Do you want to build your own thriving NFT marketplace? Since the release of CryptoKitties, the non-fungible token (NFT) industry has grown exponentially. So what is an NFT, and why are they so popular? While there are possible ways to utilise a readymade solution to launch your own NFT marketplace platform, it is more likely that you will need a developer to make an NFT marketplace work.
This article will break down everything worth knowing when creating your own NFT marketplace. Let’s get started!
What Is an NFT?
Non-Fungible Tokens, commonly known as NFTs, are digital assets featuring unique characteristics. They are pretty different from cryptocurrencies like Bitcoin and Ethereum, as those tokens are fungible. It means that in terms of value and properties, every BTC token is equal to all other BTC tokens present on the chain. That’s why conventional cryptocurrencies are transferable and interchangeable.
In simple words, if there is a unique digital asset that is linked to a blockchain, it can be called a non-fungible token. NFTs can include various digital assets such as art, digital collectables, domain names, unique memes, music, and more.
For example, Tweets can be classified as text NFTs. Jack Dorsey, the founder of Twitter, sold his first ever Tweet for a whopping $2.9 million. On an NFT marketplace website Similarly, digital artworks can also be considered an NFT. A digital art called Everydays – The first 5000 days was sold for $69 million! It is a collage of artworks created by a digital artist, Beeple.
In contrast, non-fungible tokens (NFTs) are distinct and cannot be divided into smaller units. They represent a unique piece of verifiable and transparent information in the blockchain. That’s why they are often delivered as individual licenses or mathematical verification certificates.
The Two Different Types Of NFT Marketplaces
Your Own NFT Marketplace: Personal
You are creating a personal NFT marketplace to showcase your work and promote your digital assets. It can be used to attract new customers who can then purchase part of your work as an NFT. An example of this would be an artist or a musician. Creating a personal NFT marketplace is more straightforward to accomplish than an NFT Platform. We have detailed how in the following two blog posts.
NFT Marketplace: Platform
An NFT marketplace platform is where users can sign up and sell their NFTs directly through the marketplace. For example, Opensea is a custom NFT marketplace that allows users to buy, sell, and trade various digital assets. The platform supports many file formats, including JPEG, PNG, and GIF files.
Opensea also provides several tools to help users create and manage their digital assets, including an admin panel that allows for the easy creation of custom NFTs. The platform is based on the Ethereum blockchain, ensuring that all transactions are secure and transparent. Opensea is an excellent option for those looking to buy, sell, or trade NFTs in a safe and secure environment.
So how to create an NFT marketplace?
Decide what your NFT collectable will be
When most people think of non-fungible tokens, they think of digital art or collectables. And while it’s true that NFTs can be used to represent just about anything, there are a few main categories that they tend to fall into. One of the most popular uses for NFTs is as a way to sell or trade digital art.
This can include anything from traditional paintings and illustrations to 3D models and animations. NFTs can also represent physical objects, such as limited edition prints or pieces of jewellery. And finally, NFTs are also being used to create new virtual worlds and experiences, often called “Metaverses.” These can be anything from social networks and games to educational platforms and marketplaces.
So, what should you create? The answer to that question depends on your interests and what you’re looking for in an NFT collectable. The important thing is to find something that you’re excited about and that you’ll enjoy creating.
Design the NFT marketplace website
An NFT website designer is responsible for the look and feel of the NFT marketplace. They determine the layout, colour scheme, and font style. An NFT web designer also creates a navigation system, which helps visitors find their way around the site. In addition, the designer often creates user interfaces, which are the graphical elements that visitors interact with on a website.
When designing an NFT marketplace, designers must keep usability and accessibility in mind. They need to ensure that visitors can easily find what they are looking for and that people with disabilities can use it.
A well-designed NFT marketplace will help to create a positive user experience, leading to increased traffic and conversions.
NFT Marketplace development
A website developer writes the code that makes a website work. Using the design provided by the NFT website design team, they work to create the website and its functionality. They also collaborate with clients to understand their business needs and goals for the website.
To create an NFT marketplace, a website developer will use different coding languages to build a website from scratch, such as React.js or Next.js. They are also responsible for the development process, including testing the NFT website before launch to ensure it works well and fixes bugs. An NFT developer should have strong problem-solving skills, as challenges are often encountered when building a website.
They also need to pay attention to detail to work under pressure to meet deadlines.
Create An A Smart Contract For Your NFTs
When you create an NFT, you’re essentially creating a digital asset that can be sold, traded, or exchanged like any other piece of property. But unlike physical property, NFTs are stored on the blockchain, a decentralised ledger that records all transactions.
This means that NFTs can’t be counterfeited or duplicated, making them unique and valuable. When you sell an NFT, the buyer typically pays a one-time fee. But with some NFTs, the artist may also opt to include a smart contract. This type of automatically-executing contract can distribute royalties to the artist every time the NFT is sold. For example, if an NFT is sold ten times, the artist would receive ten royalties.
A smart contract can also be used to manage ownership of an NFT. For example, if you want to give someone else access to your NFT, you can use a smart contract. This eliminates a third party, such as a lawyer or notary, to mediate the transaction.
When creating a smart contract, you’ll need to use a programming language like Solidity or Serpent. These languages are used to create contracts that run on the Ethereum blockchain.
Deploy your NFT smart contract and Mint your collection
Having created your NFT smart contract and had your website built, your NFT collection will be ready to be minted. You will now look to deploy your smart contract and launch your NFT marketplace.
What Is an NFT?
Creating your own NFT marketplace has many benefits, but to develop a reliable, stable, and secure platform, you will need professional assistance. It is recommended that you consult with different development agencies who have prior experience creating custom NFT marketplaces.
This will put you in a better position to identify the team of developers that fully understands your requirements and possesses the expertise and experience to deliver a reliable product.
NFT Marketplace FAQ
How much does an NFT marketplace development cost?
This really depends on a number of factors related to the complexity of the smart contract related to the function of the NFT and how many NFTs will be available. For example, a simple photography NFT collection whereby the user can simple mint a photographic piece of work will be relatively straightforward to create.
Compare this to a collection of 10,000 NFTs, with the option of trading and burning tokens,
What is lazy minting?
Lazy minting is a new way to mint NFTs that is cheaper and faster than traditional methods. The process uses IPFS, or InterPlanetary File System, to store and distribute the data for the NFT. There is no need to host the data on a centralised server, which can be expensive and slow.
Instead, the data is stored on a decentralised network of computers, making it much cheaper and faster to mint NFTs. The process of lazy minting is still in its early stages, but it has the potential to revolutionise the way NFTs are created and sold.
What are the most popular NFT marketplaces?
With the recent explosion in the popularity of non-fungible tokens (NFTs), several different NFT marketplaces have cropped up to cater to this new demand. Among the most popular are Nifty Gateway, Opensea, and Super rare. Nifty Gateway is considered one of the premier destinations for buying and selling NFTs, thanks to its exclusive selection of high-quality assets.
Opensea, on the other hand, is known for its large and diverse selection of NFTs, making it a great place to browse for potential purchases. Finally, Super rare is prized for its collection of one-of-a-kind NFTs, many of which are created by well-known digital artists.
What are alternatives to minting on the Ethereum network?
Polygon (MATIC) is a scalable solution for Ethereum that achieves near-instant transaction confirmations without sacrificing security. This is done by child chains connected to the main Ethereum blockchain via a relay hub. Polygon also has built-in support for various NFT standards, making it an ideal solution for selling NFTs.
And because Polygon uses Proof-of-Stake (PoS) consensus, transactions are confirmed much faster than on the Ethereum mainnet, which uses Proof-of-Work (PoW). This makes Polygon an attractive option for artists and creators who want to sell their NFTs quickly and easily.
When making transactions on the Polygon network, you will be charged gas fees in MATIC. These fees are used to cover the costs of processing and validating transactions on the network. The amount of gas you need to pay will depend on the complexity of your transaction and the current state of the network. You can see the estimated gas cost for each transaction on the Polygon block explorer. This is typically cheaper than using Ethereum.
What are the two different types of Ethereum Tokens?
ERC721
ERC721 is a smart contract standard for implementing non-fungible or unique tokens on the Ethereum blockchain. Unlike ERC20 tokens, each ERC721 token is unique and can represent digital or physical assets.ERC721 tokens can represent everything from digital art and collectables to tickets, loyalty points, and other assets.
The essential advantage of using ERC721 tokens is that they can be easily tracked and managed on the blockchain. This makes them well suited for applications where provenance or ownership needs to be verified, such as digital art or collectables. While ERC721 tokens are still relatively new, they have already gained widespread adoption and are supported by many exchanges.
ERC1155
ERC1155 is a blockchain technology that allows for the tokenisation of physical and virtual assets. It was designed to address the shortcomings of existing blockchain technologies, such as the lack of support for complex data structures and the difficulty of upgrading smart contracts. ERC1155 also introduces a new way of handling fees, potentially reducing the cost of blockchain transactions.
While still in its early stages, ERC1155 has the potential to revolutionise the way we interact with blockchain technology and could ultimately make it more accessible to mainstream users.
What is a 'Reveal' & 'Whitelisting'?
Reveal Stage
When you’re selling NFTs, the reveal stage is when your offer finally goes live to the public. This is when buyers can see all the details of what they are getting, including the price and any bonus content. It’s also when they can start making their purchase offers. The key to a successful reveal stage is making sure that your offer is attractive and competitive. It would help if you gave buyers a reason to want your NFT and then made it easy for them to buy it. By following these simple tips, you can ensure that your reveal stage is successful.
Whitelisting
When it comes to NFTs, whitelisting is the process of approving a select group of investors to participate in a sale. This is usually done to ensure that only serious, well-funded investors can participate. Whitelisting can also help to prevent scams and protect the project from volatile market conditions. While some view whitelisting as a way to be exclusionary, it can be a valuable tool for ensuring the success of an NFT sale.
Can I determine what royalties I receive when an NFT is resold?
When it comes to setting royalties for NFT transactions, smart contracts are your best friend. By using NFT smart contracts, you can automatically distribute royalties to the rightful owner based on various factors, such as how often the NFT is used or sold.
This ensures that everyone involved in creating the NFT receives their fair share of the profits. It also eliminates manual royalty distribution, which can be time-consuming and error-prone. So if you’re looking for a hassle-free way to set up royalties for your NFT, be sure to use smart contracts.
