The intriguing world of digitization has been evolving immensely over the past two decades, with blockchain technology ruling the second half. Cryptocurrencies and non-fungible tokens (NFTs) have become household names as many people become enthusiastic about the endless possibilities they hold. Sensing such reception, businesses have joined the movement by establishing various applications that cater to consumers in the blockchain space. Building decentralized NFT marketplace platforms is one such endeavor most ventures do since these platforms are very similar to the Amazon and eBay of the Web2 world. We will see what entrepreneurs should consider before planning to develop such an NFT marketplace.
Table of Contents
- How Essential are NFT Marketplaces to Today’s Digital World?
- Why is Decentralization of NFT Marketplaces Necessary?
- Benefits of Decentralizing NFT Marketplaces
- Features of an NFT Marketplace Powered by Decentralization
- The Process of Building a Decentralized NFT Platform
- Top Niches to Create NFT Marketplace with Decentralization
- How Can Businesses Benefit from Such a Marketplace Platform?
With the global population becoming increasingly inclined towards digital technologies, blockchains have paved the way for enhancing user experience and digital safety. NFT marketplaces, in particular, have been leading the charge, allowing enthusiasts to bag digital assets on the go. People can buy all kinds of items, including artworks, gaming assets, virtual land, video clips, music numbers, tickets, and sports memorabilia as NFTs.
Today, the NFT market has a capitalization exceeding 2.76 trillion dollars, most of which is generated from primary and secondary trades occurring on decentralized NFT marketplaces. These applications even drive other NFT-based platforms, such as Play-to-Earn (P2E) games and metaverse worlds, by facilitating trades of in-platform assets.
While today’s NFT market functions briskly, most leading marketplaces are centralized. This means that some central intermediary is present that could change the platform’s rules and regulations without any notice. Such concerns have existed in the Web2 space, leading to the aroused welcome for NFT trading applications, but the system continues to be the same.
Decentralizing NFT marketplaces can bring in the user community to have their say in platform governance and regulatory changes. Doing so can ensure that unjust practices, such as censorship of particular types of content, do not get executed without the community’s approval. Relinquishing power from centralized authorities also drives adoption among users doubtful about NFTs due to intermediary involvement.
- Increased Ownership and Control: Decentralizing NFT marketplaces offers users complete control of their accounts and the NFT items they hold. This enriches the security of user accounts, as no intermediaries are present.
- Censorship Resistance: Such platforms do not censor NFTs based on arbitrary guidelines. This relieves creators of unnecessary burdens and allows them to create NFTs of their will.
- Increased Transparency: NFT marketplaces with complete decentralization offer full transparency of transactions, letting users view and verify transactions. Doing so builds trust among users in the long run.
- Worldwide Accessibility: A decentralized marketplace allows users from all over the world to access the platform to create and trade NFT assets, irrespective of geographical and economic barriers.
- Heightened Security: Since these marketplaces are decentralized, security concerns are eliminated. User-centric control and smart contracts render hacking attempts and data breaches.
- Community Participation: These applications encourage community participation in various ways, including collaborations and collective decision-making efforts. Doing so enables the platform to operate per the community’s wishes.
- Creator-Centric Approach: Decentralized NFT trading platforms focus on creators by allowing them to collaborate with fans. Such efforts enhance their chances of having closer relationships with fans.
- Scope for Innovation: Since the user community is involved in these platforms, innovative features and functionalities can be implemented. This could better the business prospects of the marketplace.
Smart contracts in a decentralized NFT trading platform have an increased role in overseeing and processing transactions, as no central intermediary is involved.
Native Tokens: Such an application offers native tokens that can come with utilities such as staking rewards, governance power, and trade discounts to win community trust.
Integrated Wallet: The marketplace app comes with an integrated wallet through which users can securely hold and transact NFTs and cryptos. Even external wallets can be included in the application.
The decentralized marketplace has a portal allowing users to communicate with one another to make collective decisions and engage in various activities.
The app comes with a Decentralized Autonomous Organization (DAO) that powers users to suggest proposals and participate in voting to implement them.
The storefront features all information about an NFT product. This allows businesses to tell about themselves and users to know everything about the NFT they wish to buy.
A powerful search engine allows users to search for their favorite NFTs using various options like filtering and sorting to navigate within a few clicks.
The marketplace provides a portal for people to sell their NFTs seamlessly. This portal supports both timed auctions and fixed-price sales.
The process of creating a decentralized marketplace begins with developing your vision into a viable business opportunity and documenting all requirements, including the technology used.
- Front-End Design
The NFT marketplace’s user end will be designed with various components and frameworks. Features and visual themes are added to make a rudimentary application.
- Smart Contract Development
The platform’s smart contracts governing various functions are created using programming languages relevant to the blockchain you selected.
The front-end and smart contracts are integrated to make the marketplace truly decentralized. This ensures all transactions on the platform are visible on the public blockchain.
The application will be subjected to various tests that use multiple problem statements, and defects will be resolved. The process will be executed repetitively to eliminate most errors.
Mobile App Creation
Mobile applications for the NFT marketplace will be created to attract more people. Relevant technological stacks are used to ensure optimal functionality.
The NFT marketplace is launched to the public after a closed release that comes as part of the beta testing campaign. High-octane promotions are conducted to enhance the platform’s recognition.
The marketplace is maintained continuously to eliminate any new errors that might arise. The platform can also be scaled, and new features can be added.
An NFT marketplace for artworks powered by decentralization can offer ultimate benefits to artists and collectors. With a dedicated platform for selling digital artwork NFTs, communities can have a say in many facets of business operations, including royalty provisions and auction models. The platform can also be an excellent ground for artists to interact with their treasured community.
Decentralized NFT marketplaces for gaming assets can be a perfect hub for gamers, NFT traders, and gaming platforms. These platforms set the foundation for a vibrant in-game economy driven by gamers purchasing NFT assets and in-game crypto coins. Community participation plays a primary role in deciding the application’s operations.
Profile picture (PFP) NFT marketplaces with complete decentralization can come in handy for the community holding these tokens. The platform can facilitate seamless trading of PFP NFTs alongside other activities such as gaming. The platform offers provisions for complete transparency and community involvement that enhance how the project moves forward.
NFT marketplaces selling real-world antique collectibles can be decentralized to offer a transparent experience for users to know about the assets’ history and originality. These platforms can also be helpful for brands selling alcoholic beverages that sell finely aged products. Such provisions can strengthen community trust for brands and antique item sellers.
If you are wondering how businesses can make profits out of a decentralized marketplace selling NFTs, they indeed can. The business running the platform can levy transaction fees for every sale and gain profits from native tokens. Furthermore, the venture can get strong community support and recognition, which can be vital to keep it going in the long run.
The support from the community also means the business can have perspectives from various people that can help them operate successfully. Also, with governance capabilities, businesses can gain the trust of the community by implementing suggested changes.
Henceforth, we have seen what one should remember before building a decentralized NFT marketplace for business. With NFT marketplaces becoming vital elements in today’s decentralized technological era, decentralizing these platforms will be the ideal way for an entrepreneur to garner support from the global community. If you are someone planning to develop such an NFT marketplace, you are at the right place! Our experts can assist you by unleashing a powerful platform that ensures all aspects of decentralization while offering matchless user experience and functionality. Fill out the form below to begin a business discussion with one of our professionals!