Every time throughout the short but impactful history of blockchain, cryptocurrency, and its manifestations, there has been something that has stood out to become a crowd magnet. At one point in time, it was crypto coins, and then it was the initial coin offerings, and slowly, cryptocurrency exchanges started to gain prominence.
In the past couple of years, this place has been rightfully and authoritatively occupied by non-fungible tokens or NFTs as they are commonly abbreviated. In the years 2020 and 2021, NFTs were considered to be the next big thing in the crypto world. The market capitalization of NFTs grew from a measly $41 million in 2018 to a staggering $338 million in 2020. The involvement of some big names like Jack Dorsey, Lindsay Lohan, and the NBA have been instrumental in skyrocketing the value and market for non-fungible tokens.
What are NFTs?
To understand the concept of NFTs, we will need to understand what fungibility is. Fungibility is the property of an asset to be replaced by another similar asset without any change in value. The best example of a fungible asset is the dollar bill. You can easily replace a $10 bill with another $10 bill without any change in its value. It can also be broken down into smaller components.
A non-fungible token, on the other hand, is unique and it cannot be replaced. An NFT is not interchangeable, and it is an ideal candidate for representing objects like art, intellectual property, digital property, and financial instruments on the immutable ledger called the blockchain.
Properties of an NFT
An NFT is authentic. Every NFT must have an owner, and the ownership should be simple and easy to verify. It is the sense of ownership that ensures that the NFT brings pride to the owner.
Each NFT should be original. The originality is established by the set of metadata. This meta-element helps in ensuring that the NFT is what it claims to be.
The NFT should uphold the value of integrity. While it is simple and easy to divide any crypto coin into smaller constituents, the NFT should not be divisible into parts.
The NFT should be unique. There should be no other equivalent of an NFT ever to have existed and should never exist in the future. It cannot be replaced with any other NFT without any compromise on its uniqueness and value.
NFTs should exist on the blockchain and they should have the capability to create new markets and forms of investment. It is, in fact, this particular attribute of the NFT that made it a heartthrob among a lot of crypto investors.
What does an NFT mean to the world of investment?
While a lot of art purists claim that art and technology do not go hand-in-hand, history has proven that artists have always used technology to improve their art. Be it new colors like Vanta black or applications on iPad, art has always depended on technology.
Non-fungible tokens are yet another improvement facilitated by technology when it comes to trading art. The art pieces and creations that were sold as non-fungible tokens present resounding testimony to the lucrative market that lies ahead. People were ready to pay $100,000 for a virtual cat. The first tweet of Jack Dorsey on Twitter was sold as an NFT for $2.9 million in March 2021. There have been instances where a mask alien punk has a fixed value of $11.75 million, and this has evolved some of the most prominent names in the auctioning domain like Christie’s and south base.
Some existing Internet sensations like the disaster girl, the overly attached girlfriend, and the YouTube hit Charlie bit me have fetched an average of $500,000 S NFTs.
The relevance of an NFT marketplace
It would not be an exaggeration to say that NFTs have democratized the world of crypto art. NFT marketplaces have played a crucial role in this transformation.
An NFT marketplace, as the name implies, is an aggregation platform enabling art creators to display and sell that art to art collectors/consumers. Trading on the NFT marketplaces requires that both the buyer and the creator have a crypto wallet enabling them to complete transactions and store the crypto coins. In most cases, the blockchain preferred would buy a lot of NFT market places is Ethereum.
How does an NFT marketplace work?
Any NFT marketplace lets you create an account, upload digital products, list them for sale or auction, and even interact with potential buyers. There are some dedicated NFT marketplaces that specialize in a very particular niche like Looking Glass Factory specializes in holograms.
Niche marketplaces are en vogue now because of the specificity of the targets. This results in a greater magnitude of engagement and a considerable increase in the probability of fruitful transactions.
Anything said, the basic functionality of any NFT marketplace remains the same. The steps involved are as follows:
You will need to create an NFT corresponding to digital creation and you will need to specify all the parameters about the NFT including but not limited to the price, the description, whether it will be sold or auctioned, and if applicable, the domain it falls under.
If it is listed for direct sales, any potential buyer who prefers to purchase your artwork can make their payment in crypto and purchase the NFT. After a small commission is taken by the NFT marketplace, you will be rewarded with the remaining amount.
In case of an auction, it is initiated at a specific time and the buyers start placing the bids. Once the auction is over, the digital product is transferred and the cryptocurrency is taken from the wallet of the buyer. The entire process is handled by the marketplace, and in addition to the commission for facilitating the transaction, the marketplace also collects network fees.
All these transactions are handled by smart contracts that govern the transaction protocols that regulate the relations between the two parties involved. These smart contracts form the epicenter of the blockchain technology, making all the processes foolproof, automated, and highly secure.
The market for NFT marketplaces
The past two years might have seen some staggering skyrocketing of NFT sales and market value. However, it would not be an exaggeration to say that the entire landscape is still nascent and there is a lot of room for new players to step in and make not only an impact but also a humongous profit.
This presents a perfect opportunity for an aspiring crypto entrepreneur with not only an impact but also humongous profit.
This presents a perfect opportunity for aspiring crypto entrepreneurs to create their own NFT marketplace. An NFT marketplace development is the grand culmination of an impeccable and intuitive design, and engaging front-end, a robust backend, and the lack of quality engineers, business analysts, and a scrum master to oversee all the activities. The entire process of NFT marketplace platform development should be handled by a confluence of efforts from all the parties involved.
Conclusion
If you would like to be one of those who would want to hop into this lucrative bandwagon of the NFT marketplace, all you need to do is get in touch with an NFT marketplace development company. The company will take care to completely understand your requirement and present you with the NFT marketplace development platform on which you can create your own NFT shop garnished with elements of your choice on the legal front.
You can, alternatively, consider going for a white label solution. The white label NFT market play solution will ensure that you do not spend a lot of time and money developing the product from scratch. You can also be assured that the product is free from bugs that might interfere with those expected basic functionalities.
If you would like to explore the space of NFT market places, the best time is right now, and it is the perfect moment for you to take the plunge in the field of NFT marketplace development.
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