How much does it cost to develop NFT Marketplace?
While turning the pages of history, we reach May 2014, when the first-ever NFT artwork, Quantum, was minted. In June 2021, it was sold for $1.47m. One more second-most expensive NFT, Beeple’s “Everydays: The First 5000 Days,” was minted on Feb ’21 and was sold for $63.3 million in November ‘21.
Since then, the game of NFTs has been a howling success. In the forecast period of 2012 to 2026, the non-fungible token (NFT) market caught up with a valuation of $147.24 billion, that’s quite a healthy growth at a CAGR of around 35.27%. In 2021, it was valued at approximately $40 billion, a considerable surge to witness soon.
Some people are helping themselves by playing the role of creator, while some are hiring an NFT marketplace development company to accomplish their NFT marketplace development projects. Developing an NFT marketplace is economically a worthwhile opportunity to catch up with higher returns by capitalizing on the increasing NFTs demands.
You can also opt for any options mentioned above and appreciate the advantages of NFT marketplaces. Before that, let’s review the latest relevant insights and understand how to build an NFT marketplace, must-have features, challenges you may catch, resolutions to overcome them, and much more.
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What Is the NFT Marketplace?
A platform where users can trade, buy and sell non-fungible tokens (NFTs) is an NFT marketplace. These tokens, unique digital assets, are stored on a blockchain and can showcase various things, like artwork, virtual real estate, and collectibles.
The creators can use NFT marketplaces for their digital creations monetization and permit collectors to trade and own unique digital assets. Some of the giants that are already ruling the market are Rarible, Opensea, and SuperRare.
How Does NFT Marketplace Work?
Typically, an NFT marketplace permits users to buy and sell NFTs on a platform. These digital assets are unique and can’t be replaced by another similar item. Usually, they are used to exhibit collectibles, digital art, and other digital assets.
Below are the steps you may follow to learn the working of NFT marketplaces.
Creators can upload their digital assets and mint them, like audio, video, and image files, to the marketplace. For the NFT, they can set a price and metadata, like a description, name of the artists, and other relevant information.
When an NFT is minted, you can list it on the marketplace for sale. By browsing the marketplace, users can view the available NFTs and filter them by different criteria, like price, categories, etc.
Using a cryptocurrency, like Ether or other supported tokens, users can buy NFTs. After completing the NFT purchase, it’s transferred to the digital wallet of the purchaser.
Users can view the metadata of their NFTs, share them with other users, and even view their own records to conduct NFT management effectively.
Typically, the marketplace tracks the value and price of NFTs gradually and offers related analytics and data about the NFT trends and market.
The NFT marketplace can be centralized or decentralized. In the former, a central authority regulates the marketplace, like an organization or a company. In contrast, in the latter one, the marketplace is developed on blockchain technology that facilitates peer-to-peer trading with no central authority.
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What Types of NFTs Are Eligible To List on Marketplace?
Suppose NFTs are digital products, and your marketplace is an online store. NFT marketplaces are like eCommerce platforms where the first aims at different niches; the second trades clothing, fashion accessories, home furnishing, and more.
You may choose one of the two chief alternatives:
- Either develop a universal marketplace or
- Create a niche-specific marketplace.
In the universal marketplace, you can list varied NFTs, while in the other, you can only include a particular type of non-fungible token.
So, before you start your NFT marketplace development process, you should know about the available NFT types.
It includes digital paintings, digital sculptures, and illustrations.
It includes in-game items, virtual trading cards, and other digital collectibles.
Virtual Real Estate
It includes virtual buildings, land plots, and other virtual world properties.
Every marketplace may have its specific rules and regulations, and guidelines for NFTs that one can list.
Top NFT Marketplace in the Market
One of the most popular and largest NFT marketplaces, OpenSea specializes in virtual land, digital collectibles, and other exclusive digital assets. This platform holds varied offerings and a robust community of collectors and creators. This NFT marketplace facilitates users to build, buy, trade, and sell unique digital assets and is one of the leading platforms for the development they can choose.
One of the top NFT marketplaces for digital art and other exclusive digital assets, Rarible is a decentralized marketplace developed on the Ethereum blockchain that permits creators to set their prices and get control over their work. This marketplace also holds a strong community of creators, collectors, and various offerings.
A curated NFT marketplace for digital art, SuperRare features one-of-a-kind and top-quality digital artworks from worldwide artists. The platform aims for curation and quality, ensuring that the paintings on this platform are high quality and unique. This marketplace is a fantastic platform for the one looking for new digital art and for the collectors who want rare and unique digital artworks.
An NFT marketplace, Nifty Gateway targets limited-edition and occasional digital art and collectibles. Usually, it’s associated with famous cultural figures and celebrities. This NFT marketplace showcases an appealing and user-friendly interface perfect for finding rare and unique NFTs with a pop-culture touch.
A widespread market for digital art and collectibles, KnownOrigin is also famous for its curated digital art collection from established and emerging artists. This NFT marketplace arrives with a visually-appealing user interface that is easy to navigate and is a perfect spot to find exciting and new digital art from worldwide artists.
Why Invest in NFTs Marketplace Development
Well, investing in NFT marketplace development can be profitable for various reasons. Some of the major stats that will demonstrate the future growth in the NFT market are as below:
In 2020, the global NFT market size reached $2.2 billion, and by 2028, it’s likely to be valued at about $9,58 billion, with a surfacing CAGR of 22.3%.
The NFTs demand has been growing with the increasing number of NFTs sold in the last few years. In 2020, the total number of sold NFTs reached 2.5+ million, a significant surge compared to the previous year.
Many NFTs were sold for millions of dollars earlier, and the ROI for some has been extremely high. For instance, an NFT by Beeple was sold for about $69 million in a March 2021 auction.
These figures show that the NFT market will likely expand rapidly and holds a significant possibility for a greater investment return. Investing in NFT marketplace development can offer a way to mark the footprints in this growing market and make money on the growing demand for NFTs.
What Are The Key Features Of An NFTs Marketplace?
Listing And Selling Functionality
This feature lets the users list their NFTs and sell them on the marketplace. It includes the trait for price setting, list creation, and sales management.
It arrives with the capability to integrate with the cryptocurrency wallet of the users, permitting seamless transactions and facilitating NFTs management.
It provides the power to track and manage NFTs on the blockchain, including the caliber to view the token details, track transaction history, and transfer ownership.
Search and Discovery
The advanced search and discovery trait includes the caliber to filter and sort listings, browse by categories, and search by keywords.
It facilitates the users to interact and link with other users on the NFT marketplace, like leaving comments, creating communities, and following other users.
It lets the curators, marketplace, and artists curate and list the collections on the NFT marketplace themselves.
Data Analytics and Reporting
These tools enable the marketplace to supervise the platform’s activity, including traffic, sales, and user behavior.
Security and Trust
It helps implement security measures to safeguard the users and their assets and confirms the NFTs’ authenticity in the marketplace.
Support for Multiple Blockchains
It supports various blockchain protocols that are essential for the users as it facilitates asset management in multiple blockchains.
It enables users to access the marketplace and easily make the best use of its features.
These are the major must-have features you should include in your NFT marketplace. But for other platforms, you can add more parts or exclusive functionalities per their specifications.
NFT Marketplace Architecture and Tech Stack
Database: It stores details about NFTs, transactions, users, and other data. It can also include a NoSQL database, a relational database, or a combination of both.
API: An Application Programming Interface (API) permits the marketplace’s front-end and back-end to interact and exchange data. The API is also best for handling requests for data, such as NFT listings, transaction history, and user accounts.
Blockchain Node: A blockchain node software facilitates the marketplace to link to the blockchain and communicate with the smart contracts. It’s accountable for sending and receiving data from the blockchain, embracing transactions and contract calls.
Smart Contracts are self-executing contracts written in the code and run on the blockchain. Also, they are best for managing the development and transfer of NFTs and for handling other business logic for the NFT marketplace.
Wallet Integration: It’s generally used for NFT marketplaces, where users can easily handle digital assets and make transactions.
Authentication and Authorization: This layer ensures that only authorized users can access the marketplace and perform specific actions. It can include user login, role-based access control, and two-factor authentication.
Curation and Collections: This functionality helps curate and display collections of NFTs on the marketplace; artists, curators, or even the market can perform this better.
Techs and Third-party Services
Golang: The programming language companies usually consider for NFT marketplace back-end development.
LevelDB: It’s a database that’s picked for fast blockchain access.
Solidity: A programming language used for smart contracts.
AWS S3: It’s a cloud database with a wide range of storage classes for extra data volumes.
Ethereum: A blockchain widely used for NFT marketplaces that store the NFT identifiers and connect them to respective digital assets.
Infura.io: It’s a service that offers access to the Ethereum blockchain.
CoinMarketCap: A price-tracking service that’s best for the crypto market.
ETH Gas Station: It offers the details relevant to the cost of Ethereum transactions.
Techstack For NFt Marketplace Development
For your NFT marketplace solution development, you can use the below technologies.
Backend: Python, Node.js, Express.js.
Mobile Development: Kotlin, Swift, React Native.
Database: MySQL, MongoDB, PostgreSQL.
Cloud Storage: Amazon Web Services.
Smart Contracts: Solidity, Ganache, Drizzle, Brownie.
Non-fungible token standards
The driving force of an NFT, the standards ensure that the asset will perform in a certain way and display how to communicate with the asset’s basic functionalities.
Currently, two standards are typically used for developing an NFT:
This standard utilizes the mapping of exclusive identifiers to the locations that showcase the identifier’s owner. It provides a permission way to transfer the assets making the best use of the ‘TransferFrom’ method.
In this standard, the IDs that are used not only display one asset but a class of assets. As compared to the ERC721 standard, this is much more efficient.
For example, if you are a game developer and aim to sell 100 armor sets, you will have to write 100 smart contracts for ERC721. But for ERC1155, you must register one smart contract and showcase the quantity.
Non-fungible Token Metadata
In the NFT world, a concept known as owner arrives with a landscape that facilitates seeing the NFTs’ owners. For instance, on XYZ NFT’s smart contract, when you search for the owner of (290491), you can see its owner with the details that can be verified on the marketplaces, such as OpenSea.
But, a question may arise: how do such platforms get to know about the item and its unique attributes? Here arrives the metadata that provides descriptive details for specific token IDs, like descriptions, pictures, and additional traits.
Besides the terminologies, one more thing that all first-time entrepreneurs find challenging is understanding the legal documentation for developing the best NFT crypto platform.
For the best NFT marketplace development, the legal documentation includes the following:
- Company formation
- Community standards
- Terms of service
- IP consideration details
The above-mentioned points will help you understand your project categorization, execution, and documentation. You only need to hire the best NFT marketplace development services for accurate cost estimation, featurization, and post-development support.
NFT Marketplace Monetization Models
To earn and boost the revenue of your NFT marketplaces, you need to consider varied NFT business models along with the best monetization practices usually followed by the NFT platform owners.
Let’s check out the major monetization strategies that the NFT marketplace segments usually consider:
Traditionally, NFT marketplaces charge a small commission for every fungible token or acquisition whenever they are resold on the secondary market. Such a monetization model is becoming popular today also as it facilitates creators to earn constant revenue from their creations even post the initial sale.
This model allows creators to charge an amount to list their NFTs on the platform for sale. This is one of the widely used models as it helps the marketplaces to generate revenue without charging transaction fees or a percentage of the sale price. The creator pays a recurring or one-time fee for their NFTs’ listing on the marketplace based on the NFT type, the listing time, and other factors.
In this NFT monetization model, the marketplace boosts its revenue through varied sponsorship opportunities and advertising to brands and creators. This can include featured content, sponsored listings, and display ads. The brands and creators are looking to grab exposure and visibility for their NFTs and for the marketplaces looking to boost their revenue. Besides, they can showcase special banners on the NFT platform for marketing purposes and earn from them. This is one of the quickest ways to monetize monetization models.
It’s a marketplace monetization model that helps the marketplace generate revenue by charging an amount to allow creators to participate in auction-style sales or bidding NFTs. Besides, the marketplaces charge a percentage as a commission on the final sale price.
Creators looking to sell their NFTs at a higher amount and marketplaces looking to increase their revenue through commissions and auction fees may choose this monetization model.
5. Creator Incentives
Top platforms, namely KnownOrigin and Nifty Gateway, provide creator incentives, where creators get a percentage of NFTs’ sale price. This encourages creators to produce unique and new content for the platform constantly.
6. Creator Tokens
Platforms like OpenSea permit creators to mint their tokens to showcase ownership of a part of the creator’s work. Such tokens are usually preferred for receiving royalties from the sales of the creator’s work.
Steps To Develop An NFTs Marketplace
Step 1: Defining An NFT Marketplace’s Niche
An NFT marketplace development company analyzes the requirements of your target audience. It comprehends your competition to assist you in defining the right niche and potential competitive edges in the emerging NFT market. The top niches are video, gaming assets, artworks, sports memorabilia, music, land, and property.
Step 2: Launching The Blockchain Network
Holding the exclusive needs of your project, the development team selects the best blockchain framework and conducts the blockchain network implementation to build your NFT marketplace.
It’s not like the leading marketplace would be the best choice for your company. Like, nowadays Ethereum is the widespread choice for NFT marketplaces, but it’s unnecessary; it’ll go perfectly with your company. Small and mid-sized businesses may find the transaction fee of this marketplace too high.
It’s usually recommended that companies shouldn’t put forth their alternatives. Instead, they should assist their customers in picking an apt network per its economic feasibility.
Step 3: Creating Smart Contracts
The NFT development company designs and codes the smart contracts used to mint NFTs and start the purchase transactions automatically if the needed conditions are fulfilled. The company comprehensively tests the smart contract code before its development to ensure it doesn’t include any vulnerabilities that malicious actors can manipulate.
Step 4: The NFT Marketplace Implementation
The company builds a web-based marketplace with a user-friendly, sleek user interface where the buyers can obtain associated tokens and sellers can upload their digital assets.
Step 5: Setting Up Crypto Payment Gateways
An NFT marketplace development company integrates cryptocurrency payment gateways, which are available in the market (like CoinGate, and BitPay Coinbase Commerce), to allow marketplace users to purchase, sell, and transfer NFTs and pay for varied marketplace services.
Step 6: Establishing Security
Besides, the organization implements various robust cybersecurity mechanisms, like APIs’ authorization controls, asymmetric data encryption, and AI-powered fraud detection algorithms, ensuring its stores’ marketplace security and sensitive data protection. Additionally, we craft effective data backup protocols and create cybersecurity guides for platform users.
How Much Does It Cost To Develop the NFT Marketplace?
An NFT marketplace cost is determined per specific business requirements and the functionality you need to implement, like features you would like to add, the type of marketplace you want to develop, complex or simple, etc.
Besides, the use of the most secure, fast, reliable, and that’s why trending blockchain networks, like Avalanche, Solana, or Ethereum, will increase the price of an NFT marketplace solution.
The NFT marketplace development price starts at $50,000-60,000 and may go up for an MVP project.
What Are The Types Of NFT Marketplaces?
An NFT marketplace generally facilitates users to purchase and sell exclusive digital assets. Although every platform holds different details, digital assets can be anything, from the game- and sport-relevant collectibles to music and drawings.
Major NFT marketplaces that are popular these days are:
These platforms allow users to buy and sell NFTs without curation or restrictions. Typically, such marketplaces list a wide range of NFTs across varied genres and categories. For example, eBay for NFTs lists assorted NFT collections. These marketplaces easily magnetize many users as it doesn’t target specific user groups but attract people holding different interests.
Such platforms permit the selection of NFTs vetted by expert curators who ensure they only list top-quality NFTs for sale. Typically, such marketplaces target particular types of NFTs, like collectibles or digital arts.
Such platforms specialize in particular NFT types, like virtual real estate or gaming items. Generally, such marketplaces hold a minor part of NFTs and meet the needs of a specific audience.
These NFT marketplaces facilitate creators to mint and sell their NFTs. Typically these platforms aim to foster innovation and creativity.
These platforms, developed on blockchain technology, permit peer-to-peer trading with no central authority. Also, decentralized marketplaces are usually more widespread for their transparent and secure features than centralized ones.
These platforms merge the elements of various marketplaces like curated and open marketplaces or decentralized or centralized marketplaces.
Such marketplaces are popular because they aim at specific and rare assets and attract people holding specific tastes. NFT art marketplaces are the best example of niche marketplaces.
Why Do We Need NFT Marketplace – Advantages of NFT Marketplace
To match the steps of faster-pacing advanced technologies, opportunities, and trends in the market and boost their offering, tech enthusiasts, big brands, collectors, and investors are looking for ways to adopt NFTs. NFTs offer individual ownership rights, an online marketplace, and trading options to promote excessive liquidity. Above that, it assists in developing a robust relationship between users and brands.
Thus, owning a comprehensively functional NFT marketplace showcasing digitally crafted NFT assets has become import critical are some reasons that will state the need for an NFT marketplace.
- Blockchain technology supports NFT marketplaces; that’s why every transaction relevant to NFTs is displayed via a publicly distributed ledger. Ahead, numerous NFTs transactions can be accomplished instantly without any risk.
- Every NFT marketplace is decentralized, which means there’s no involvement of any 3rd-party in any activities that take place on this platform, like buying, trading, selling NFTs, and conducting transactions. Overall, a central authority is missing that can supervise such platforms. Anybody can access NFT assets easily as they are immediately available in NFT marketplaces. Every NFT is unique that’s listed on an NFT marketplace platform holding special digital identities and features.
- Creating an NFT marketplace also boosts user loyalty and motivates users worldwide to participate and trust the marketplace. As an NFT is a publicly accessible ownership record, it ensures exclusive ownership and authenticity.
How can Developerperhour Help to Develop the NFT Marketplace?
A trusted NFT marketplace development company, developerperhour holds the expertise, years of experience, and profound knowledge of building and managing decentralized solutions. Our team of professional NFT marketplace experts specializes in custom NFT marketplace development and helps you transform your ideas into a profitable marketplace.
Holding well-developed NFT business models and marketplaces, our team understands the tactics inside out. Also, we offer two cost-effective options:
- Developing a custom NFT marketplace or
- Building one based on OpenSea SDK.
Additionally, this marketplace can help you with NFTs development specifically for your brand to boost your revenue.
Whatever your business idea, connect with our NFT experts to catch up with a revenue-friendly product.
An NFT marketplace development demands careful consideration of the essential features and budget to ensure success. Investing in a top-quality and user-friendly NFT marketplace can benefit creators and collectors.
By targeting user experience and providing a wide range of valuable, exclusive NFTs, you can build a platform that stands uniquely in the expanding NFT market. Hire an NFT development company, let it know about your business needs, and bring a user-friendly and engaging NFT marketplace for the users.