Non-fungible tokens (NFTs) have become a valuable asset class in the 2020s as the voices supporting the decentralization of the internet grew in volume. These blockchain-based virtual tokens have been staying in the limelight for a long time as people wrap their heads around the concept behind them. Such prominence has made NFT marketplace development an ideal business model in 2023, and creating such platforms is becoming easier with time. The domain today has been glimmering with hope as projects – existent and upcoming, have been trying out novel features and functionalities to come out at the top of the business space.
NFTs and NFT Marketplace Development: A Recap
We all know that non-fungible tokens (NFTs) are blockchain-backed tokens that represent an item as proof of authenticity and ownership. Also, NFT marketplaces are platforms where these token-backed assets can be created and traded seamlessly. They can be based on horizontal (general) or vertical (niche) commerce models, and their control can be either centralized or decentralized.
NFT marketplace development has yielded significant market presence in recent times as awareness levels have been rising among people, especially after the renaissance of digital artworks from a business perspective. In fact, NFT marketplaces have a huge part in 2021’s NFT boom.
Fundamental Architectural Elements of an NFT Marketplace
- Blockchain Networks are some of the essential elements of an NFT marketplace, as every transaction is recorded on these decentralized ledgers. There are so many networks available for an entrepreneur to choose from, with Ethereum, Solana, BNB Chain, Cardano, Flow, and Avalanche holding most parts of the market.
- Minting Tokens is another crucial aspect of these applications, as how the process can determine a platform’s success level. Provisions can be made to mint NFTs with and without a gas fee based on the blockchain the platform is built on.
- Web3 Wallets play a starring role in NFT marketplaces, as they permit users to hold and transact cryptocurrencies and NFTs for trading purposes. These can either be in-built as a one-of-a-kind extension or made as a linking portal where existing wallet accounts can be connected easily.
- NFT Metadata is a necessary architectural element for products as it stores their details, including descriptions, images, documents, price history, ownership history, and more.
- Storage Systems, such as IPFS (Interplanetary File Storage) and on-chain storage facilities, are paramount to storing NFT records in a decentralized and secure manner.
- Smart Contracts help create unique identifiers for NFT assets using relevant standards that enable ownership transfer seamlessly.
What Kinds of Assets can be Traded in an NFT Marketplace?
Coming to know the asset types that can be traded through an NFT marketplace, almost any product – digital or physical, can be exchanged. The potential of NFTs to support all kinds of items has been an accelerator to the Web3 space, as new use cases arise out of somewhere almost every day.
Popular asset types converted into NFTs and traded via marketplaces today include artworks, sports memorabilia, in-game assets, trading cards, video clips, images, profile pictures, fashion products, event tickets, and other collectibles. The possibilities could only increase as innovative-minded entrepreneurs search to make their ventures the most unique in the world.
The NFT Marketplace Development Process: Outlined
- Ideation – Includes collecting ideas and creating the official documentation
- Prototyping – Designing models of the platform’s user-end and testing it
- Design – Creating the marketplace’s UI and UX elements using apt frameworks.
- Development – Developing the application’s back-end by integrating blockchains and smart contracts.
- Testing – Involves putting the platform to multiple tests and resolving errors promptly.
- Launching – Releasing the NFT marketplace for public use.
- Maintenance – Maintaining the platform by releasing software upgrades based on trends and user traffic.
Is Developing an NFT Marketplace in 2023 Easy?
After looking at what it takes to launch an NFT marketplace platform, most of you might feel that NFT marketplace development is easy. The reality in 2023 also reflects the same, as numerous possibilities have emerged to appease the hunger of Web3-savvy entrepreneurs.
Today, one can go for an NFT marketplace created from scratch or a Whitelabel solution, or a customizable platform similar to an existing marketplace. The development model determines the easiness of creating the platform, with ready-made, customizable solutions leading over platforms built from scratch.
We can say that NFT marketplace development has garnered a great deal of attention in 2023 due to the model’s established nature. From a business point of view, the process has become comparatively easy, thanks to the increased understanding of the Web3 space among developers and enthusiasts. If you are looking to make the most of the evolving NFT space, this is the ideal time to begin a marketplace business. For professional assistance, it is best to work with an experienced company in the domain.