As NFTs are gaining popularity, so do the NFT marketplaces. As they are the only medium through which NFT artists can represent their artwork and put it for sale. Therefore, the NFT marketplace plays a most significant role in trading NFTs. According to a survey by ChainAnalysis, Over $41 Billion of crypto tokens were used to buy NFTs on Marketplaces.
Also, it is forecasted that by the end of 2025, The NFT marketplace will reach $80 Billion US Dollars worth of economy. If you are looking for an opportunity to begin your entrepreneurial journey in Blockchain Space, The NFT marketplace could be one of the best products to build. This blog will explain everything needed to Build an NFT marketplace on Ethereum and crypto business.
How to build an NFT Marketplace on Ethereum Blockchain?
Every NFT marketplace has some essential components that need to be there to offer an end-to-end user experience to the customers. Here is the list of such elements.
- An NFT marketplace Web App – A web App would be used to conduct all the activities for NFT trades
- A digital Wallet – A wallet service like Metamask supports sending and receiving tokens.
- NFT Metadata describes all the digital assets, such as the creation date, creator, image link, etc.
- A decentralized storage system – ALl the NFT assets must be stored somewhere. Most of the existing Marketplaces uses Decentralised storage system such as IPFS or the Filecoin
- Business Smart contracts – An ERC721 smart contract that contains all the standard features related to Non Fungible tokens or NFTs
- Blockchain – A blockchain network like Ethereum to deploy your NFT marketplace and its smart contracts.
To build all such vital components, there are some essential steps that you need to follow.
Six main steps needed to build an NFT marketplace are :
Step 1: Market research and Find the Right Niche for the NFTs you want to support.
A wide range of physical and digital assets in the real world can be represented with the help of NFTs. If you want to build an NFT marketplace, choose one niche to which you can relate the most. For example, the Open sea marketplace only sells digital artwork represented as the NFT tokens.
Step 2: Build a Smart contract
Smart contracts are the building block of the NFT marketplace. It is integrated with the backend, and all the business logic is defined. Whenever any user makes an action on the end application, it will trigger the smart contract function and perform the action.
Step 3: Design a UI and UX for the NFT Marketplace.
Looking at the complex Jagron of blockchain technology, it is pretty essential to design a UI that is simple to use and that any layman can understand easily. You can include essential components on your front the Search bar, a listing page, and a User Details page.
Step 4: Build a Complete Marketing Strategy
Once your application is ready to launch into the market, you can find some good partnerships in your niche and collaborate with them. With the help of a good marketing strategy, you can target many right users who might be an excellent fit for your application.
Step 5: Take the Feedback from the users and improvise it Further
Building, a successful NFT Marketplace, requires multiple iterations of development and improvisation. Once you have launched a beta version of the application, Do a complete survey and try to get the feedback of the initial users.
Step 6: Integrate some Advanced Features like Payment Gateways.
Currently, most marketplaces are shifting to traditional payment gateways to make payments. YOu can also integrate features like buying an NFT token from a debit card or the credit card. According to the statistics, only 1 percent of web3 users have a digital wallet.
Two Methods to follow while building an Ethereum-based NFT Marketplace.
There are two different approaches that one can use to build a decentralized NFT Marketplace.
- Using a Whitelabel solution for the NFT marketplace on Ethereum
- Or Building an NFT Marketplace from scratch.
If you use a Whitelabel NFT marketplace solution, your work gets minimized, as it is already built, tested, and deployed in various versions. Also, if you don’t have in-house NFT marketplace developers and have a low budget, you can adopt this method.
Building an NFT marketplace on Ethereum from scratch requires much effort and resources. If you want to develop a unique NFT marketplace and design it per your own needs, then you can choose this way. There are a lot of best NFT marketplace development companies who offer nft development services.
Tech Stack to build an NFT marketplace on Ethereum.
There are some essential elements that you can use to build aanNFT Marketplace on Ethereum.
Filecoin – Filecoin is a decentralized database where you can store some of the critical information like NFT Metadata. This storage platform comes with all the essential features needed to store data.
IPFS – IPFS is another decentralized storage application. It can store any type of data, whether a document or a media file.
Such frameworks would allow you to create the UI of the NFT marketplace. Some commonly used frameworks are React JS, Angular JS, and Vue. JS.
NFT marketplaces have become a billion-dollar business nowadays. A lot of people are developing NFTs for different use cases and always look for a platform, that can help them to trade and sell the NFTs. Building an NFT marketplace requires one to have technical knowledge about a complete tech stack such as Ethereum blockchain Smart contracts, and Frontend Frameworks.
Also, there are two different ways to build a complete end-to-end NFT marketplace — using a Whitelabel solution and building it from scratch. Both of the ways require you to have a dedicated team with expertise in Blockchain Development.
If you want to build an NFT Marketplace on Ethereum, consult our Blockchain Development team, who will help you with every step in the development cycle of the NFT Marketplace.