We are sure that you have heard about NFTs (Non-Fungible Tokens). Seeing this as a rise, many young entrepreneurs are learning how to create an NFT marketplace. Let’s talk about NFTs in depth and how to start an NFT marketplace.
NFTs Market, Statistics, and Analytics
NFT marketplace is a blockchain-based platform that enables users to sell and buy NFTs using a secure environment.
Despite the great crash of the recent crypto market, the NFT market is expected to grow to $13.6 billion by the end of 2027. Merge by Pak (Sold for $91.8M) and a monthly transaction volume of $4-16 Million is creating momentum for young startups to put their hands in by creating an NFT marketplace.
The popularity of the NFT market is greatly rising, with entities such as OpenSea, Nuqtah, and NFT Stars coming to the market. More and more people are learning the potential of this market and are learning how to build an NFT marketplace.
When Are NFT Used- Viable Cases
A Non-Fungible Token represents a token of ownership and authenticity of a specific/unique asset. NTFs are often compared to cryptocurrencies (which are also blockchain based). However, NFTs cannot be traded like cryptocurrencies.
NFTs are stored on a public blockchain and have information such as
- Who created the NFT
- Who Bought the NFT
- At What Price was the transaction done
- Who owns the asset
NFTs can be of any type. The most popular NFTs currently out there are in the form of
- Arts and collectibles
- Property and Land
- Music
- Games
- Tickets
More and more entities are transforming into NFTs. And, there will be a world where everything asset owned will be in the form of an NFT.
Technologies Involved in NFTs
Before learning how to build an NFT marketplace, it is important to understand the key technologies that are involved in the NFT marketplace. Primarily, there are two types involved in the NFT marketplace.
- Architectural Components
- Tech Stack and services
Architectural components involve the basics for operating an NFT marketplace. For example, a digital wallet is used for storing digital funds. NFT metadata, which provides data such as the description of the asset, creation date, ownership, etc. IPFS (Interplanetary File System) is a storage facility used for storing distributed blockchain networks. IPFS is used to provide lower power-consuming solutions. Another important component is smart contracts, which act as unique identifiers which differentiate between fungible and non-fungible tokens. Lastly, there is blockchain, which stores information about transactions.
Tech stack involves services that enable these transactions. For instance, Golang is used to create the back-end development. Solidity is a language used for creating smart contracts. LevelDB is used for database and fast blockchain access. Other key technologies involved are Infura.io, Ethereum, ETH Gas Station, and CoinMarketCap.
Key Features of Typical NFT Marketplace
Almost all of these mentioned features mentioned below are present in every NFT marketplace. Let’s see what these features are.
NFT product description
All NFTs platforms have a dedicated feature showing what actually these NFTs are. The section contains features, types, descriptions, images, and an authenticity certificate.
Buying and Selling
There is no point in creating your own NFT marketplace if there is no buying and selling option. Every NFT website has this feature, which enables users to buy and sell NFTs quickly.
Account Monitoring and Administration
Lastly, there is another feature, and that is account monitoring. Users are able to see what is happening on their accounts. They can see the latest trends, get analytics and perform transactions.
How To Create an NFT Marketplace
How to make an NFT marketplace? That question comes into the minds of every tech-savvy. Well, here are the essential steps.
Defining the Category of Market Place
The first move is to analyze the market and see what users prefer to use. Currently, there are platforms that enable users to sell art, collectibles, music, and so on. So, when creating an NFT space, check what type of NFT is popular and what types of websites are available out there.
Enabling the Blockchain network
With the requirements, you can start the process of enabling the blockchain network where the transactions will be performed. Usually, Ethereum is used for creating the network. However, it is not that important. Explore the other alternatives and see whether they are a good fit or not.
Creating the Smart Contracts
Smart contracts enable the transactions and mint NFTs when required conditions are met. ERC-721 standard is used to create the contract that differentiates between a fungible and non-fungible token.
Implementing the Marketplace
The next step is implementing and launching the market. Using tools such as React, Java, and DB software to create the web space where the users can transact the NFTs. Create the market space and launch it among the market.
Testing and Troubleshooting
Lastly, after launching the market, see for any bugs and errors. If there are any, resolve the issues beforehand.
The bottom line is you should create a marketplace that offers state-of-the-art features and enables users to perform transactions in a more efficient way. For you guys, we have enlisted too
