Before we dive into understanding NFT marketplaces, it is important to know what NFTs are. In simple terms, a non-fungible token (NFT) is a digital asset powered by blockchain technology. From a tweet to artwork or sports memorabilia, anything can be an NFT. Most importantly, NFTs cannot be traded as normal cryptocurrencies – that’s why NFTs are exclusive. 

Now that you have an idea of what NFTs are, you must be wondering what NFT marketplaces are. As its name suggests, an NFT marketplace is a platform built on a blockchain network where you can buy and sell non-tradable tokens. The fact that the NFT market is poised to become a US$ 211.72 billion sector by 2030 speaks about this digital asset’s incredible popularity.

Many companies, from startups to established enterprises, are stepping into the NFT marketplace development. If you are also interested in building an NFT marketplace for your business, we have got you covered with this guide. Here, we will discuss the following:

a)       NFT application areas

b)      NFT marketplace architecture

c)       NFT marketplace features

NFT Application Areas

Real Estate

A parcel of land is unique. So, it stands to reason that the property can be converted into an NFT, which can then be sold to a digital real estate collector. Moreover, if you convert an NFT into a piece of land, you will make sure its ownership is easily traceable. Best of all, legal terms that bind a real estate deal can be coded into smart contracts that would streamline digital transactions.

Artwork

True art collectors need a sense of ownership, and an NFT can give that to them. NFT creators can own a piece of art that they want to sell to aficionados. Moreover, digital artists can use NFTs to connect with buyers directly, eliminating intermediaries.

Gaming

In-game assets – avatars, characters, virtual lands, weapons, etc. – can be turned into NFTs. Most gaming metaverses are already transforming game assets into NFTs to give their gamers and their business models a solid competitive edge. Moreover, gamers can trade NFTs that they may not use anymore.

Ticketing

Confirming ticket authenticity was a big challenge until NFTs entered the picture. From combating speculative ticketing to stopping ticket reselling, NFTs can transform the ticketing sector inside out. Not just that, but ticketing systems following the NFT principles can confirm a ticket’s ownership.

NFT Marketplace Architecture

When you partner with an NFT marketplace development partner, you will get a robust architecture that would have a well-defined frontend system and backend; also, an NFT marketplace would even use different technologies and services as well.

Architectural Components

1)      An NFT marketplace is a web application where users can buy and sell non-fungible digital assets. In general, this marketplace would include a server-side system and a client-side one.

2)      A digital wallet would be required as an online service to help users store their digital funds.

3)      You would need NFT metadata – a description of different digital assets traded as NFTs; the metadata of an NFT would include its ownership detail, creation date, name, and other attributes.

4)      You would need a database storage system that would work well with distributed networks or blockchains. One such database storage system is Interplanetary File System or IPFS. These dedicated systems are focused on storing the metadata of every digital asset (NFT) on the blockchain without consuming a lot of power.

5)      When your NFT marketplace has smart contracts, it would easily assign a unique identifier to every NFT. Generally, every NFT marketplace should come with smart contracts built using the ERC-721 standard. The tokens created on this standard are non-fungible.

6)      The project will also need a blockchain – Ethereum, for example – as a decentralized database that would store data on NFT transactions.

Allied Services

1)      Using Golang to create the backend of an NFT marketplace

2)      Programming smart contracts with the help of Solidity

3)      Ensuring faster blockchain accessibility with a special database – LevelDB

4)      Accessing a variety of storage classes with multiple data volumes using a cloud-enabled database – AWS S3

5)      Providing fast-paced entry to the Ethereum blockchain with specialized services, such as Infura.io (Ethereum is a popular blockchain that helps in storing the identifiers for different NFT assets)

6)      Getting a wealth of information about the cost of transactions with ETH Gas Station

7)      Tracking the price of tradable crypto assets with the help of the CoinMarketCap API

Top NFT Marketplace Features

Here is a list of the most common features that every good NFT marketplace should have. Besides, you are free to add different features to your NFT marketplace, depending on how much you would like to enhance its functionality.

Storefront

NFT marketplaces are similar to e-commerce websites. That means an NFT marketplace will also require an intuitive and attractive storefront. The marketplace’s admin must decide the level of information that needs to be displayed for every file. Just like physical art, NFT buyers would want to understand the authenticity and origins of files. All this will be taken care of by the marketplace’s digital storefront.

Filters

You may have a lot of NFTs listed on your marketplace. But you cannot – and should not – expect your buyers to just find out NFTs without any filtering functionality. When you add a filtering functionality to your NFT marketplace, you will reduce the time your buyers spend on finding any specific asset they want. The filtering functionality must help collectors/buyers sort items by price, artists, rarity, etc. That means adding a filter in the NFT marketplace would enhance the buying experience.

Search

While you are developing your NFT marketplace, you should figure out every NFT file’s scope that would be traded. OpenSea is the most commonly used marketplace for managing any form of NFTs. However, you now have newer marketplaces that zero in on specific niches too. So, whatever kind of NFTs you plan on listing on a marketplace, you would need a marketplace that provides search functionality. No doubt, the search function would streamline the buying process.

Listings

The fact is, every NFT marketplace must offer a positive trading experience to both sellers and buyers. Whenever someone needs to list a non-fungible token, they must be able to do that seamlessly. That is why businesses with zero experience in developing web marketplaces should invest in NFT development services. A marketplace built by experts will offer clear instructions on uploading NFTs. 

Listing Status

Every party in an NFT transaction needs to access process-related details. For sellers, a marketplace can list the data about the number of people viewing their files and bidding during auctions. Similarly, an NFT buyer would like to know whether a file has gone through proper authentication before being listed. 

Auctioning And Buying

When you build an NFT marketplace, you want it to have several features. That is why hiring an NFT developer makes so much sense; a team of NFT developers can bring different selling mechanisms to the marketplace. This way, the NFT buying experience is improved by a wide margin. Like selling, even the auctioning process must be simple for most NFT sellers. Many artists get the best prices for their NFTs only because they performed well-timed auctions. So, a good NFT marketplace must even help sellers perform auctions on time.

Wallet

Every tech-savvy crypto trader will have wallets. Traders with their crypto wallets prioritize the security of their assets. To respect the consumers’ needs for storing crypto assets securely, an NFT marketplace should let them work with their existing crypto wallet solutions.

Ratings

Every NFT marketplace should rate NFT artists and buyers. That way, a marketplace would help set the authenticity of an NFT buyer as well as a seller and prevent anyone from getting short-changed. Most NFT development companies make sure marketplaces come with a strong and unbiased rating mechanism backed by smart contracts.

Building a feature-rich NFT marketplace is no easy task if someone does not have a strong technical skill set. So, it is essential for businesses with fewer technical capabilities to look for a trusted NFT development company – a partner with deep expertise in NFT marketplace development.

Flexsin: An NFT Marketplace Development Partner

At Flexsin, we have a team of developers with expertise in building a robust NFT marketplace. From NFT marketplace maintenance to NFT marketplace development, we offer end-to-end solutions for every stage of the project life cycle. We have the capability of building your next NFT marketplace on different blockchain platforms – Hyperledger, MultiChain, Ethereum, EOS, TRON, AWS BaaS, etc. Connect with our developers today and make your vision of an NFT marketplace a reality.