NFT Marketplace: Everything you need to know about

As the Fintech industry advances, it has led us into double expansion – first Cryptocurrency market and second in the world of “NFTs”. The NFT marketplace is already a multi-million-dollar industry. NFT transactions have reached an absolute high of $ 250 million, an increase of 299%. This resulted in a 97% increase in the total number of active wallets and transaction volume. This high momentum is benefiting not only the creators or owners but also the marketplaces on which they are being hosted.  

As we all are well aware of what NFTs are and what their properties are, let’s dive into the details of the NFT marketplace.  

What is an NFT Marketplace?  

NFT Marketplace is a decentralized platform allowing users to create, buy, sell, and store NFTs. A marketplace is an online platform where creators sell their non-fungible virtual products and the buyers procure them by using cryptocurrencies like Bitcoin or Ether. The crypto marketplace charges a transaction amount every time an NFT is purchased off its platform. After the NFT is bought, the buyer gets a token which is a unique identifier that contains proof of ownership and information about provenance, author, and authenticity. 

Why do you need NFT Marketplace?  

It is good to see that blockchain technology and NFTs can offer the perfect opportunity for artists and content creators to get paid fairly for their work. As in now, artists will not have to depend anymore on auction houses or galleries to sell their work, now they can form an NFT and sell it. This also helps artists to get a better share of profits.  

Nonfungible token standards 

Standards are basically a driving force of an NFT. They guarantee that the asset will behave a certain way and demonstrate how to use its core functionalities.  

Currently, there are two basic standards in function for NFTs 

• ERC721 
• ERC1155 

How does Marketplace work? 

• Crypto wallet – In order to use an NFT Marketplace, a user first needs to sign up for a digital wallet. Crypto wallets are used by both buyers and sellers, where they all get information regarding a particular NFT. They can also choose which payment tokens they want to deal with. These NFT platforms allow users to post their work and display it everywhere.  
• The next step is to list the product for sale. These NFT platforms allow users to post their work and display it everywhere. 
• After this, the product is put up for auction or sold for a set price. Smart contract transactions need to be set up while listing an item.
• These NFT platforms allow users to post their work and display it everywhere. 

Basic Features of NFT Marketplace 

1. Storefront:  Any NFT Marketplace must have a storefront that offers users all the information required forbids, including owners, preview, and price history. Artists cannot copy a particular NFT, they can release multiple NFTs of the same image. Marketplaces generally give different numbers to differentiate the work. 
2. Filters: Users can easily navigate a site for their preferred collectibles with filters. Also, there are other features such as different payment methods, listing statuses, and categories. 
3. Listings: Listings on the Marketplace allows users to send relevant categorical collectibles quickly. These listings usually have a sorted description and an even better ‘tag’ system for users to scan through.
4. Wallet:  One of the major concerns for people dealing with NFTs (both buying and selling) is the security of funds. Hence, in a blockchain world, a secure platform is the need of the hour. Any ideal marketplace needs to be connected with a “crypto” wallet instead of forcing the buyers to sign up with different online wallets. Usually, the technology applied to create these marketplaces are -Ethereum, Flow, Tezos, and Cardano. 

How can we help you build one? 

If you’re looking to build an NFT Marketplace, we can help you build one. We can take care of everything from setting up tools for you to working through smart contracts.  

Once the project’s scope is clear, we can develop a user-friendly front end that works for buyers and artists. For more information, contact our experts here. 

Shivani Mehta 4 Mar 2022

TABLE OF CONTENT

What is an NFT Marketplace?  

How does Marketplace work? 

Basic Features of NFT Marketplace