In 2021, the NFT market value was worth $41 billion. The craze for NFT is skyrocketing every year. Marketplaces like OpenSea, Axie, CryptoPunks, etc., are gaining popularity and fortune. Without any hesitation, more players are planning to risk everything just to build an NFT marketplace.
The opportunities the NFT marketplace provides are limitless. You can buy and sell digital assets, also known as non-fungible tokens (NFT), online through the NFT marketplace. Be it game items or avatars or digital art or domain names or music, event tickets, anything that is digitally represented. And these are primarily based on Ethereum blockchain technology, one of the best platforms to develop an NFT marketplace.
And if you are planning to jump into the NFT marketplace, stay with us till the end. We will explain what an NFT marketplace is, why to build it, how to develop it, and how much it will cost to make an NFT marketplace.
NFT marketplace overview
As stated earlier, an NFT marketplace is a platform for NFTs owners plus those who want to buy them. It is a place to store, create, and trade those tokens.
Amazingly, no one can reproduce or copy NFTs.
NFTs owners from all over the world store their tokens and display them to trade them. And they can only buy or sell them using NFT cryptocurrency and only on the NFT marketplace.
The craze of the NFT marketplace is all over the place, and currently, OpenSea is the largest platform for NFTs, where each month, 250,000 customers trade them. 2014 was the year when it first appeared. And today, the NFT marketplace is worth more than $40 billion, increasing by 200 times than in previous years. And Asia is the largest region for the NFT marketplace.
Every day, thousands of NFT sales occur in the NFT marketplace.
Why build an NFT marketplace?
The highest NFT sold to date is worth $91.8 million. An NFT meme was sold for $4 million. In 2021, the NFT art sales surpassed $1.5 million in a single month. This astonishing number is increasing year by year. People are more interested in the NFT marketplace than ever. So why not grab this opportunity and build one?
Looking at the above number, the NFT marketplace is going to be much bigger in 2022 and beyond.
Aside from these numbers, by developing an NFT marketplace, you are providing a platform for NFT owners and buyers. Plus, you are giving opportunities to others who want to create and trade them. And in return, you generate income by charging transaction fees. In such a marketplace, thousands of NFT sales occur, which is a strong reason to build one.
The NFT marketplace, a common platform for buyers and sellers, has made it more convenient and easy for them. Not to mention, it has provided the perfect and right opportunity to generate income.
Plus, the NFT marketplace is the only medium for trading non-fungible tokens. And people don't have many options. So it is only becoming bigger and bigger. That is why investing in it is the right decision.
How does the NFT marketplace work?
Like any other platform, the NFT marketplace is a simple app for buyers and sellers. It is similar to any E-commerce app, but in the NFT marketplace, you trade non-fungible tokens.
First, the user needs to register in the app and create a digital wallet account, which is the only way to store and trade NFTs and cryptocurrencies.
Then, the user can either create their token or buy from the listings in the app.
While listing the NFTs, you need to include the name, price, image/video, and description. You can either set a fixed price or auction the NFTs.
Once the NFTs get approved, they are listed in the marketplace.
The top bidder gets the NFT.
At last, the NFT marketplace handles all the sales-related transactions through a digital wallet. It charges some transaction fees and sends money to the sellers.
However, a special contract is made by the NFT marketplace called the smart contract to ensure the safety of owners' rights to the NFTs.
NFT and Ethereum blockchain
NFT and Ethereum are closely related to each other since. Without blockchain technology, the NFTs don't exist. Ethereum is the main reason for the rise of NFTs.
NFTs have only one owner, and the NFT marketplace is the place where they are moderated and verified. And all the information related to NFTs is recorded on the blockchain, mostly on Ethereum.
Each NFT has a unique identifier that is linked to the Ethereum address, which is easier to remember, XXXX.eth, for example.
Here is a simple overview of the Ethereum blockchain.
- NFTs are confirmed as an asset on the Ethereum blockchain.
- Ownership, transaction, and NFTs history are recorded in the Ethereum blockchain.
- The ownership cannot be stolen.
- Trading occurs within the Ethereum NFT marketplace.
Benefits of developing the NFT marketplace on Ethereum.
Safe and accessible The NFTs on Ethereum blockchain can be accessed at any time from anywhere. Since the Ethereum never goes down, the customers can see your tokens on listings and buy them whenever they want.
Bigger network size Ethereum is a popular and trusted network with hundreds of nodes and millions of users, making it one of the biggest networks globally.
Competitive advantage When comparing Ethereum with the competitors, the latter has fewer nodes and a limited user functioning capability. This is why developing the NFT marketplace on Ethereum gives you an edge over your competitors.
Faster development Business owners can develop an Ethereum NFT marketplace faster since there are various solutions available in the market. They can quickly deploy it, mine, and store NFTs and crypto.
Data security Ethereum blockchain is one of the safest platforms, keeping everything from ownership to transaction history secure. No one can steal or manipulate the information related to the NFT. The data is kept in encrypted form. Only after the verification of the NFT, the trade can take place.
How to develop an NFT marketplace on Ethereum?
Developing an NFT marketplace is never a simple task. You need the help of experts who have years of experience because they know what approach to take and how to make a project successful.
To develop an NFT marketplace, you need to follow a process, which is explained below.
Define your niche The first step to launching the NFT marketplace is to define your niche. NFT marketplace is very competitive and with various non-fungible token categories, like gaming, event tickets, music, video, digital art, domain names, sports, etc. The opportunity is endless, and so is the competition. So you can either choose one or multiple niches, or go for the general audience.
Select a vendor Now, it is time to select a reliable vendor who will help transform the project idea into an executable plan. Seeking help from an expert increases the chances of a project's success. Pick a software company or developer that knows about blockchain technology, crypto, and NFTs.
UI/UX design Having an engaging and informative user interface is key to project success. People have long forgotten the simple black and white UI and have moved to intuitive, responsive, and mobile-friendly design. The interface should include all the critical information, NFTs listings, profiles, search and filters, etc., to provide an excellent and seamless user experience. It should be simple yet interactive, navigable, and interesting.
Select a wallet Trading NFTs only takes place through digital wallets, mainly crypto. You can either integrate an already existing wallet or develop your own custom wallet.
Front-end development Now, comes the coding part, where you work on the front-end section. In this phase, you work on the look and feel of the NFT marketplace by executing the UI design. You mainly focus on functionality, user interface, and usability to provide an excellent experience to the users.
Back-end development and smart contract In this phase, you focus on the server part and the system's logic. Primarily, you work on smart contracts, auction mechanisms, etc.
Smart contracts are computer programs and are like digital agreements with statements, terms, and conditions that run automatically when sales conditions are met.
Test In this phase, you test the system to ensure its performance and functionalities are in top-notch condition. You prevent the risk of failure and make the NFT marketplace more secure and free of bugs and errors.
Testing is done to ensure there are no faults in the system, and it is running perfectly before its launch.
Launch After the system passes the quality test, the only thing left to do is release it, and you launch it on a cloud server. Plus, keep maintaining and updating the system after it goes live.
Technology stack to develop the NFT marketplace on Ethereum
Now, let's see what technology stack is used to develop the Ethereum NFT marketplace.
Solidity Solidity is an object-oriented language used for creating smart contracts on Ethereum. Ownership, sales conditions, token generators, etc., logic is developed using smart contracts.
Truffle Truffle is a development environment and framework for deploying and testing the Ethereum smart contracts.
Ganache Ganache is an environment, a library for creating a local blockchain for the faster, easier, and safer development of Ethereum apps.
IPFS InterPlanetary File System (IPFS) is a peer-to-peer distributed storage system for Ethereum.
Metamask Metamask is a digital cryptocurrency wallet used for storing cryptocurrency and interacting with the Ethereum blockchain.
Ethereum smart contract
We have been talking about the Ethereum smart contract. But what are they actually? Let's find out.
In simple terms, smart contracts are terms and conditions that run automatically when sales conditions are met. So there isn't any sort of human intervention. When a user submits transactions, then it executes a special function in the smart contract. It follows the "if-then" programming structure.
Smart contracts are easily trackable since they reside on a public blockchain. Anyone can track the transaction history and related information. Still, they are secure because they are stored in a unique cryptographic address. Amazingly, smart contracts help create currency, store them, mint NFTs, and so on.
They are written in Solidity language. However, this is not the only language for implementing smart contracts. There are others, but with Solidity, it is easier to interact with Ethereum and is flexible and developer-friendly.
Some core features of an NFT marketplace include:
Dashboard Also known as Storefront, it is the home page of the NFT marketplace, where products are displayed. Plus, it includes other information such as owners, price, bids, trending and popular items, etc.
Digital wallet The NFT marketplace should have a digital wallet to store, pay, and receive for NFTs sales and cryptocurrencies. Here, you can integrate your own custom wallet or existing ones.
Listings This feature lets the users create their own NFTs, upload them, and add details.
Product page This page includes the product's description, ownership details, history of biddings, etc.
Pre-sale Pre-sale is a privilege given to the whitelist members, also known as the identified entities, to mint the NFTs before it goes for the sale officially.
Search and filters This feature helps users to search the items plus filter them based on price, date, quality, category, payments, etc.
Ratings and reviews This feature helps users to purchase a product based on its reliability and credibility. Also, it assists them to rate the products and give reviews.
Profile management This feature helps users manage their profile, update their contact details, wallet, etc.
Auctions This feature helps users to bid during auctions. It aids in trading the NFTs.
Add to cart This feature helps the users to add the items to their wishlist for future purchases.
How much does it cost to make an NFT marketplace?
Now, let's see how much it will cost you to develop an NFT marketplace. However, you need to keep in mind that various factors affect the total cost, for example
Region: One factor that affects the overall cost is the region where the company or developer is at. If you hire a developer from the US, you will realize that the charge per hour is more than in the Asian region.
Skills and experience: The higher the skills and experience, the more the developers charge. So, the senior level price is higher than the junior and mid-level.
Size and complexities: The size and complexities also affect the development cost. Since it takes more time and resources to build the app, the price also inclines.
Platforms: The platforms you are building for also affect the overall development cost. The charge for Android and iOS is different. So, you need to decide on the platforms you are targeting.
Now, coming to the development cost, here is a rough estimation of it. Here, the average price is based on the Asian region, i.e., $30/hr.
|Features||Time (hr)||Cost ($)|
|Reviews and ratings||48||1,440|
|Add to cart||48||1,440|
|Search and filters||96||2,880|
The total development cost would be around $40,170.
Also remember, as said earlier, various factors affect the total cost. So keep them in mind while allocating the budget for your NFT marketplace.
Are you planning to develop an NFT marketplace?
Then, how will Truemark help you?
Developing a complex app such as the NFT marketplace requires a team of experts with years of experience and a reliable development partner, like Truemark Technology, which will help you build your own custom platform on the Ethereum blockchain. With 5+ years of experience in software development and skilled and experienced development teams, we know exactly how Ethereum blockchain works and how to build an NFT marketplace that caters to your business needs and resonates with your brand.
Truemark has worked on numerous software projects with 100% success and satisfaction rate. We will provide you with the best NFT solutions and build your app based on your needs and requirements.
So if you are planning to develop an NFT marketplace, then we will deliver the best development services to meet your goals and grow your business. Let’s talk and make your dream project idea a reality. We also offer a free consultation service to clear all your confusion.
Cover Image Credits: Pikisuperstar from Freepik