DataDrivenInvestor
Jun 9
Save
NFT market is on a surge. Making the most out of it by launching the NFT trading platform will be an ideal choice for 2022. Why can’t you take advantage of it? If so, in prior, have a profound knowledge of NFTs and the development process. Look at this informative blog to gain insights into NFT marketplace development.
Before digging deeper into the primary subject of this informative article, let’s know what exactly Non-Fungible Tokens (NFTs) are about at first glance.
Non-Fungible Token is an abbreviation for NFT, which will represent digital assets, more likely to be unique. Exactly saying, these are unique & non-interchangeable and hence one digital asset cannot be exchanged for another asset, making these can be bought using certain fiat currency or cryptocurrency.
Unlike fungible tokens, they cannot be swapped, and the non-fungible tokens, alongside transaction details, will be stored & safeguard on the blockchain ledger. Like cryptocurrency (for instance, Bitcoin), NFTs also hold the ownership details and this is for identification. Those individuals owning the non-fungible tokens will be able to add metadata or attributes which pertain to the digital assets.
Non-fungible tokens (NFTs) hold the following significant attributes. Check on these to have a better understanding.
The most significant attribute of NFTs is uniqueness, which establishes distinctive value for each and every token. The uniqueness of the Non-fungible tokens thereby ensures indivisibility. Indivisibility is something that cannot be divided into parts. When it comes to non-fungible tokens, there is no possibility of dividing the tokens into parts, and so they can be purchased on the whole.
Another critical attribute of non-fungible tokens is ownership. Only one individual can have ownership of the token. Moreover, the data of the ownership will be stored on the blockchain. The NFT owner lists the token on the marketplace for sale, which then will be bought by the counterparty and this individual will have the ownership of that particular token.
Authenticity and scarcity are the considerations that have gained profound attention. NFTs representing real-world assets must possess authenticity, which will distinguish one token from another. As deets regarding each NFT are secured on the blockchain, it is quite easy for individuals to look at the information related to the NFT users seek.
When indicating the scarcity, the individuals who created the NFT will have the entire control over the copies that can be made. One of the keys to the increased value of NFTs is scarcity. In addition to this, uniqueness plays its part. Rarity is something that ensures scarcity. NFTs minted with unique traits will bring a competitive edge.
Let’s take a scenario, 500 tickets for an event are available, the competition for buying those tickets will be considerably high. Whereas, if tickets available are 5000, the competition subsides. The same applies here to NFTs. The choice is up to NFT creators as they could mint the single unique NFT or different replicas of tokens with some distinctive traits.
Regardless of the mentioned significant properties of an NFT, it also possesses other considerable ones, including easy-to-trade, liquidity, operating on multiple blockchain ecosystems, royalty, and non-interchangeable.
NFT marketplace is nothing but a virtual platform that works on a peer-to-peer model, ensuring decentralization and operating on the blockchain network. It is where the users or NFT enthusiasts can buy & sell non-fungible tokens. Here’s what you to know about the functionality of the NFT marketplace.
Irrespective of whoever they are, NFT creators or NFT collectors, they have to begin by signing up their account with the required specifics. The initial setup process also involves verification, comprising KYC/AML compliance. This has to be done to verify the users’ identities.
Once done with the registration process, wallet setup is the next step. In this, users need to link their crypto wallet to the account they have created. Continue with funding in order to trade digital assets.
The creators will then be able to tokenize their digital works. That is, they can mint their tokens, which are then listed on the NFT trading platform after approval. While listing, they could specify the mode of payment to be accepted alongside must-have details regarding the tokens, which will include the name & description of the token, owner name, and acceptable pricing options — auction or buy.
On the counterpart, the potential buyers could explore NFTs on the NFT marketplace and pick the one which they like to buy.
When sellers list the NFTs for direct selling at a fixed price, the buyers looking to buy the token can purchase it by paying the buy price. In the case of sellers mentioning the bid price, the potential buyers need to participate in the auction. At the time of auction ends, the one who bids the highest will own the NFT.
When the seller accepts the deal, the payment transactions have to be done by the buyer. Soon after that, the NFTs being bought will be transferred to the buyer’s wallet.
Like eCommerce websites showcasing different products to be put on sale, there are various types of NFTs to be minted, listed, and sold on the NFT marketplaces. Here are some of the promising digital assets that can be tokenized and listed on the NFT trading platform.
Among many other types of NFTs, art is the most popular one and highly selling. NFTs have given a far more way for artists to sell their artworks as NFTs rather than opting for the traditional way.
There are presently many exclusive art NFTs that have made the biggest sale. To date, the following are some of the expensive NFTs that have been sold.
2. Music
Not only in the art sector, but NFTs have also revolutionized the music segment, in which independent music artists can take advantage of the present scenario and transform their works as music NFTs and sell them on the NFT marketplace. Kings of Leon (a popular American band) launched their album as NFT, which was sold for USD 2 million.
3. Videos/Photos/GIFs
Creators are able to monetize by selling their video/clip, photo, or GIF NFTs. For instance, Nyan cat GIF was sold for 300 ETH. A photo collection of Willian Shatner (Canadian actor) was sold within 9 minutes.
4. Memes
As anything could be NFTs, memes are too considered. There are times when no one could ever imagine that memes as a digital asset will be sold for the highest price. But, all because of the NFT craze, there are many memes NFTs were sold. Some of the classic memes that were sold as NFTs are listed here.
5. Other Prominent Types Of NFTs
Besides the above-mentioned ones, there are many more promising types of NFTs prevailing at the present time. Aside, the brand new types to be added to the following list in the forthcoming years.
NFT has become mainstream, with a soared trend in 2021, which has accelerated again in 2022. And therefore, the NFT marketplaces are. Today, there is an abundance of NFT marketplaces in various niches. Among them, the #5 top NFT marketplaces in terms of trading volume, sales, and traders (2022) are specified here.
In terms of sales, volume, and ranking, OpenSea holds first place with more than 1.5 million users. It is primarily based on Ethereum. Over time, it provides cross-chain blockchain support across blockchain networks like Polygon, Solana, and Klatyn. Its trading volume hits nearly about $3.2 billion. OpenSea supports the trading of assorted NFTs, including art, music, collectibles, trading cards, sports, domain names, utility, and virtual worlds. Moreover, it supports over 150 payment options.
2. Axie Infinity — NFT-Based Online Video Game
The number of active users of Axie Marketplace is about 1.5 million as of March 2022. Axie Infinity is indeed one of the popular play-to-earn games. Gamers or players will be able to buy Axies, lands, and other goods in the marketplace. Unlike other traditional gamers, players will hold the ownership of Axis and other NFTs they have bought. Utilizing this, they can participate in the battle and earn rewards once they win.
3. CryptoPunks/Larva Labs — 10,000 Unique Digital Items
Larva Labs launched the CryptoPunks NFTs collection in 2017. Any of the CryptoPunks NFT will be alike, as each and every NFT will be distinctive and is developed using the Ethereum standard. Its sales volume ascended by 560%, with a trading volume of $5.1 million. This itself brings trust among investors or NFT traders to purchase the NFT collections.
4. NBA Top Shot Marketplace — One-Of-Its-Kind Collectible Game
NBA Top Shot is a blockchain-based trading game that lets sports fans to trade in-game items which are from the most-iconic highlights of basketball video clips. NBA Top Shot moments are categorized into common moments, fandom moments, legendary moments, and rare moments. Buying the collectible items from the NBA Top Shot marketplace is quite simple as they have to complete the signup process. Approximately a monthly trading volume of NBA Top Shot is $36.94 million.
5. Rarible — Community-Centric NFT Marketplace
Rarible is a community-centric NFT marketplace that runs on blockchains including Ethereum, Tezos, Polygon, and Flow. Its trading volume is nearly around $273 million. It is quite similar to OpenSea when it comes to supporting different NFT types to be traded. This will include art, photography, DeFi, memes, music, domain, and others.
Marketplaces are giving opportunities for creators to mint their digital works and sell them as NFTs to the counterparty. Thereby, yielding benefits to marketplaces and NFT sellers. Even though the NFT market is flooded with profound trading platforms, there will be a good prospect for newbies who comes with their NFT marketplaces. The following ones are the approaches to be carried out for NFT marketplace development. Opt for any one of them.
To create an entirely new NFT marketplace right from the beginning, more investment is needed. Moreover, it needs more time, with the process involving designing, developing, testing, and deploying.
An alternative option that is a viable solution for empowering newbies to launch their trading platform instantly is the white-label NFT marketplace. It is a go-to solution backed by the blockchain and equipped with essential features. Compared to a previous option, it is time-conserving, paving the way for quick deployment.
A Specific Niche To Be Chosen — With diversified opportunities to be taken in the vertical NFT market, you have to be choosy in a niche. It is always better to cater to a specific group of people instead of everyone worldwide.
Identify Which Blockchain To Use — Ethereum is the first choice for entrepreneurs when they go to develop the NFT marketplace. Apart from it, other notable blockchains include Polygon, Solana, TRON, BSC, Flow, Polkadot, etc.
Features To Be Chosen — The very crucial step is to choose the features that will determine the functionality of the NFT marketplace. A list of unavoidable features includes the following.
Maintain Decentralization — It is one of the vital parameters, which will lead the way for gaining trust among the users. Creating the NFT marketplace on robust & appropriate blockchain brings decentralization, a peer-to-peer model. Transparency is what to be given utmost preference, which will give a clear-cut transactions history for users.
Have An Idea About Monetization Ways — The primary way of monetizing from NFT marketplaces is from transaction fees. Other significant ways include minting fees, initial setup fees, bidding fees, etc.
Reliable Developers’ Team Or Company To Affiliate With — Besides contemplating these aspects, whom you approach for NFT marketplace development plays a significant role. Therefore, have a keen eye on the company’s previous works, knowing the clients’ reviews to make a decision of choosing the most suitable one.
Knowing the budget is much more requisite. However, it is quite hard to determine the exact cost of creating the NFT marketplace beforehand as it is variable. It depends on numerous parameters, including the following.
The simpler the NFT marketplace is, the lesser will be the investment required for the development. It would be better to discuss your requirements with the developers’ team and get a quote.
The craze of NFTs is still at its peak, and hence it is undeniably the right time for individuals with an aspiration to launch the NFT marketplace and headstart their NFT journey much sooner. Foray ahead!!
—
—
—
empowerment through data, knowledge, and expertise. subscribe to DDIntel at https://ddintel.datadriveninvestor.com
TheBizz
in
The Social Interest
Maple Finance
Rickesh Waller
shroomzNFT
SCIFI Finance
Sal Miah
in
The Startup
Joseph
in
Qi Capital
Yogesh Kumar
AboutHelpTermsPrivacy
Hi there! I’m a writer covering the latest trends in blockchain technology.
Christian Edward
in
DataDrivenInvestor
DaniCrypto
in
Coinmonks
OnChained
in
CryptoStars
ViCA foundation
Help
Status
Writers
Blog
Careers
Privacy
Terms
About
Knowable

source