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How to Build an NFT Marketplace in Simple Steps

09/06/2021 9:34 AM
Why are NFTs (or Non-Fungible Tokens for those who are still coming to terms with the new phenomenon that has taken over the digital trading space) so popular? It’s intangible. You can’t really carry it around in your wallet or mount it on a wall like the taxidermied deer heads of old. Yet, the demand for NFTs seems to be rising and building an NFT marketplace is next on the list of industry giants.   

Let’s take a quick look at why NFTs are all the rage now, before we delve into the aspects of creating an NFT marketplace and the features necessary for a good NFT marketplace. 
Why Are Collectors So Invested in NFTs?
NFTs have art enthusiasts and collectors rushing to get a VIP ticket to the digital auction.

Collectors of traditional art and music desire the possession of artifacts that are unique in nature and can be used to get the envy and attention of their counterparts. Some people collect one-of-a-kind objects simply because they get a feeling of pleasure and satisfaction from it. Simply put, they enjoy beauty. Others may collect it because they see a potential market to make a good profit in the long run. 

Whatever the reason may be, collectors only want artifacts or objects that cannot be replicated by others. This is where NFTs come in, except in a digital capacity, and hence was born the need for NFT marketplace service providers to amp up the quality of the booming Non Fungible Tokens marketplace development.

Non-Fungible Tokens are non-interchangeable, with distinguishing features that cannot be duplicated, which in turn increases their desirability. 

NFTs give collectors sole ownership over unique collectibles, which can include anything ranging from sensational memes to top NBA moments. 

Since they can be used to accommodate the needs of all types of enthusiasts, the NFT marketplace development scene has quickly evolved into a multi-million dollar revenue area. 

NFTs are built on blockchain technology, namely the blockchain of the wildly popular cryptocurrency Ethereum. This means that all NFT related transactions are transparent in nature, as they are logged in a public ledger which is accessible to all and sundry.  

Since NFTs require massive amounts of energy to create, just like cryptocurrency, their scarcity increases, which in turn increases their desirability. 

Take a look at some of the defining characteristics of Non Fungible Tokens. 
 
Authenticity

Every NFT is authentic and unique in nature. When you purchase an NFT, you will be provided with an authenticity certificate that gives it legitimacy and gives you exclusive ownership rights. And bragging rights! 

Uniqueness

NFTs are not interchangeable nor can be transferred under fraudulent conditions. So, the data stored in the Ethereum blockchain regarding NFTs cannot be tampered with and it provides the certification for the authenticity of the digital assets.

Scarcity

As each NFT is completely unique and takes huge amounts of energy to create, they are scarce by default and hence more attractive to collectors. 

Liquidity

NFTs listed in one marketplace are also available for other similar marketplaces, which implies liquidity sharing business concepts.

Transparency

NFTs are created in a decentralized ecosystem, and the information regarding the transactions of NFT assets are verified publicly. Hence, NFT provides high-level of transparency, thus gaining the trust of digital traders.
What Is the User Flow Suggested By An NFT Marketplace Builder?
User flows ultimately define user experiences. Let us take a quick peek at the type of user flow you need to keep in mind while creating an NFT marketplace

The key point is to remember to keep it simple and user-friendly, so that your user can navigate your NFT marketplace quickly and efficiently. 

First, you need to make the provisions for a simple and quick onboarding process. Your users must be able to create an account after filling in all the mandatory details and clicking on the sign up button. Don’t forget to keep your user onboarding as minimalistic as possible, as users will become restless and lose interest if you ask for too many unnecessary details in the name of data collection. 

Next, assist your users in setting up an e-wallet where they can store their transaction funds. It is better to give them the option of creating a new wallet or linking their NFT account to existing cryptocurrency wallets.

Now, it  is time to develop the NFTs or Non-Fungible Tokens. Your registered users must get their work verified to ensure that they are originals, and they can do this by submitting the digital assets that indicate their work. Give your users the option to create entire collections which they can sell at fixed prices or even set up auctions where the spoils go to the highest bidders. You need to ensure that the moderation process you employ is stringent and no unverified goods show up on your NFT marketplace, as it will adversely affect the goodwill of all parties involved if you fail to maintain strict codes of quality,, 

As soon as the digital assets are verified, buyers will be able to see them listed for sales, whether at fixed prices or at auctions. 

A good NFT marketplace solutions expert will be able to assist you in creating memorable user flows that will get you a loyal user base and audience.