Let’s say you have a dollar and want to trade it with a friend. When the exchange is over, you will still have one dollar, and so will your friend.
This is because a dollar and money, in general, are fungible goods, like shares of a company. If you buy a share of IBM, its value is the same no matter which stock exchange you buy it from.
But if you have an NFT and then decide to trade it with a friend, things change significantly. After the exchange, the NFT you have will differ from the NFT you gave away.
This is because an NFT is, by definition, a non-fungible entity. This means that it is unique, can’t be replaced, and can’t be split up into smaller parts. Every NFT is made up of algorithms and meta-data, making it unique and different from every other NFT. If you have an NFT, you are the only person who has that entity.
Let’s break down NFT and the NFT marketplace in this blog post. We’ll also look at the top features and types of NFT marketplaces.
Let’s jump into the fun world of non-fungible tokens (NFTs).
What does NFT mean?
Before moving forward with the development of the NFT marketplace, you should know what the NFT marketplace is. With blockchain technology, NFT, or “Non-Fungible Tokens,” are digital assets with a unique identity. Photos, songs, videos, apps, games, and other works of art can all be digital assets. You can’t trade these items for other things that are the same size.
Check out the essential things that NFT tokens have.
- Indivisibility
- Authenticity
- Non-interoperability
- Tradability
- Multiple ecosystems interact with each other
- High Flow of Money
- Complicated Planning
- Scarcity
How do NFTs work?
The blockchain ledger makes it possible to check an NFT’s unique identity and who owns it. They were first released on the Ethereum blockchain, but now they can also be used on the FLOW and Bitcoin Cash blockchains. Whether the original file is a JPG, MP3, GIF, or something else, the NFT that shows who owns it can be bought and sold just like any other type of art, and the price is mainly set by market demand like with physical skill.
If you went into an art gallery’s gift shop, you’d find copies of famous works of art. Some NFTs work the same way. There are valid parts of the blockchain, but they don’t have the same value as the original.
Most NFTs will come with a license for the digital asset to which they point, but this doesn’t mean that the digital asset owner automatically owns the copyright. The copyright owner can make copies of the work, but the owner of the NFT gets no royalties. In his video on how to make NFT art, artist Chris Petrocchi talks about secondary sales and royalties.
Different Kinds of NFT Markets
Some of the most popular non-fungible tokens and the markets for them are:
Digital Collectibles: Some examples of NFTs in a marketplace like this are game/trade cards, trophies of wins, and unique videos of rare gaming moments that have been digitized as NFTs.
Game Characters: Well-known and rare video game characters can be turned into NFTs and sold on the market.
Real estate: Non-fungible tokens can be turned into access to high-end, unique, and in-demand properties.
Music Tokens: Entire music albums or individual songs can be turned into NFTs and sold directly through particular NFT marketplaces.
Investment Projects: In this model, the NFT marketplace can work as a stock market, letting users trade specific NFTs to buy or sell them. In some developed and regulated NFT markets, these transactions can also be legal, like real estate.
The Most Important Features of the NFT Marketplace
Storefront
It is one of the essential parts of the NFT market. A storefront that works like a dashboard is usually part of a thriving NFT market. It tells users everything they need to know about an asset. For example, bids, previews, owners, the history of price and value, and so on.
Registration Process
New users should be able to sign up for new accounts quickly and then link their existing cryptocurrency wallets to the platform. If the user doesn’t already have a crypto wallet, they should be able to make one at that moment.
Look for Items
A user wants to find complete information quickly on things they need right away. Every product on the NFT marketplace platform should be set up with some features (such as images, art, videos, music, and memes). The buying process goes faster because you can search in advance and quickly. It also makes the customer happier.
Filters
Adding a filter is another way to improve the customer experience. The same things work as we talked about above. Users should be able to sort items by things like due date, method of payment, and artist. It can make it easy and quick for users to choose the right product. Also, it makes it more likely that the items will be bought.
Listing
Both buyers and sellers should be able to find the Whitelabel NFT marketplace easy to use. A well-designed NFT development gives step-by-step instructions on making a listing quickly and without any problems. So, the people who make NFTs need to ensure that users don’t have to work too hard to create and send digital collectibles. You can make a page where customers can upload files and type in the detailed item data to do this. Tags, titles, and descriptions must be given. The market should also have clear instructions and forms that provide information about selling.
History of Use
The NFT marketplace should be able to record, store, and show a user’s entire history on that platform. This includes their trading data, transaction history, and the NFTs listed, approved, bought, and sold. The platform needs to have a complete system for managing users for this feature to work.
Alerts
Based on the users’ search and transaction history, the NFT marketplace should be able to send them alerts and notifications. For example, if a new NFT is listed, the user should be able to know about it right away.
Help for Customers
The NFT marketplace should have a complete and detailed customer service system, like a live call/chat or Knowledge Center, to ensure that every user’s question or problem is solved.
Wallet for Crypto
As we’ve already talked about, every NFT transaction must happen through a crypto wallet. This is an essential part of every NFT marketplace because it’s how all transactions are made. For transactions to go smoothly, the user should be able to sync and connect their crypto wallet to the NFT marketplace. Metamask, Coinbase, and WalletConnect are some of the most popular crypto wallets for NFT marketplaces.
Possibility to bid
Bidding on anything can be fun for the buyer, and the seller always comes out ahead. Adding more ways to bid can help get more people interested. It brings in people who don’t want to buy things at the base price. Giving them the option to bid can help them get a better deal on the collectibles. But along with that, there should be a way to add the date the auction ends.
Ratings and comments
The rating from the user will tell you about your app, how it works, what needs to be fixed, and what other features can be added to make the user’s experience better. Having a way for people to rate and review your app can help it become more popular.
Wrapping Up
You can start putting your time into them after you’ve learned about the different kinds of NFTs and what they do. You can ask the developers of the NFT marketplace for help with the process.
