NFTs or Non Fungible Tokens as they are commonly called are taking the world by storm. We are only 4 months into this year and the NFTs market cap has already been increased by 1,785%. This high growth momentum the technology has found itself into is not just benefiting the NFT owners and creators but also the marketplaces they are being hosted on.
Marketplaces like OpenSea, Rarible, Superfarm, etc. have become the epicenter of funding and high revenue – A sign that every business model that NFT is touching is turning into gold. But what makes the NFT marketplace the epicenter is the fact that it hosts multiple NFTs – meaning the source of revenue that it opens is much greater than direct NFT creation and selling.
While the pieces around NFT development and the cost it incurs are weeding across the internet, we are going to dive a bit deeper. In this article, we are going to look into the cost of NFT marketplace development and what blockchain enthusiast entrepreneurs need to know when they enter the space and develop NFT marketplace.
Table of Content
- What Is an NFT Marketplace?
- What to Know Before You Set Off Your Plans to Build an NFT Marketplace?
- How Does an NFT Marketplace Works?
- The Must-have Features for NFT Marketplace Development
- How Can Appinventiv Help You Build an NFT Marketplace?
What is an NFT Marketplace?
The important element of knowing how to create NFT marketplace is to know what it is. An NFT marketplace is an online marketplace where creators sell their non-fungible virtual products and the buyers procure them by using cryptocurrencies like Bitcoin or Ether. The marketplace charge a transaction amount every time an NFT is purchased off their platform.
After the NFT is purchased, the buyer gets a token which is a unique identifier that contains proof of ownership and information about provenance, author, and authenticity.
In case you are looking for a primer on NFT, head on to our article – What is NFT And How Does It Works – A Detailed Guide.
The top NFT marketplaces
Now that we have established how expansive the NFT marketplace is becoming, there are some things that every NFT marketplace development company wants you to know before you get on the track of development.
What to Know Before You Set Off Your Plans to Build an NFT Marketplace?
Non-fungible token standards
Standards are the driving force of an NFT. They guarantee that the asset will act in a specific way and showcases how to interact with the asset’s basic functionalities.
At present, there are two standards that are commonly used for creating an NFT:
- ERC721: The standard uses mapping of unique identifiers to the addresses that represent the owner of the identifier. It offers a permissioned way of transferring the assets using the ‘transferFrom’ method.
- ERC1155: Under this standard, the IDs do not just represent one asset but a class of assets. Compared to the ERC721 standard, this is a lot more efficient. Here’s how. Suppose a user wishes to transfer 100 armors, the blockchain developers, in the backend, will have to modify the smart contract state for 100 unique tokens. ERC1155 enables developers to call only transferFrom with 100 quantities.
Non-fungible token metadata
In the NFT space, there is a concept called ownerOf. It offers a way to look up the owner of an NFT. For example, when you search for ownerOf(290491) on ABC NFT’s smart contract, you can see the owner of the token 290491 is XYZ – this information can then be verified on marketplaces like OpenSea.
But how do OpenSea like platforms understand what is item 290491 and what are its unique attributes? This is where the metadata comes into play. Metadata offers descriptive information for specific token ID such as pictures, descriptions, or any additional traits.
Besides the nomenclatures, there is one thing that every first-time entrepreneur struggles with – knowing the legal…