We live in a world where we can literally find new technology every single day. When blockchain development was considered next-generation technology, it is now considered yesterday’s technology with the introduction of Metaverse and NFT development. People around the globe have always been interested in creating, buying and selling art. But there used to be a limit where people could actually visit the art exhibitions and buy and sell the artifacts in the real world. NFT and Metaverse have made it simple for us. Metaverse lets the people visit the exhibition virtually, whereas NFT Marketplace allows them to buy and sell them with digital currencies.
Why Do We Need The NFT Marketplace Solutions?
You might have questioned yourself what this all buzz about the NFT marketplace. What is it anyway, and why do we even need it? Just like any standard marketplace, NFT based marketplace also allows users to buy and sell products. The only thing that sets them apart is, it allows users to make transactions through digital currency and NFT tokens. Users can store, display, or show trading and create NFT tokens or any digital assets on an NFT based marketplace. Users can list any of their digital artifacts here, such as digital artwork, NFT game development, audio tracks, gaming VIP passes and many more. You can use NFT crypto or any digital currency that the marketplace allows for your NFT based transactions. If you think NFT still has a long way to go, it will take NFT to rule the world. Let’s see some of the facts that can help you see things more clearly. The worldwide revenue of NFT marketplaces was $338.04 million in the year 2020. Apart from that, in the segment of the NFT art marketplace, the Art blocks collection made the highest market capitalization of USD 828 million by February 2022. NFT art marketplace falls under the niche-specific NFT marketplace. Apart from that, various types of NFT marketplace platforms are available, providing different services.
Types of NFT Marketplace Platforms
There are two types of NFT Marketplace platforms primarily:
Niche-specific Peer-to-peer Marketplaces
This marketplace platform basically focuses on one niche, such as a platform selling tweets or digital holograms and so on. So this type of platform allows NFT transactions for those specific germs, and you can find every relative information for that niche on the platform.
Universal Marketplaces
This marketplace platform is open for all types of NFT based trading, just like Amazon.com. Users can list their digital artifacts no matter what they could be: a domain name, digital art, tweets, audiotrack, mems or photography. NFT marketplace type also affects the development cost. A universal marketplace demands various features compared to the niche-specific. Apart from that, there are various other things that you should consider before developing an NFT marketplace. Finally, there are some standards that any NFT developer should follow.
Things To Keep In Mind Before Building an NFT Marketplace
You might consider developing. NFT art marketplace considering all the hype and buzz about it. But it is not as easy as it seems. You should follow or take into consideration some standards before directly jumping to calculate the cost of NFT marketplace development.
NFT Standards
Two common NFT standards guarantee that the digital artifacts would be operating in a specific manner and showcase the ways of transection with the basic functionalities of the artifacts. ERC721: This standard is helpful to map the unique artifacts to the addresses representing the owner of the artifacts. It also allows users to transfer the assets to the other user through the “transferFrom” method. ERC1155: This standard does not just represent a single asset but the whole class of assets. The ERC1155 standard is more efficient and reliable than the ERC721 standard.
NFT Metadata
NFT Metadata is the concept to find the owner of the NFT assets. You can search for the owner of the specific NFT assets. To better understand, let’s see an example. Let’s assume you are looking for the owner of the 310320. You can find the owner of the token through smart contracts, but what about the other details, such as what that NFT is referring to? What are the unique features of the NFT assets? That’s where the NFT Metadata plays its role. Through NFT Metadata, you can see the defining information about the token, owner of the assets, pictures of the NFT assets and so on.
Required Legal Documentation to Develop NFT Marketplace
Apart from the standards and vocabulary, there is one of the most important things that you should know before moving forward.
- Legal Documentation
- Formation of Organization
- Terms of Service
- Community Standards
- Privacy Policy
- Details of IP Consideration
Understanding the basic terminologies and having all the legal documentation verified, you should start moving ahead with the NFT marketplace formation process.
Steps to Follow for NFT Marketplace Development
Specifying the Niche
The first and foremost step is to specify your niche. The success or failure of your NFT Marketplace depends on this very step. You can do research on the current market trends before finalizing the niche. Basically, there are two types of market:
- Vertical Market
- Horizontal Market
The vertical market works for the sole purpose where the sellers with the specific assets sell the assets to the specific audience to satisfy buyers’ requirements. Whereas in the horizontal market, users can list any kind of products and services without targeting any specific audience group. As you can see, the horizontal market targets various services and products; it demands major investment and efforts.
Selection of Role
Three types of roles exist in any NFT based marketplace.
- Buyers: It refers to the group of people who are interested in buying digital assets and artifacts. Basically, the customers.
- Creators: It refers to the specific group of people who have created or designed the digital assets and registered them as NFT under their name.
- Admin: Admins manage the entire NFT marketplace. They are responsible for error-free, hassle-free NFT transactions from buyers to sellers, whether it contains the ownership transfer or the digital currency.
Documentation of The Project
The following stage is to make definite documentation of the whole NFT project, which is unavoidable at any rate. It might demand a lot of effort and time from your end, but legitimate documentation is useful to save a lot of unrequired investment while developing an NFT art marketplace.
Designing
NFT marketplace is not a unique concept, but you can make it unique and efficient with marketplace design. You can aim to deliver an exceptional user experience with the functional product and services. UI and UX play an important role over here. You can leverage the most compelling design trends and techniques that can enhance the look and feel of the marketplace. It can help you to attract more potential users.
Development
The most important phase of the entire process is the NFT marketplace development phase. This is the time when you decide which framework the NFT developer should choose, what features and functionalities it should have and so on. The development phase is the one where the developers should think about each and every factor, such as optimum execution, functionality, dependability, efficiency, and process.
QA Testing
Any development process never ends just with the development; it also includes the QA testing phase. NFT marketplace developers test each and every feature and functionality in this stage to find and fix the errors and bugs before delivering the final product. This is an important step to verify the optimum quality of the NFT marketplace.
Deployment
Last but not the least stage of the NFT marketplace development process is where the NFT developers test the platform for actual usage. After the successful deployment of the platform, it is all ready to launch and serve its purpose.
Must-have Features of NFT Marketplace
You can do the research and add unique features to your NFT marketplace, but there are some features that you should have in your NFT platform.
Storefront
This space should display all the relative information about the digital assets, such as digital asset type, owner, treads, price history, bid price and so on.
Live Auction Feature
The live auction feature can attract potential buyers for digital assets. The live auction feature should have basic details about the artifacts such as name and token address, numbers of the bidders, submitted quotations and so on.
Search Option
The users should be able to find the specific digital assets through the token number or the class or even for the tags and so on. It helps users to quickly search the listed digital artifacts on your platform.
Listing Feature
This feature is important for the seller. It should allow the seller to add all the required information about the asset. The admins should verify all the listed information before approving and listing it on the NFT marketplace platform.
Trending NFT Assets
This should list the trending assets that one possibly can miss on the feed. This should include the NFT assets that might interest the users more or give high sale prices. This should also include the basic information about the asset, such as NFT token number, owner’s name, average price and so on. Basically, it should list the information that can interest the visitor to know more about the digital assets.
Auction & Buying Feature
Any NFT marketplace should have this feature. It allows the buyers to know all the details about the assets, such as bid amount, expiry date, and buying feature.
Digital Wallet Integration
It allows the users to buy and sell the NFTs easily. You can integrate the different digital wallets into your platform, which will smoothen out the NFT transfer process and will facilitate the users to transfer different digital currencies to the seller for the NFT.
Allowing Various Payment Methods
There is not just one digital currency that exists, so integrating various payment methods can boost the user experience. You should allow users to use their crypto wallets, payment wallets, debit or credit cards or wire transfer as well.
Push Notification
In-app push notification is more just an annoying tool. It plays an important role in marketing and even for security purposes as well. For example, you can send the push notification for the trending NFTs, upcoming auctions, the bid price for the listed asset or the newly listed artifacts that the user might be interested in and so on.
Customer Support
The customer support feature can help you enhance the users’ trust in your platform. You can even get more clients by providing efficient customer support.
How Much Does NFT Marketplace Development Cost?
Once you finalize the features you want in your NFT marketplace, the next thing is you should figure out how much it can cost you. Without proper documentation, no one can give you the exact development costing figure, including the features and functionalities you want for your platform. It includes various things such as features you want, customization of your platform demands, framework and technology stack, development time, developer’s cost, required third-party tools integration and so on. But to give you a brief, here is the estimated cost of NFT marketplace development. The costing may vary based on your demands, so it’s best advisable to reach out to the NFT Marketplace development company to get the exact development cost.
| Features & Functionalities | Estimated Hours | Estimated Cost |
|---|---|---|
| UX/UI Development | 42 Hours | $2395 – $5040 |
| Authorization and Security | 72 Hours | $3285 – $8640 |
| User Profiles | 42 Hours | $2385 – $5040 |
| Home Page | 84 Hours | $3645 – $10,080 |
| Search and Filters | 96 Hours | $4005 – $11,520 |
| Product Page | 42 Hours | $2385 – $5040 |
| Reviews & Ratings | 48 Hours | $2565 – $5760 |
| Shopping Cart | 48 Hours | $2565 – $5760 |
| Payments | 42 Hours | $2385 – $5040 |
| Notifications | 32 Hours | $2085 – $3840 |
| Ethereum Incorporation | 96 Hours | $4005 – $11,520 |
| NFT management | 96 Hours | $4005 – $11,520 |
| Inventory Management | 42 Hours | $2385 – $5040 |
| Buyer Panel | 64 Hours | $3045 – $7680 |
| Author Panel | 132 Hours | $5085 – $15,840 |
| Admin Panel | 85 Hours | $3775 – $10,200 |
| Total | 1063 Hours | $50,000 – $116,040 |
Conclusion
The NFT Marketplace development is still on the rise. You can have your own customized NFT Marketplace where users can transfer their NFT and hold the auction as well. Be ahead of the competition and reach out to an efficient NFT Marketplace development company that you can trust and understand your requirements the best.