WHAT IS AN NON-FUNGIBLE TOKEN(NFT)?
The term non-fungible refers to something that is unique and dissimilar. The value of a non-fungible asset changes varyingly depending on the type of asset. Non-Fungible Token is introduced by minting it in the blockchain using the NFT standards. This token is kept on a blockchain and provides a proof-of-ownership of any virtual or real asset. Since NFTs are attached to the blockchain, they are secure and immutable which means that their data cannot be deleted, replicated or changed.
NFTs can be used to virtually represent any type of real or intangible asset such as music, art collectibles, video files, audio files, tokenized real-world assets, virtual items and virtual lands within blockchain-based video games.
At the present time, the value and the volume of sales of NFT marketplaces have escalated to an astonishing level, along with the valuations of NFT tokens. Given the extraordinary growth of the NFT market, non-fungible tokens serve as an amazing business opportunity.
HOW TO CREATE AN NFT(NON-FUNGIBLE TOKEN)?
In order to create a non-fungible token, the user does not need to be equipped with in-depth knowledge of the crypto industry. The first and primary step, the user should take is to start with choosing the blockchain for the creation of non-fungible tokens.
Currently, Ethereum is the leading blockchain leader in terms of the creation of NFTs. Many other blockchains have gained popularity in the recent period of time that including Binance Smart Chain, Tron, Polkadot, Tezos, and EOS. Each blockchain provides its own NFT token standard, compatible electronic wallet services, and marketplace development platform. For example, if the user creates an NFT on a Binance Smart Chain, the user can only be able to sell it on marketplace platforms that support Binance Smart Chain assets.
Once the token is minted on the blockchain and turned into an NFT, it is stored in the digital wallet. The NFTs stored can be replicated by anyone on the internet, but blockchain confirms the authenticity and provenance, which means that it confirms the user’s ownership of the original NFT.
WHAT IS A NFT MARKETPLACE?
A Non-Fungible Token is a unique digital asset or a digital certification of a good. Unlike in Bitcoin, Litecoin, Ether, and other fungible tokens, NFTs cannot be traded directly, it requires a special platform to do so. These special platforms are called NFT Marketplaces. These marketplaces are decentralized platforms where buying and selling of Non-Fungible Tokens take place. The digital assets in the platform can be sold at a fixed price or can be initiated through an auction. The majority of the marketplaces require the buyers and sellers to have an electronic crypto wallet to proceed with the transactions. There are different types of marketplaces, some are more exclusive and most of the marketplaces are concentrated on the creation and selling of arts.
There are several NFT marketplaces to purchase NFTs such as Nifty Gateway, MakersPlace, OpenSea, Decentraland, etc. Specific types of NFTs can be purchased from specific types of NFT marketplaces such as NBA Top Shot for basketball videos & images and Valuables for tweets.
Some marketplaces charge a fee for gas which is the energy consumed for a transaction to take place in the Ethereum blockchain. The fees vary depending on the marketplaces. The conversion of traditional currency into Ethereum is the common mode of payment for the fees.
The selling process of NFTs varies depending on the marketplace. At first, the user should upload the contents in the marketplace and follow the instructions to turn it into NFT. After completing the conversion process, the user will receive the opportunity to add a description of the digital asset and set a fixed price. Ethereum is the commonly accepted cryptocurrency for transactions in the marketplaces.
HOW TO CREATE AN NFT MARKETPLACE?
These are the following steps to create a non-fungible token marketplace:
- Define Niche:
To create a successful NFT marketplace, the developer needs to be aware of the digital market, The developer should concentrate on the vertical market rather than the horizontal market. Horizontal market suppliers sell everything to everyone whereas, in a vertical market, the supplier sells the products that meet the requirements of a specific type of target group.
- To choose the user roles:
Buyers, creators, and administrators are the three types of user roles in the NFT marketplace development platforms.
- Project Documentation:
This site development process commences with the documentation of the project. If the user is fine with hiring a full-time development team, project documentation is unimportant but to manage a remote development team, project documentation is one of the most essential processes as it saves time and gives a detailed roadmap towards the next step of developing an NFT marketplace.
- Development Stage:
In the development stage, the user selects the framework for their project, dedicated SDKs are used to ensure fast platform operation, good performance and reliability.
- To implement Token Generators:
At this stage of development, token generators are implemented to generate small contracts. Small contracts are self-executing contracts with the terms and agreements between the buyer and the seller in the form of code lines. The code and agreement contained there exist across a decentralized, distributed blockchain network. Implementing logic to the web page is the primary function of token generators.
- Test and Execute:
This is the final stage which helps the user to locate bugs and fix them. It ensures an error-free launch of the product. Additionally, software testing ensures that the current project meets the requirements of the original project. The primary reason why this stage is a crucial stage is that an effectively tested software product provides security, reliability, and high performance.
WHY CHOOSE BLOCKCHAIN APP FACTORY AS YOUR PRIMARY NFT MARKETPLACE SERVICE PROVIDER?
We at Blockchain App Factory provide NFT development services to clients who are interested in creating an NFT marketplace or any services that are related to Non-Fungible Tokens. We are a globally recognized agency with several years of professional experience in hand. Our professional developers are highly skilled in creating a competing NFT marketplace platform based on your custom-made requirements and specifications. Our blockchain team works 24×7 to assist your business entity. The entrepreneurs and investors can avail of these services by contacting us!