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What is an NFT marketplace, and how to build one successfully?

Arcana Network

Mar 6, 2023 • 5 min read

The popularity of NFTs (non-fungible tokens) has skyrocketed in recent times. From Nike and Adidas to Snoop Dogg and Bella Hadid, NFTs have garnered attention from leading brands and celebrities. As a result, the global NFT market is around $11.3 billion today, significantly higher than the figure of $100 million in 2020.The popularity of NFTs has increased interest in people looking to know more about NFTs and associated marketplaces. If you are curious and want to learn how to build an NFT marketplace, this guide will help you. Let’s first look at what an NFT marketplace is.

What is an NFT marketplace?

An NFT marketplace is a specific trading platform that operates like your e-commerce platform, Amazon. Users can store, buy, sell, auction, and mint NFTs. Creators can list their NFTs at a fixed price or conduct an auction. Users need a crypto wallet to store and trade tokens.NFT marketplaces also have specialised niches like digital art, music, etc. Public NFT marketplaces allow everyone to participate in buying and selling. Some exclusive private marketplaces are invite-only for users.

Tips for choosing NFT marketplaces

As a user, you need to consider these things before choosing a marketplace to buy your first NFT. The checklist is also a way for developers/builders to understand their consumers.

Compatibility with crypto walletsThe NFT buying platform should have various payment options and crypto wallets. The blockchain architecture you choose will largely determine how well it will support the different types of tokens. It is always better to give multiple options to your users for payments.
Marketplace typesYou can have either an open, proprietary, or curated marketplace. Marketplaces like Rarible and OpenSea are a few examples of open marketplaces where users can buy, sell, and mint NFTs. On the other hand, platforms like Nifty Gateway and SuperRare are curated NFT buying and selling platforms that remain open only to an exclusive set of users.Creators who want to be part of such platforms must meet the criteria decided by those NFT marketplaces. Proprietary marketplaces further go down the line in terms of exclusivity. These platforms host only those NFTs that have got minted on their platform. NBA Top Shot is a leading example of a proprietary marketplace.
Gas feesIt is the processing fee required to complete transactions on blockchains. Blockchain miners need compensation for their efforts to verify blockchain transactions. Complex transactions can also involve a higher fee. Ensure your platform has reasonable fees to hold users for the long term.
Project offeringsYour NFT marketplace can have support for one or multiple projects. When you have several projects, your users will have more options. Furthermore, it will also hold well for your NFT marketplace.
SecuritySecurity is essential for both creators and buyers. When you offer a secure platform, it will instantly help build trust among your audience. Ensure you have identity verification and encryption methods to safeguard your users.
RatingsRatings help users decide whether or not they should trust a platform. You would want positive reviews from your existing users to attract new ones. Incentivising users to share their reviews and experiences using your platform is a better option.

Popular NFT marketplaces

Here are some best NFT marketplaces to inspire you.

SuperRareSuperRare is one of the best ways to trade NFTs. It is a platform that focuses on unique items. Besides trading NFTs, users can also mint them on the platform. SuperRare lists unique NFTs from the choicest digital artists. Those artists also get to earn royalties from the sales of their NFTs.
OpenSeaUnlike SuperRare, OpenSea offers a range of NFTs from various fields. Some popular ones include music, photography, and collectables. Users can display, trade, and create NFTs. On the Polygon blockchain, the platform even eliminates gas fees. Axie Infinity and CryptoKitties are some popular projects listed on OpenSea.
RaribleRarible is another name on this list of some of the best NFT marketplaces. Users can list and trade their NFTs besides creating them across categories like music, videos, and collectables. In addition, the platform allows users to transact with its native token, $RARI.
FoundationIt is a premier NFT marketplace where only invited artists can participate and list their creations. It is open to varied types of buyers who only need a crypto wallet with enough funds to make purchases. Buyers can also use debit and credit cards to buy NFTs.

Thinks to choose while building an NFT marketplace

Here is a five-step guide to help you build the NFT marketplace.

Select the blockchain architectureThe blockchain technology you choose to create an NFT marketplace will significantly impact the project. You should select a reliable blockchain that guarantees stable performance to build trust among users. Some popular options include Ethereum, Cardano, Polygon, and Solana.Opting for these blockchains can be expensive as you may have to seek the help of skilled developers. The integration remains complex, necessitating the need for expert minds. Besides the initial setup, you will also have to pay the gas fee for every transaction.
Opt between open and closed marketOne of the differences between an open and closed marketplace is the support of tokens. An open marketplace will support a wide range of tokens, while a close one will only have a proprietary one. For example, open marketplaces like OpenSea offer support for over 150 tokens.Anyone can use an open marketplace to list the NFT of their choice and command the desired price. There are also no issues regarding the compatibility of NFTs with a blockchain architecture to buy or sell assets.
Identify the commission fee.The commission fee is the profit margin you want to charge for every transaction on your marketplace. You can think of various possibilities around monetisation and how best you want to implement it. However, remember not to moderate the fees, as several other providers offer the same service.It will take little for your audience to shift loyalties if they find your fees too high. If you offer some out-of-the-box features, you can justify a higher cost. Trust, security, and ease of use should be your top priorities in the initial days of building your NFT marketplace.
UI/UXUI/UX is something you need to consider to offer a smooth experience to your users. You can think of it once your core architecture is ready and approved for development, you can think of it. UI and UX will include the way you showcase the homepage and other aspects of your NFT marketplace. A key aspect to remember is to make it as user-friendly as possible.
Build a communityCommunities are essential to create engagement and guarantee long-term use of the services when you build the NFT marketplace. It is also one of the best ways of ensuring repeat purchases. When the marketplace is ready, consider adding users to a private club of like-minded individuals. The world of web3 is already reaping rich gains by building communities on platforms like Discord.

Bottom line

Now that you know the various aspects of an NFT marketplace, you should create one. Remember to consider all the possibilities, including seeking the support of expert service providers who have been there and done that. It will help eliminate uncertainties and save precious time and costs when building an NFT marketplace.

About Arcana Network

Arcana is Web3 infra for devs to launch and scale apps through its Auth, Store, and Access SDKs. Web3 apps use Arcana’s SDK to authenticate users with Social and Passwordless Auth and create non-custodial wallets, Store Encrypted/Unencrypted Data, and Manage Access. Built for Ethereum and EVM-based chains, with Arcana’s privacy stack, developers can build secure and privacy-preserving apps with a seamless user experience.Arcana has raised 2.7Mn USD from some of the leading investors and founders in the ecosystem, such as Balaji Srinivasan, Founders of Polygon, Woodstock, Republic Crypto, and Digital Currency Group.Watch out for Arcana’s upcoming Mainnet in December 2022. Want to know more about our Mainnet features? Book a demo.

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