instance, when it comes to Ethereum, the most popular blockchain for NFT marketplaces, the high gas fee drives away many NFT buyers and sellers. So, you can deploy your NFT marketplace on other blockchain platforms that have a significantly lower gas fee. Also, you can set low commission fees to attract more users.
We hope that this guide helped you understand how to develop an NFT marketplace. If you have any queries or want to discuss your NFT marketplace development project with experts, feel free to contact us.