As a crypto enthusiast, one couldn’t restrict themself from hearing the term Non-Fungible Tokens (NFTs) each day as they stand tall in the trending concepts of the crypto industry. The surge in the last three months is immense, and even celebrities, artists, musicians, and other content creators have shown a big thumbs up for NFTs. They commenced converting their masterpiece into NFTs, thereby promoting the sale between audiences. Unlike crypto exchanges, NFTs could be traded only in marketplaces and in fact, it has now become a successful business model as the craze of NFT is at its peak. Hearing all these, we could guess that one question that comes to your mind, “Should I kick-start my own NFT marketplace straightaway?” Perfectly right, this blog is exclusive for the cryptopreneurs who yearns to create their own NFT marketplace. We assist you with the ideal checklist that is essential before you step into the NFT business.
What Is A Non-Fungible Token?
Let’s get started right from the basics. NFTs are tokens that are greatly different from regular cryptocurrencies. They hold unique data in each NFTs, making it non-interchangeable. Considering Bitcoin or fiat-currencies, they could be interchanged for other currencies owing to their similar value. Say, one BTC is equivalent to another BTC. But the same is not the case in NFTs. The value in the tokens could not be replaced, replicated or even stolen. Also, they are indivisible in nature, meaning that the value could never be split or divided. The non-fungible tokens are utilised to represent both tangible and intangible assets such as arts, intellectual properties, virtual properties, financial instruments etc. It provides users ownership of assets and acts as proof of authenticity.
It is its authenticity, integrity, originality, place of existence, and ability to be unique in nature makes it a splendid asset in the crypto industry.
What Is An NFT Marketplace?
An NFT marketplace is a kind of platform that permits the users to purchase, sell, and hold the NFTs. It is the place where NFTs will be listed for sale, and buyers would bid an auction to purchase it. In short, it could be compared to the crypto exchanges that usually allows users to trade cryptocurrencies. Here, the NFTs could be of any form – be it music, art, photo, video, virtual collectables, digital accessories and much more.
It facilitates the transaction only when the users have their crypto wallets. Through wallets, one could access the marketplace and safeguard the traded NFTs in the wallets. OpenSea, Rarible, and Mintable are some of the well-known NFT marketplaces. Also, the marketplaces are of two kinds – the one that acts as an open-source for all creators, while the other act as closed marketplaces, which permits only approved creators.
NFT Marketplace Business Model Checklist
If you are planning for a tour or packing your suitcase or even if you go for purchasing your monthly groceries, keeping a checklist will help you save a lot of time and make the process simple. With such effective usage, we are now stepping forward to prepare a checklist before you go out to develop a perfect NFT marketplace.
Prefer Your Blockchain Network
The growth of technology is immense, and so does the blockchain network. Though we all widely talk about Ethereum-based blockchain network, NFTs could also be developed in various other blockchains encompassing,
- Azure Blockchain
- Open Chain
Choose the apt network based on your requirements. This preference will form the basic foundation for your NFT marketplace.
Prefer Your Token Standards
Once the blockchain network is chosen, it is now mandatory to select the perfect token standard matching your essentials. For instance, if you choose Ethereum blockchain, the token standards would be ERC-721 or ERC-1155. Discussing some of the popular NFT standards below.
ERC-721: It is a maiden standard developed for NFTs. It is a one-of-a-kind free and open standard that describes the development of NFTs in the Ethereum blockchain.
ERC-1155: The Enjin standard offers a great deal in serving the semi-fungible nature tokens. It is a new standard of creating non-fungible tokens as it allows much efficient trade and clustering transactions.
ERC-998: It can be called an extended version of the ERC-721 standard. It comes into the picture when a cluster of ERC-721 tokens and ERC-20 token are purchased together.
TRC-721: It is a token standard based on the TRON blockchain network. It is asserted to be entirely compatible with the ERC-721 standard. The unique infrastructure involved provides hassle-free deployment of TRC-721.
Prefer Your Domain
The domain is one of the crucial factors influencing the marketplaces. The modern-day NFT marketplaces have umpteen domains to seize the attention of users. The users make use of the marketplaces only if their favourite domain is included. Some of the fascinating domains comprise,
- Trading cards
- Domain names
So such an assorted range of domains easily grabs the user’s attention and provokes them to trade the assets.
Prefer Your Type Of Marketplace
As said previously, open NFT marketplace and closed NFT marketplace are available in today’s crypto market. Depending on your necessities, prefer the right type of marketplace. The only difference between the aforementioned types is that open marketplace permits all the users to participate in the trade, while closed marketplace permits only approved users.
Thus, these four categories play a significant role in building an effective NFT marketplace. Once you are clear with these factors, it saves time and makes the process proceed faster as well.
How Does Cryptocurrency Exchange Script Lend You A Hand?
We are a trailblazer in providing alternate solutions and services in the field of cryptocurrency and blockchain. Our well-experienced crew will bring out the best for providing you with a first-class NFT marketplace. Schedule a meet straight away with our crew and get to know the complete process involved in building the marketplace. Also, visit our website to acknowledge our spectacular NFT-based services.