It’s high time for NFTs. They are on the verge of being ubiquitous. The sales of NFTs crossed $2.4B in the first 6 months of 2021. That’s not all. The trading volume of NFTs has been soaring across the internet. A popular NFT marketplace — OpenSea reported an 800% increase in trading volume.
With more people joining the club every day, these numbers are bound to increase over time. This means, if you’re seeking to create your own NFT marketplace, there couldn’t be any better time than now. In this blog, we will share everything you need to know to start your own marketplace.
What is a non-fungible token (NFT)?
A non-fungible token (NFT) is like a digital asset representing art, music, videos, game items, etc. They can be traded via cryptocurrency and are built with the same software as other cryptos. What makes an NFT stand out is its uniqueness. Each NFT is unique and irreplaceable. However, you can still trade/sell them on various NFT marketplaces.
Here are a few properties of NFTs:
- They are indivisible. You cannot divide an NFT or sell a part of it.
- While it is possible to view an image or artwork for free, there can be only one individual owner at any given point in time. The ownership of any NFT can be easily verified and there’s no way anyone can modify/copy/paste ownership records.
- NFTs can be scarce as they are launched in limited quantities and cannot be owned by multiple users simultaneously.
Now that you have a brief idea about NFTs, let’s understand more about their marketplaces and how they work.
How does an NFT Marketplace work?
NFT marketplaces work similarly to any other marketplace. Creators can upload their art on the blockchain, and collectors can view and trade it via cryptocurrency. You can create a marketplace for a very specific niche or for multiple industries catering to diversified audiences.
As far as the revenue goes, most marketplaces collect a commission from all the trades happening there. However, there are many other ways you can generate revenue via a marketplace. For instance, you can levy a subscription fee to sellers/creators or have a fixed cost for registering. You can also consider allocating space for ads either to sellers or advertisers.
Now that we have a brief idea about how marketplaces work and how you can generate revenue from it, let’s look through essential features every NFT marketplace must-have.
Necessary Features of an NFT Marketplace Website
While this goes without saying, there couldn’t be a marketplace without a storefront. That’s where you can display the products, categories, and feature popular creators on the marketplace.
You should prioritize the information to be displayed on the storefront as it is one of the most important aspects of your NFT marketplace. It should be easy to navigate, intuitive, and must deliver a consistent user experience.
2. Advanced Search & Seamless Navigation
Search and navigation are critical components of your marketplace. You must ensure your marketplace is easy to navigate and the users can find what they are looking for in no more than 4-5 clicks.
To simplify navigation, you can consider adding a mega-menu with explicitly defined categories, sub-categories, and products. For search, you can consider adding advanced filters that allow users to search via product attributes.
3. Seller Profiles/Store
Creating a seller profile will greatly improve the overall shopping experience. Buyers who are looking to buy NFTs only from a specific seller can do so via visiting their profiles. And on the other hand, sellers also get to display their best work in an organized manner.
You can add the seller’s selling history, total NFTs, customer feedback to their profile page. This will also help buyers decide whether to trust a seller or not. For instance, if a seller has less than three stars from five, a buyer will be cautious while dealing with them.
4. Creating Listings
Creating NFT listings will be another basic feature every marketplace should have. This is where sellers can upload their work and list them for auction/sale. They can add descriptions, images, and other relevant details that are necessary.
NFT creators may or may not be tech-savvy. Thus, it is important to keep things as simple as possible here. You don’t want to confuse them with too many options. Keep what’s required and verify the information on each listing before it goes live.
5. Buying & Bidding
While some creators sell their artwork at a fixed price, others prefer to put their work at auction. So it is important that your marketplace offers both options to creators. Auctions should have an expiry date while other listings get automatically removed once the art is sold.
As far as the bidding goes, you must ensure the process is swift and smooth. The information about the latest bid should be updated in real-time so there are no conflicts whatsoever. Having a seamless buying cycle will ensure a good shopping experience for buyers.
Both the parties, buyers and sellers must have their wallets on the marketplace. They can store, send, and receive cryptocurrencies in exchange for NFTs. Buyers can load crypto to their wallets and sellers can cash it out once received.
There are several wallet systems available in the market. Make sure the one you choose is safe and reliable. The last thing you want is failed transactions and unhappy users. If you can, test different wallet systems before fixating to one.
Apart from the above-mentioned ones, there are several other features an NFT marketplace should have. For instance, the ability to rate a trade post-completion, verify an NFT, and many more. While creating your own marketplace, think of the features that will be usable to your audience. A feature-rich marketplace is bound to thrive even amidst today’s rapidly disrupting economy.
If you’re seeking to develop your own NFT marketplace but don’t know where to start, let us help. We can help you create a high-performing marketplace that consistently delivers a good user experience. Give us a shout, and let our trained professionals help.
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