A Basic Guide to Non-fungible Token (NFT) Marketplace
As the popularity of non-fungible tokens (NFTs) grows, so does the need for a safe and secure NFT marketplace. In this guide, we’ll introduce you to some of the basic information about NFT marketplaces available today. We’ll also provide tips on how to use these marketplaces safely and securely. So, whether you’re looking to buy, sell, or get information about NFTs, this guide is for you!
This guide will cover the following mentioned information about NFTs:
1. What is a Non-fungible Token?
2. The History of Non-fungible Tokens (NFTs)
3. What is Quantum?
4. How do NFTs work?
5. How much are these NFTs worth?
6. A Comparison between an NFT Internet and the Internet Today
7. What is an NFT Marketplace?
8. Top 5 Elements to include in an NFT Marketplace App
- Advanced Token Search
- Create Listing
- Listing Status
9. How much does it cost to begin an NFT Marketplace?
What Is A Non-fungible Token?
Do you know what NFTs are? NFTs or Non-fungible tokens are cryptographic assets on a blockchain. They have unique metadata and identification codes to differentiate them from each other. If we compare them to cryptocurrencies, they cannot be swapped or traded at equivalency.
In economics, we call “fungible” the assets that can be readily interchanged – for instance, money. Like if you have a $10 note and are swapped into two $5 notes, they yet have the same value. However, if something is non-fungible, having unique properties, it cannot be traded with something else. You may count a house, painting, and another art piece as an example.
NFTs are one-of-a-kind and unprecedented assets in the digital world that only can be bought and sold but not exchanged or traded. These tokens can be taken as ownership certificates for any physical asset or virtual/digital asset.
The different construction of NFT has the ability to be used for several other cases. For instance, they can be used as the ideal vehicle to digitally represent physical assets on the Ethereum Blockchain, including artwork.
The arrival of NFTs has left a significant impact on artists and introduced a new platform for artists to showcase their abilities and skills. Artists of all types can quickly push their boundaries of creativity using NFTs, embracing them in modern and innovative ways.
As we know that they are based on Blockchains, non-fungible tokens can also work to remove intermediaries and to simplify transactions. Not just that, it helps artists to connect with their audiences.
The History Of Non-fungible Tokens (NFTs)
Before we go into depth, do you know where this technology came from?
The history of NFTs creation took place on May 3rd, 2014. The man behind the lens, awarded for its creation, is Kevin McCoy. He minted “Quantum” as his first non-fungible token, way before the market of Crypto Art exploded.
But wait, what is Quantum?
Quantum is defined as a pixelated image of an octagon, which is filled with denoting circles, arcs, or other shapes. These shapes are surrounded by hypnotically pulses in fluorescent hues. The best thing? In today’s date, an art piece named Quantum (2014-2021) is on sale for seven million dollars.
McCoy is one of the exceptional personalities, his hard work, and passion towards his goal is one of the inspirations one can count as an example. He and his wife Jenifer have made themselves heroes and top-notch digital artists through hard work and struggles.
“The NFT is one of the outstanding parts of the art world,” says McCoy.
He said that NFT emerged from the long history of artists who were engaged with creative technology. Their piece of artwork has – in the past – been sold, which were bought by eager art collectors. However, McCoy himself preferred to sell his quality artwork at a gallery or one-on-one rather than enter into public bidding wars.
What’s more? The impressive artwork of McCoy and his wife Jenifer “Every Shot, Every Episode” is on sale today. It can be viewed by anyone at the Metropolitan Museum of Art; even you can have a look.
How Do NFTs Work?
Factually, the traditional artwork can precisely be valued for being original. But digital files can be changed in a matter of time using high-tech tools. With NFTs, you can now “tokenize” your artwork and have ownership of your quality work. It can be sold or bought at any minute once approved by the owner.
Here, blockchain is known as a record of who owns what is stored on a shared ledger. The plus? All those records cannot be duplicated, copied, and forged because the ledger is well-looked-after by thousands of computer systems worldwide.
NFTs can give the artist a cut of any future sale of the token through smart contracts, as they contain them.
How Much Are These NFTs Worth?
With the rise in NFT transactions, the rise of cryptocurrency use has been blurred. The NFT transactions have risen from $40.96% million (recorded back in 2018) to $338.04 million recorded last year, 2020. That’s an impressive rise of around 8x within two years. If we compare stats of 2020 to 2019, 2020 has seen an unprecedented increase of roughly 82%.
According to resources, an animated GIF of Nyan Cat, a 2011’s meme of a flying pop-art cat, was sold for more than $500,000 back on February 29th 2020.
After a few weeks of this enormous success, musician Grimes sold her extraordinary digital artwork for more than 6 million dollars.
What is even more exciting? It is not only about the art and a piece of property that can be sold or tokenized. Recently, Twitter’s founder Jack Dorsey has sold the first-ever tweet as a non-fungible token. This token worked as a seal of authentication that confirms that whatever one is buying is genuine and unique.
Not only that, Christie’s sale of an NFT has set a new record for selling out digital art for 69 million dollars. Similarly, French firm Sorare has sold football trading cards in the form of NFTs and raised around 680 million dollars, which was record-breaking.
A Comparison Between An NFT Internet And The Internet Today
An NFT Internet
The Internet Today
NFTs are quite unique in comparison to each other, no two NFTs are similar.
We can use a copy of a file, like MP3 and JPG. They work as original but are copied.
All NFTs are owned, which makes it easy for anyone to verify.
Ownership records of digital items are stored on servers controlled by several institutes – you have to rely upon them.
NFTs are attuned with anything made using Ethereum. An NFT ticket for an event can easily be traded.
Every digital company has to build its infrastructure. For instance, the company needs an individual app to issue a digital ticket for events.
What Is An NFT Marketplace?
A platform that makes you able to preserve and trade NFT without any concerns. At the NFT marketplace, you can buy or sell these tokens at market-competitive rates. One essential thing for NFT users is a crypto wallet to make transactions and token storage. One of the best markets is OpenSea, where you can buy or sell NFT artworks.
The NFT marketplace help users to develop an account and make sales of their digital artwork. Generally, you have to register yourself and connect the crypto wallet you already owned to your NFT account to use a marketplace. Rest you require these given steps to follow:
- Make the desired NFT and define all ideal factors
- List your artwork or any other digital skill that you can sell and wait for the complete submission
- Wait for buyers’ bids and auctions
- When the auction is completed, wait for the transference of crypto-currency by the marketplace
An NFT marketplace uses intelligent contracts, which we also call particular transaction protocols. These protocols work as the connections between the seller and the buyer. Moreover, the protocols or smart contracts identify data linked with an NFT. Henceforth, it is proved that the process of marketing your product or selling and buying tokens is convenient and user-friendly.
Top 5 Elements To Include In An NFT Marketplace App
Here we listed out a few essential features that you need to add to an NFT marketplace app; let’s have a look:
One of the key features of having a thriving NFT marketplace is its storefront that works like a dashboard for the audience. It gives users with the required information needed for an asset – for instance:
- Value History
Advanced Token Search
Before getting involved in an NFT marketplace, customers have to get complete product selling and purchasing information. Therefore, in your NFT marketplace app, you must comprise the products arranged with the details of key features and qualities. The best part? Faster search boosts the clients’ satisfaction.
One of the finest things to do is use filters, and it is highly beneficial. Moreover, it gets easier for customers to undergo a website with filters. Add this feature if you want to make an NFT marketplace an ideal platform for customers. It helps users easily choose options by category, listing status, and payment method.
To make your NFT marketplace standard, create a page where customers can list their collectibles, submit files, add information like tags, title, and description. It is one of the necessary steps to add value to your NFT marketplace.
Listing status is essential for people who offer products with an authentication process. It allows customers to check the status of their listing process and how far it has gone and helps execute collectible verification.
How Much Does It Cost To Begin An NFT Marketplace?
The cost and duration of this procedure include the performance of the marketplace. In case if you want to have a platform that is not complex, you need to infuse a little more money than usual to develop an NFT art marketplace.
If you are going for a readymade solution, there is no assurance and security. Moreover, the product’s dependency is based on the platform from where you are receiving a key.
On the contrary, you can hire a software development team to create a custom app for you because then you will not have to face any flaws. The specialists will make a platform with a user flow, functionality, quality features, and design from the beginning to the end. All you need to do is invest money.
The NFT marketplace is a great way for creators to easily get their products in front of the public. If you are looking for an easy, fast, and cost-effective way to sell your creations, this may be it! Have you tried selling any items on the NFT marketplace? Let us know how it went by commenting below.