NFTs have lately been trending on social media. Non-fungible tokens are digital assets minted on a blockchain. It can be any digital form like music, painting, art, images, gifs, or videos. Any artist can list them on an NFT marketplace for auction. One of the most popular NFTs, Bored Ape Yacht Club, has listed the collection on the Ethereum-based marketplace OpenSea.
What is an NFT Marketplace?
An NFT marketplace is a digital space or market where creators list their collections for auction and receive payment in cryptocurrency. Some of the popular NFT marketplaces are OpenSea and Rarible, which host multiple hot collections like Bored Ape Yacht Club, CryptoKitties, and Mfers.
Since Ethereum was the first blockchain to offer marketplace development, it remains the primary for one of the highest-selling NFT collections, namely the Bored Ape Yacht Club.
How do NFT Marketplaces function?
Since the success of marketplace development on Ethereum, multiple other blockchains like Solana and Polygon are following suit. Before moving on to the topic of NFT marketplace development, you must understand how it functions.
Usually, all marketplaces have a similar working process where users sign up, connect their wallets, and trade or store NFTs. The process is quick and easy for people other than artists.
If you are an artist, here’s what follows after signing up:
- Create NFT art in accordance with the standards.
- Define NFT parameters in accordance with features or functions.
- List out all NFT collections for sale and wait for moderation to be completed.
- Open bidding on the platform for buyers
After a successful NFT sale, the marketplace will move the sale amount, which may include other digital products, to your wallet.
Since all NFTs must follow the protocols laid out by the smart contract, the entire process of buying or selling the collection on a blockchain-based marketplace becomes convenient.
Integrated during development, a smart contract is critical for the smooth functioning of any NFT marketplace. Caring for the nitty-gritty during marketplace development is key to a smooth functioning product.
If you want to create a marketplace that hosts projects similar to the Bored Ape Yacht Club (BAYC), you must know the design aspects.
How to create an NFT Marketplace?
End-to-end development of an NFT marketplace consists of multiple components.
Architectural components of the NFT marketplace:
- Digital wallet (to connect to the marketplace for payments)
- Marketplace (to buy, sell, or collect NFTs)
- NFT metadata (information on digital assets created by an artist)
- IPFS (data storage system for blockchains)
- Smart contracts (which create unique digital identities for each NFT)
- Blockchain (a globally distributed database to show transactions)
This is the basic architecture of an NFT marketplace. But how to custom build a marketplace for selling top projects like BAYC? Here’s the answer.
- Choose a niche
Finalizing a niche before starting the process is essential. There are multiple types of art that can be sold as NFTs, like music, images, sports memorabilia, or video gaming content. Choose an area where your expertise lies and build around it.
If you want to build a marketplace like OpenSea that hosts many top-selling projects like Bored Ape Yacht Club, you must custom build.
Get help from an experienced team to streamline your NFT marketplace development process.
- Select your preferred marketplace development company or platform
No one can single-handedly build a marketplace that receives high sales volumes. Select a few companies or finalize your assistance platform wherever you see fit. You must remember to choose a company or platform that has already produced results in the past. It will make the entire process easier and more reliable.
- Pay attention to UX/UI designs
UI/UX designs play a crucial role in attracting users and artists. An NFT platform must be easy to navigate. Here are some points you should keep in mind while developing an NFT marketplace:
- Easy storefront location (market to buy and sell)
- Swift product listing and use of filters like price, collection, and sale price
- Description page for each NFT to know its attributes.
- User authentication via social media, email, or digital wallet.
- User profiles of artists and users to know their transactions and NFT collections
- Artists with flexible pricing can review bid prices during and after initial sales.
- Fixed marketplace fees for both users and artists.
- Payments via a digital wallet or credit card
While these points are essential for a better user experience, some marketplace admin features are also crucial. They are:
- User profile management
- Content management
- Sale management
Also, here are the blockchains we recommend for developing your first NFT marketplace:
- Ethereum
- Binance Smart Chain (BSC)
- Polygon
You can either choose any of these or opt for a multi-chain platform that also resolves high gas price issues.
- Smart contracts should be integrated.
Once the front-end development is complete, it is time for you to integrate a smart contract for the proper functioning of the back end.
The back-end development varies drastically from the front-end development. It is because NFT marketplaces are decentralized that their data is stored on a blockchain. Smart contracts are key for exchange, ownership, clearance, and settlement of dues and digital currency.
- Platform for testing and launching
Once your web store or app is ready, test it to identify any shortcomings or bugs. Resolve the bugs, if any. Plan your NFT marketplace launch thoroughly and invite artists to list their collections on your platform.
Besides having a launch plan, lay out a strategy for post-launch as well.
Important characteristics of the NFT Market
- Cross-chain
- Auction
- Security
Final Thoughts
As our workplaces and lives move digital, NFTs will become a significant part of it, even more so when the metaverse becomes a general reality. Until then, it remains a vast space to showcase skills, creativity, or art collections.
Developing a swift functioning NFT marketplace that hosts top projects like Bored Ape Yacht Club or CryptoPunks becomes important. The key is to not miss a single step during the development process.
