Digital collectibles are in the news around the world and people are incredibly excited about owning rare digital assets. As a result, non-fungible tokens quickly joined the race of investment plans for individuals.
NFTs worth billions are traded on digital platforms
These digital platforms are called NFT marketplaces. NFT marketplaces work like any other marketplaces facilitating the sale and purchase of NFTs. Moreover, these NFT platforms bridge the gap between buyers and sellers by helping them complete their transactions.
NFTs built with blockchain technology will protect the uniqueness and authority of digital assets. The blockchain network prevents digital assets from being stolen, replicated and manipulated. This is the reason why digital creators are taking the NFT route to generate their income. In this blog, we will briefly discuss the development of the NFT market.
Are NFTs emerging as trendsetters?
Blockchain technology has created a huge revolution where industries have adapted them to manage their operations. The data and transactions recorded in the blockchain are highly secure and no hacker will ever dare to hack them. Here, data is saved as blocks in different digital registers.
It therefore becomes difficult for third parties to hack data and transactions. Moreover, when the same technology is used to develop the digital assets, they prevent replication or hacking of NFTs.
When the concept of NFTs was invented in 2010, barely a hundred total NFTs were sold. The scenario has entirely changed where thousands of NFTs are being sold in every nook and corner of the world. CryptoKitties and CryptoPunks stand out as a branded NFT collection that has sold for millions of dollars.
According to a statistical report, Axie Infinity, the leading NFT gaming platform, witnessed a transaction worth $3.5 billion in 2021. On the other hand, CoinBase, a gaming platform leading cryptography, announced that by the end of this year, it will launch its NFT platform. This information came out after their user base ramped up in October 2021.
Different use cases for NFTs
NFTs have created a great hype in the market where people from different parts of the world are expressing their interest in NFT trading. This interest is the main key to motivating entrepreneurs to explore innovative ideas to venture into the NFT market.
To know precisely the use cases of NFTs, here are many business uses that you should know before you start developing your NFT marketplace and Game. NFT gaming is a very lucrative business model where NFTs are turned into a gaming concept.
After the great success of NFT gaming platforms like Axie Infinity, entrepreneurs are showing more interest in launching their businesses in the NFT gaming space. By participating in NFT games, players could earn exciting rewards in the form of NFT.
Game characters and collectibles are developed in the form of NFTs, which can then be traded on other NFT platforms.
DeFi, which stands for decentralized finance, is something that works based on blockchain technology. NFTs have ventured into nearly every form possible. The concept of DeFi NFT is to encourage individuals to pledge their NFTs and get money in return.
What if someone is low on money but has NFTs worth millions. This encourages them to pledge their NFTs and withdraw money from them.
Fashion clothes and wearables
In 2021, popular fashion brand RTFKT sold a digital jacket for a whopping $125,000. Fashion NFTs are the next big thing in the NFT market, where popular brands are focusing on launching their fashion NFTs and digital collectibles.
By releasing their products in the form of NFTs, they can prevent their products from being manipulated and reproduced. In addition to NFT digital tokens, users will also have their products and items in hand.
NFT tickets are buzzing as the next big thing in the NFT space. You might be wondering what’s so special about NFT Tickets? Tickets for major sporting matches and events are tokenized in NFT so NFT enthusiasts won’t run out of paper tickets.
Paper tickets are often missed and misplaced because event organizers are stuck in between. NFT tickets will also provide NFT enthusiasts with real-time utilities.
Prerequisites to consider for the development of the NFT market
NFT platforms are the perfect way to generate revenue for entrepreneurs. From minting to trading, every NFT-related service will bring revenue to platform owners. Therefore, when people want to buy and sell NFTs, it is important to create a perfect NFT market.
Here are the following areas you should consider before developing an NFT platform.
Development of a crypto wallet
Before developing an NFT platform, you must set up an Ethereum wallet compatible with all blockchain technologies. More importantly, ERC-721 must be supported in the platform.
However, you can choose between a range of wallets such as MetaMask, Coinbase and Trust wallet which will be compatible with the development of the NFT market. So select these reliable wallets for your platform.
Secure user accounts
Allow users to log in securely with their credentials. Make sure they follow simple and easy procedures to connect to your NFT marketplace. Creating an account on your platform will further allow them to trade on your platform.
When users trade their NFTs on your platform, they will be charged transaction fees. Transaction fees or gas fees vary by type of NFT and vary from platform to platform. So decide what transaction fees you want to set for your NFT platform.
UX/UI design of NFT platform development
The platform design and outlook is the main feature that will invite huge users to your platform. A friendly user interface is the key to success. So approach your developers with a clear plan for your UX and UI design.
An NFT market must operate in a decentralized manner. These platforms do not require any human or third-party interference. All platform activities must be automated.
As we all know that blockchain technology is at the heart of NFTs, it is essential to select a reliable blockchain network for your NFT platform. It will help you design a perfect NFT platform for users.
How to shape the functioning of your NFT market?
When you have a clear model for your platform, you need to start focusing on its working model. If the platform does not follow a particular operating model, users will ignore your platform. This is how you should design the working model of the NFT platform.
- Users must go through a simple registration process where they can register with their email addresses, passwords and contact details.
- Users’ existing crypto wallets are linked to their NFT platform accounts to store and trade NFTs.
- Digital artists can mint their NFTs by adding their descriptions and setting a price for NFT collections.
- The platform will validate digital collectibles and list them in the NFT Collections Sales Platform.
- Sellers should have two options of Bid and Sell. First, they can price NFTs and list them for sale and auction.
- When developing the NFT platform, you have to choose between providing the bidding methods in English and in Dutch for individuals.
- At the end of the auction process, users and sellers will be notified of the winners of the auction process.
- The platform should be developed in such a way that users are allowed to pay using any of their possible payment methods.
Interesting features to include in the development of an NFT platform
The NFT market should provide fundamental functionality that is very important for the operation of a platform. To launch an NFT platform, you need to integrate the following features of your NFT platform;
- A beautiful showcase will allow users to know and better understand NFTs. They can see the history and owners of NFT collections.
- Digital creators can list their NFT collections to sell or auction them on the platform.
- Users can search their interested NFT collections on the platform and filter them based on their criteria.
- The platform’s intuitive UX/UI should attract users when they approach your platform.
- Multiple payment options should be available for users to pay using any of their possible payment methods.
How interested are you in establishing a solid development of the NFT market? There are plenty of options next to you! But, first, you can adopt a white label NFT marketplace and start shaping your NFT platform!