It is Q3 2021, and the frenzy around blockchain-based digital tokens called “non-fungible tokens” (NFTs) has been very high across the year. This period is getting even more influx of tokens. Suddenly, the market cap of these tokens touched the 1 billion-dollar mark for the first time, which justified their potential. Yet, industry experts know that there are more untouched waters inside the tokenized world. This has been becoming increasingly true even after the 2021 NFT boom. The instruments behind these breathtaking records have been NFT marketplace solutions. These platforms helped to facilitate thousands of NFT transactions every day, irrespective of market trends.
NFT Marketplace Solutions: An Introduction
An NFT marketplace solution is a platform where users can create, purchase, and trade assets backed by non-fungible tokens. These platforms are built on blockchain networks so that they can support NFT assets. They can either be based on horizontal or vertical trading models, catering to the general and a niche audience, respectively. These NFT marketplaces feature many kinds of assets, including art, profile images, music, video clips, and in-game items. Some even sell sports memorabilia, trading cards, physical items, and even virtual real estate.
Examples of popular generic NFT marketplaces include OpenSea, Magic Eden, X2Y2, LooksRare, and Rarible. Famous niche-based NFT marketplaces include SuperRare (Art), Foundation (Art), Decentraland (Metaverse), Splinterlands (Game), Axie Infinity (Game), and CryptoPunks (Profile images).
Requirement of NFT Marketplaces
We now know that NFT marketplaces can allow users to trade NFT-based items. But, if you know more about Web3, you might wonder about the relevance of NFT marketplaces for trading NFTs. The term “Decentralization” might bring a spark that could question the existence of these platforms in the first place. The question might be perfect when you consider peer-to-peer (P2P) trades. But, most trades are open sales targeting a broader user base, even for resales. Also, auctions are common in the NFT space that further increases the need for these platforms. Taking an anecdote from Web2, one should consider NFT marketplaces as equivalents to eBay rather than Amazon. One should also note that these can be integrated into other applications such as NFT games, NFT launchpads, and Metaverses.
Popular Features Available in an NFT Marketplace
- Multi-factor Authentication (MFA) helps to keep users’ data secure by making it hard for malicious actors to hack their accounts.
- User profiles can be used by people to keep track of their activity. NFT marketplace businesses can collect user data from these with consent if required.
- A Homepage is a necessity for any website. As an NFT marketplace feature, it is absolutely important to be very attractive and designed according to its focus niche.
- The Search tab can assist users in reaching their favorite NFT collections and sellers easily. This eliminated the need to navigate through the whole marketplace platform.
- The Filter tab helps users to refine their search to narrow down to their favorite NFTs. A wide range of constraints are available, including cost, age, and niche.
- The Storefront contains all information about an NFT asset, including descriptions, images, price, ownership history, and value history.
- A Shopping cart can benefit users to choose multiple NFT assets (in fixed-price sales) and pay for them finally. This allows them to buy various NFTs at a time.
- Payment gateways can assist users in paying for their NFT purchases using various cryptocurrencies, stablecoins, and even fiat options.
- An Integrated crypto wallet can enable users to store cryptocurrencies, platform native tokens (if available), and NFT products. This ensure safety without risking their personal wallet account.
- Smart contracts in an NFT marketplace solution are vital as they process every NFT transaction made inside the platform. They work based on the conditions set by sellers.
More Features That Make NFT Marketplaces Seamless
- The Seller portal allows sellers to view and track analytics regarding sales of their NFT products and their current status.
- The Admin portal allows NFT marketplace administrators to look at their business’s performance through sale statistics that updates automatically.
- The Bidding portal allows buyers to place bids on an NFT on sale along with live statistics. This help prospective buyers make informed decisions before placing a bid.
- The Listing portal allows sellers to list their NFTs for moderation. Administrators can verify and put them up for sale on the NFT marketplace solution.
- The Listing status allows sellers to see the status of their NFT assets sent for admin moderation. This ensures transparency all around the NFT marketplace.
- Ratings is an important NFT marketplace feature that helps new users to find the best-selling NFT collections. Descriptive reviews can help newbies make clear decisions.
- Private listings allow peer-to-peer (P2P) NFT trading, which can be used for selling NFT assets to near ones securely.
- Fractional NFT listings allow NFTs to be divided into portions that can be sold to many people at lesser costs. This is useful for crypto fundraising campaigns.
- Decentralized Autonomous Organizations (DAOs) enable users to become part of the NFT marketplace solution through governance rights. Here, they can vote on making changes to the platform.
Therefore, we can say that these platforms’ future depends on NFT marketplace features, as they are associated with offering user experience. NFT marketplace solutions with enchanting features and simple user interfaces have been hits in the past and will be successful. Such businesses require a lot of minds to work together to run them. An experienced NFT marketplace developer team can offer technical assistance to realize the platform.