Non-fungible tokens (NFT), which were first released in 2014, are experiencing remarkable growth. According to Reuters, the NFT token market exploded in the second quarter of 2021, with sales totaling $2.5 billion, up from $13.7 million the previous year. NFT marketplace whitelabel platforms give vendors with tremendous options to contact the audience and generate profit by allowing digital content creators to safeguard their intellectual property. Furthermore, online NFT marketplaces ensure that digital commodities offered by sellers are genuine. Investment in startups is quickly expanding because NFT marketplace apps address the pain concerns of both sellers and customers.
From top-priority features to software technologies that developers may leverage, this article explains how to design an NFT marketplace solution. But first, consider the operating premise of a non-fungible token marketplace.
NFT marketplace definition and function?
NFT tokens are unique and held on the blockchain decentralized distributed ledger, representing intangible non-interchangeable units (pictures, 3D models, in-game goods, animated GIFs, video and audio records). NFTs are similar to other crypto tokens in terms of functionality, but unlike Bitcoin and Ethereum, they are not fungible.
Each token carries a little bit of data that is unique. Content elements that are linked to the blockchain cannot be falsified or stolen. In this approach, online NFT marketplace platforms safeguard suppliers’ intellectual property.
Artists, singers, influencers, and other content creators trade non-fungible tokens through an NFT marketplace app, while consumers buy products at a fixed price or at an auction. Shoppers and suppliers must utilize a crypto wallet to make purchases, complete transactions, and store tokens. A customer receives a URL to a file after making a purchase, and the money is sent to the merchant’s wallet. As a result, NFTs are URLs rather than files.
Content owners must usually complete the following procedures before they can begin selling on an online NFT marketplace:
Creating or using an existing crypto wallet to register on an NFT marketplace platform.
NFTs are being produced. This entails uploading and selling digital assets in a variety of forms, ranging from JPG to MP4. In fact, the goal here is to convert a file into a crypto asset that can be sold or purchased without the use of a middleman. A content owner can set up royalties for each future sale while minting an NFT. There may be some differences amongst blockchain systems as well. On an Ethereum-based marketplace, for example, gas expenses must be paid in order to mint NFTs.
Vendors can begin receiving payments and bids after digital goods have passed moderation and been visible to potential clients. The highest bids are notified to NFT token owners when the auction ends.
There are numerous NFT market niches, including:
Art. Paintings, 3D models, GIFs, songs, films, and other digital art units can all be delivered via these platforms.
Games on the computer. Customers can buy characters, in-game stuff, and user accounts. The security of transactions is ensured by NFT markets. In essence, players can buy in-game tokens and then resale them at a higher price to profit.
E-learning. Online education services such as courses, lectures, and training programs from organizations, individual specialists, and institutions are available through NFT marketplace apps.
Investment. Asset trading (shares, bonds, exchange-traded funds, property rights, and so on) and cryptocurrency exchange are both possible on NFT investment marketplaces.
Online NFT marketplaces, which are powered by blockchain and smart contracts, manage the transfer of monies and digital assets through trade and auctions. NFTs work on networks that enable smart contracts because they normally operate according to specified terms and rules (e.g., Polygon, Binance Smart Chain, Tron, Solana).
As a result, it’s critical to find a reputable blockchain development firm that specializes in multi-sided platforms to create an NFT marketplace.
OpenSea, Rarible, Nifty Gateway, NBA Top Shot, SuperRare, and Foundation are examples of well-known NFT marketplaces.
OpenSea, an online NFT marketplace, has a unique design.
Building a performant and scalable NFT marketplace isn’t enough to succeed in today’s highly competitive market. It is critical to create an appealing user interface (UI) / experience (UX) design in order to attract and maintain the audience.
According to SWEOR, over 95% of negative feedback is due to poor design, whereas a modern, user-friendly design adds to a positive first impression and lower bounce rate. According to Adobe, 38% of website visitors will stop using the product if the layout or content is unappealing. In this light, the establishment of a UI/UX design is a vital stage in the development of the NFT marketplace.
We recommend that you develop a unique branding concept to get a competitive advantage and raise brand awareness. It’s also critical to organize platform information and functionality so that token owners and customers can discover what they’re looking for quickly.
If you’re planning to establish a web NFT marketplace, make sure it’s mobile-friendly. According to SWEOR, 83 percent of mobile consumers believe that a consistent experience across all displays and operating systems is essential. You will construct an NFT marketplace that will engage merchants and customers in collaboration with a reputable UI/UX design firm.
The nine most important elements of the NFT marketplace
1. Log in and create an account using a cryptocurrency wallet.
Both vendors and buyers must create a personal account in order to sell and buy non-fungible tokens. They must use their crypto wallets for this reason. Users can also save, receive, and transfer NFTs and cryptocurrencies using a wallet.
To improve the user experience, you should allow users to register and authorize using a variety of wallets, such as MetaMask, Coinbase, MyEtherWallet, Blocto, Fortmatic, and Torus. A browser extension from the NFT art marketplace Foundation allows content creators and users to connect their MetaMask Ethereum wallets. MetaMask, Coinbase Wallet, TrustWallet, Portis, Arkane, Kaikas, and OperaTouch are among the wallets that network members can utilize on OpenSea, the world’s largest NFT marketplace.
Software engineers combine an NFT marketplace solution with APIs from popular digital wallets to provide this feature. Some solutions offer several wallets, allowing for a faster feature release cycle. NFT marketplace developers, for example, can connect over 75 popular wallets by implementing the WalletConnect API.
It’s worth mentioning that the crypto wallet you use is determined by the blockchain platform you employ to build the NFT marketplace. For example, if a corporation wants to build a Tron-powered NFT marketplace, it must link TronLink.
Consumers can access information about digital items offered, such as a token name, cost, unit description, owner name, allowed payment methods, and trade history, through a shop window, which is one of the key NFT marketplace features (a section where customers can track their transactions).
Customers can easily verify the legitimacy of non-fungible tokens by using NFT marketplace apps, which can provide facts such as blockchain protocols.
3. Perform a search
The addition of search functionality is part of the NFT marketplace development. To increase consumer engagement and retention, software programmers must make item search as simple as possible, allowing customers to browse products much more easily. It is critical to supply a variety of categories, such as art, collectibles, domain names, photography, music, sports, trading cards, and virtual worlds, for this reason.
Users should also be able to sort digital assets using multiple filters. For example, OpenSea allows customers to search for units based on their state (buy now/on auction, new, has offers), price, and other factors. OpenSea also has a number of filters for various NFTs. Users can search for a certain unit, such as a digital space squirrel, by looking at their clothes, rings, tattoos, and dreadlocks.
In comparison to other well-known NFT marketplaces, SuperRare allows customers to sort content units—single-edition artworks—by lowest and highest prices, newest and oldest products, as well as now live and soon-to-end auctions. Rarible, another well-known NFT marketplace where customers may acquire digital memorabilia, offers sections for hot bits, top sellers, and live auctions.
One of the primary aspects of the NFT marketplace is the easy-to-use auction system. It is critical to include a description section for lots when building this capability, which might include information such as the name of an NFT and vendor, an image, the cost, and approved payment options.
Customers should be able to suggest pricing, examine the amount of the most recent bids, and check the expiration date. It’s also critical for buyers and owners of digital assets to be able to watch the progress of bids and lots.
5. Creating a listing
It is critical to give content creators with the ability to readily create listings in order to construct an NFT marketplace that meets the needs of vendors. A software platform should have a page dedicated to digital item submission, with features like title, tags, and description. Sellers should be able to monitor the progress of their postings as well.
6. Payments over the internet
To promote value exchange between suppliers and customers, an NFT marketplace software should offer a number of payment mechanisms. With this goal in mind, software programmers must ensure that various cryptocurrencies are supported (e.g., Bitcoin, ETH, Litecoin). It is also appropriate to offer the option of purchasing digital content units with credit cards.
Customers can use MATIC, BNB, and SAND crypto tokens, as well as credit cards, to purchase collectibles, gaming assets, and other things on Venly Market. Along with ETH, another prominent NFT platform, Markersplace, allows users to purchase artworks using credit cards and PayPal. Users can buy digital art and collectibles on the Nifty Gateway NFT marketplace using prepaid ETH, Gemini Balance, credit, and debit cards.
Software specialists can integrate a payment gateway API to process and authorize transactions in order to provide a variety of possibilities. Software engineers, for example, can enable payments via cards (Visa, Mastercard, American Express, Discover), bank account, PayPal balance/Credit, and user incentives by integrating PayPal.
Learn how to choose an e-marketplace platform’s gateway solution.
It’s critical to provide rankings when creating an NFT marketplace like OpenSea. Customers will be able to track the top non-fungible tokens using various filters like as turnover volume, floor price, and the number of owners, among others.
8. System of alerts
It’s reasonable to include a notification system in an NFT marketplace to alert consumers to new bids, digital products for sale, lot status changes, special deals, and new collectibles posted by beloved content creators. Platform operators can improve user engagement and conversion rates by using this functionality.
Software engineers can combine an online NFT marketplace with an application programming interface, such as Firebase, to provide this capability. Learn more about digital marketplace third-party integrations.
Owners of NFT marketplaces will have access to an admin panel.
When considering how to create an NFT marketplace, an admin panel should be at the top of the list of must-have features. In actuality, a platform operator’s administrator panel is a web application that allows them to manage listings, track payments, check sales reports, and set up commissions.
Additionally, operators of digital NFT marketplaces use an admin panel to check item and profile submissions. It is critical to provide role-based access control in order to enforce security. You’ll be able to see who made which adjustments as a result of this.
Cost For setting up an NFT marketplace
The cost of creating an NFT marketplace similar to OpenSea is determined by the amount of time required for product delivery as well as the wages of software experts. Because software engineer hourly rates vary widely between nations, startups and businesses around the world are increasingly outsourcing their software projects to save money and gain access to specialized knowledge.
IT service providers in Western Europe, for example, charge between $40 and $100 per hour. In the United States and the United Kingdom, software development businesses’ hourly charges might range from $50 to $150 or even more. In comparison, software engineering firms in Belarus make $20–$50 per hour, yet designers, programmers, testers, and business analysts have the same abilities and knowledge. So, let’s take a look at a rough estimate of how much money you’ll need to set up an NFT marketplace.
The cost of developing an NFT marketplace platform such as OpenSea is as follows:
Outsourcing marketplace development to US can help you save 2.5–3 times on costs while maintaining or improving end-product quality. Learn how we builds productive client relationships by ensuring process transparency and data privacy. Suffescom, a reputable and award-winning marketplace development business based in US.
How can an NFT marketplace like OpenSea be profitable?
Because NFT marketplace app operators do not manufacture or sell digital assets, monetizing an online NFT marketplace platform is required to make a profit. The monetization technique you select has a direct impact on your earnings. As a result, it’s critical to think about this when developing an NFT marketplace solution.
You can use a variety of methods to monetize your website. The most common income strategy for NFT marketplaces is transaction commission.
In terms of real-world instances, SuperRare, a rapidly expanding NFT marketplace for trading unique digital artworks, charges clients a 3% transaction commission on all purchases made on the platform.
In addition, for primary sales, SuperRare charges a 15% artist gallery fee, while content creators are paid a 10% royalty on secondary purchases. SuperRare makes use of Ethereum smart contracts to govern the flow of cash.
Another monetization approach that a digital NFT marketplace can use is advertising. You may, for example, charge NFT holders to have their things displayed in sponsored banners, trending collections, and best auction offers.
A guide to marketplace monetization can help you understand more about revenue models.
Technology stack to create an NFT marketplace
Before developing an NFT marketplace app, keep in mind that this type of solution is likely to service a wide audience and provide a consistent user experience, such as fast page load times and availability even during peak periods.
To construct an NFT marketplace platform that meets quality standards and software requirements, selecting the right technological stack is critical. Engineers can accomplish scalability, fault tolerance, and performance by utilizing software technology. It is also possible to ensure security while automating the establishment of an online NFT marketplace.
It’s worth noting that creating an NFT marketplace has its own set of requirements. To begin, non-fungible tokens are held on a decentralized distributed ledger called the blockchain, and NFT exchanges are typically run on the blockchain. Second, smart contracts are designed to allow money to be transferred. Software specialists can utilize the Solidity programming language for this.
You can also seek advice from a reputable marketplace development firm, which will assess your goals and create a technology stack to meet them. We will also help you choose NFT marketplace features, choose a software architecture, and outline a project implementation plan.
Why should you work with Suffescom to create an NFT marketplace?
Suffescom, assists startups and SMEs in delivering innovative solutions in highly competitive sectors while also increasing income. Suffescom is an online marketplace development company based in United States that serves industries such as e-commerce, art, healthcare, e-learning, real estate, and hotels. Furthermore, our company has vast experience developing blockchain technologies, making us an excellent partner in the development of an NFT marketplace.
Our company has already built a number of marketplace web and mobile systems, NFT minting website development. Our software developers deliver scalability, high availability, resilience, and security while automating testing and deployment using cutting-edge technologies and best practices.
Send us a mail if you want to build an NFT marketplace app. We will respond within one business day and assist you in resolving any issues. The project consultation is free of charge.