How to Build an NFT Marketplace: A Comprehensive and Step-by Step-Guide
NFT is a unique digital item to have demonstrable ownership. Usually, it is used for digital art. Ethereum-powered projects like SuperRare are harnessing the power of blockchain to create digital art that has digital scarcity and true ownership, thus creating a whole new market for artists and collectors in the digital space.
Built on NEAR, Paras: Digital Art Card is an NFT marketplace that is already available for use. It offers much cheaper NFT mining fees than are possible on Ethereum, allowing artists to create without being limited by high on-chain fees.
In this article, we are going to discuss NFTs, the ways of creating, selling, and buying. And will give you a step-by-step guide on how to develop an NFT marketplace from scratch with a detailed estimate.
What is NFT?
Non-fungible tokens, or NFTs, are pieces of digital content associated with the blockchain, the digital database underlying cryptocurrencies such as Bitcoin and Ethereum. Unlike NFT, these assets are fungible, that is, they can be replaced or exchanged for another identical one of the same value as a dollar bill. On the other hand, NFTs are unique and not interchangeable, which means that no two NFTs are alike.
How to buy NFTs
There are plenty of marketplaces that make it possible to buy NFTs. I.e., Nifty Gateway, MakersPlace, OpenSea, Decentraland, etc. There are also niche ones for more specific types of NFTs, such as NBA Top Shot for basketball videos, or Valuables for auctioned tweets, such as Dorsey’s, which are currently up for auction.
But be careful with fees. Some marketplaces charge a fee for ‘gas’, which is the energy required to complete a transaction on the blockchain. Other fees may include the cost of converting dollars to Ethereum (the currency most commonly used to buy NFTs) and closing costs.
How to sell NFTs
The process of NFTs selling varies from one marketplace to another. In general, you should upload your content on the platform, then follow the instructions to turn it in the NFT. You will have the opportunity to write the description and set the desired price. Commonly, NFTs are being sold using ethereum. But there are other options. I.e., WAX or Flow.
Also, you need to remember that some of the websites charge a fee. Thus, you should read the terms carefully.
How to make an NFT?
Everyone can create an NFT. The only thing you need is a cryptocurrency wallet, a small purchase of ethereum, and a connection to an NFT marketplace where you’ll be able to upload and turn the content into an NFT or crypto art.
Why should you invest in NFT marketplace development today?
The market capitalization of NFT is growing rapidly, increasing almost tenfold between 2018 and 2020. The source of these numbers claims that achieving market capitalization for such a young market is a ‘difficult exercise’ and even mentions that this particular estimate is ‘conservative’. The volatility of events in this new market can also be seen in the volume of NFT transactions for different segments, as well as in the size of the NFT market in the same segments: transactions decreased for games, while value increased for art. The latter aspect was showcased in early 2021, when an NFT digital artwork was auctioned for approximately $ 69 million, making it the third-highest value artwork ever sold by a living artist.
It seems like 2020 was a good year for NFTs, but from what point of view? Finance, adoption, number of users? Let’s discuss it in detail. So, the number of active wallets increased from 112,731 in 2019 to 222,179 in 2020 (+97,09%). The number of buyers increased from 44,644 to 74,529 and the number of sellers increased from 25,264 to 31,504. At the same time, total volume traded in NFT grew $62,862,687 to $250,846,205 (+299%).
The number of active Smart Contracts is another indicator by which to assess the overall health
of the NFT Industry. We have gone from around 200 active Smart Contacts in the middle of 2019 to almost 500 a year later. Indicating the amount of really active projects almost doubled between 2019 and 2020, a sign of very strong growth and development in the Ecosystem.
Besides, we also note that the average NFT transaction volume per week is extremely low compared to the total transaction volume on the Ethereum blockchain; 120,000 NFT TX for over 5,000,000 transactions per week.
NFT transaction volume in 2020 has dropped significantly compared to previous years. This relative decline is attributed to the rise of side chains that allow publishers of projects and crypto games to offer their players a large number of off-chain interactions without high costs and delays and interact with the main chain only for key transactions such as assets trading from the user’s wallet.
Read more: https://code-care.com/blog/how-to-build-an-nft-marketplace/
