5-step strategy to create your NFT marketplace in 2022-2023
“NFT marketplace is a blockchain-based web platform for buying and selling non-fungible tokens aka NFTs. If you are only at the beginning of your journey, and you have the plan to create an NFT platform for building, buying, selling, and/or auctioning NFTs. This blog is for you.”
Despite a slight slowdown in the NFT economy, the popularity of the online NFT art marketplace for digital collectibles is increasing day by day. According to Market Decipher, sports NFTs have doubled in 2022 with 100% growth, the 10-year CAGR (2022-2032) will be 36% and it can reach up to 40 billion by 2032. According to Business Research Insight, the global art NFT sector is expected to cross the $7 billion mark in 2028 from $1.5 billion in 2021, which itself is many folds.
This jaw-dropping exponential rise has sown the seed of a massive multimillion-dollar revenue structure in the NFT sector. This has encouraged not only mainstream corporations like Coca-Cola, Gucci, NBA, and Adidas, but also new startups and industries to enter the world of NFTs and get firsthand experience with NFT marketplace development.
In this blog, we are going to discuss everything you will need to develop an NFT marketplace in 2022-2023, but before that, let's talk about NFTs and their core areas in brief.
What is an NFT?
Imagine buying a piece of digital art on the internet at your price and getting a one-of-a-kind digital token that proves your ownership of the art you just bought.
It would be great. Wouldn’t it?
This has become possible with NFTs. NFTs are distinct tokens that represent proof of ownership. These NFTs could be anything, it could be art, music, jpeg, GIFs, game characters, real estate, etc. All such digital tokens are one of a kind because each one has a distinct identity in the blockchain.
These NFTs are stored in the blockchain with a few important pieces of information, such as the date of creation, the name of the creator, the seller's name, the buyer's name, the price, and so on.
Now, to sell and buy these NFTs, we need a sophisticated market system, and that’s where NFT marketplaces come in. These are the marketplaces that are solely responsible for the current exponential growth of NFTs.
What is an NFT marketplace?
The NFT marketplaces are web applications where anyone can buy, store, and sell NFTs for profit. These marketplaces contain collections such as art, music, GIFs, cards, memes, and so on.
These NFT marketplaces are broadly divided into two types:
a. Primary marketplace: This is all dedicated to an artist or creator. He or she can mint his or her NFT token and list them for sale.
b. Secondary marketplace: It is just like a shop where you can buy or sell or even resale your NFTs. To do that you have to create an account, publish digital works of art, and you are ready to sell your work on the marketplace.
Nowadays, NFT is not limited to digital art alone. It has spread its wings across a wide range of industries and sectors. It becomes a unique opportunity for individuals to show up and represent their collectibles in the digital market.
Let's take a look at some of the major sectors in which NFTs are heavily involved.
Use Cases of NFTs
NFT marketplaces have spread into many mainstream sectors, like:
Art and collectibles: These are the most common application of NFTs that most people are aware of. These Marketplaces are destinations for artistic gems where you can discover and purchase the most extraordinary pieces of rare digital art and collectibles.
Real estate: This is related to asset tokenization. It is a new virtual concept in which all physical and virtual properties can be represented as NFTs in the blockchain. This gives the owner a sense of ownership over their property. You can store specific information such as location, price, and measurement of your physical and virtual property, and the blockchain's immutability makes it tamper-proof to hack. It can be of two types: a. Physical real estate: Any physical real estate, such as a house, or building can be tokenized and turned into an NFT on the blockchain. b. Virtual real estate: Big virtual land companies like Decentraland and Sandbox are selling us digital plots aka virtual land.
Fashion: This is a new trend that has emerged from companies such as Gucci, Louis Vuitton, Adidas, and many other well-known brands. These companies along with new startups are also experimenting with virtual garments, virtual wear, etc. in the realms of NFT verse.
Gaming and metaverse: After NFT's inception, the one industry that has seen massive growth is the gaming industry as a whole. As different gaming models evolve, the play-to-earn model currently reigns supreme in the gaming market. In this model, players purchase items such as swords, shields, and costumes, with their coins and tokens, which can be used and further sold based on their rarity.
However, different niches have different requirements and target customers. but the core concept or process for creating an NFT marketplace is roughly the same. This involves a well-defined pre-structured path that industries follow to create a digital platform for buying and selling NFTs. Now let's have a look at the process which will help you to guide to make your own NFT marketplace.
How to create your own NFT marketplace?
Decide the niche: NFT is a rapidly evolving market that has not limited to artwork, real estate, and fashion but extends into some other core areas. So, before you get started with the NFT marketplace, you should pick a niche to work in. If you already have an idea of the type of market or services you want to provide then you can go with it, but still, you must be very clear on who your target audience is and what you offer them.
Eye-catching user interface: The UI/UX is an essential component because it describes the interaction of your customer with your company and product. So, your user interface must be clear and simple to the user. A good UI and UX improve usability and give the platform a great feel.
Blockchain Selection: The requirements of customers vary according to market sentiments and blockchain development, so selecting an optimal blockchain is an equally difficult task. You must also invest your heart and soul in it to find the perfect blockchain network for your NFT art marketplace that will benefit you the most.
Creating smart contracts: It is yet another crucial aspect of the NFT marketplace. The primary task of a smart contract is to mint NFTS, handle buying and selling of NFTs, and trigger purchase transactions. All of your transactions are recorded on the blockchain, ensuring an extra layer of security, but if there is any kind of vulnerability remains in the smart contracts, it will be disastrous for the applications. So, smart contracts should be smartly created and thoroughly checked to ensure that there are no security issues and that it is performing their function precisely.
Deployment of an NFT marketplace: Following the completion of all previous steps, the most important step involves the deployment of an NFT marketplace app. This is a critical stage in which you must always be aware of any vulnerabilities or bugs on the way to deployment.
According to the Chainalysis 2021 NFT market report, the value of the NFT marketplace has risen to more than 40 billion dollars. It proves that NFTs are no longer limited to digital art. So, if you are an artist, an organization, or an industry and you want to create your marketplace, whether primary or secondary, you don't have to wait for the perfect time; all you have to do is evaluate your niche and follow the steps to get into one of the most lucrative industries that creates value for buyers and sellers.
Dive into the world of NFTs today and launch your all-inclusive, unrivaled NFT marketplace with a slick interface tailored to your unique needs! Webmob software solutions are always ready to assist you at every stage of the NFT marketplace, from niche selection to final deployment. To learn more, contact us!