Mastering NFT Marketplace Development: A Comprehensive Guide for 2023!

NFT marketplace development can be the base for your future business if you believe in the potential of NFTs in terms of remuneration and utilities.

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Coinmonks

13 min readFeb 10, 2023

“NFTs.” What strikes your head when you hear the word? Ape images? Memes? Basketball videos? Something else? Irrespective of what you are reminded of, NFTs have captivated the global community with their novelty and new-gen technology. After all, isn’t there someone who loves quirky innovations right from the start?

What about NFT marketplaces? Wait, let me not get you started on yet another battle of questions! You might’ve known something about NFT marketplace development if you follow the NFT space from afar. We present you here a comprehensive guide to know everything about creating and running an NFT marketplace.

What Does an NFT Mean?

An NFT, or non-fungible token for those unfamiliar with the space, is a tokenized entry on the blockchain supporting some product. These products can be digital and physical, and even phygital (a combination of physical and digital goods). While history says they’ve been around for more than a decade, booms in 2017 and 2021 shaped the space to where it is today.

But how is an NFT significant? Since NFTs are recorded on the immutable public blockchain ledger, no one can modify data in the NFT by any means without getting exposed to the community. People can easily view the NFT’s history using blockchain-specific scanning applications, such as Etherscan, in the case of Ethereum, and find discrepancies.

What makes NFTs unique? Non-fungible tokens are unique since two NFTs cannot be alike (unless they’re specified using specific standards), with at least minimal variations. Such variations make them unable to be exchanged for one another. This is unlike fungible tokens such as cryptocurrencies (Bitcoin, Ether, or BNB), where 1 BTC token can be exchanged with another BTC token that will give the same value.

NFT Marketplaces: How Do You Define Them?

You might’ve had a clear understanding of what an NFT is from the above section. That will make our understanding of NFT marketplaces simpler. An NFT marketplace is a platform where one can create, buy, and trade NFT items. These platforms offer end-to-end solutions for people to mint and sell NFT items of different types.

A Web2 eCommerce platform can be a great anecdote to make you understand NFT marketplaces in general. You would just need to add blockchains and a few other dependent applications for an NFT marketplace. The user end will mostly remain the same, except for minor changes to suit the blockchain standards. Blockchain App Factory is one of the leading NFT marketplace creation ventures building such platforms for its global clients.

These applications form part of the bustling Web3 ecosystem that includes other prominent blockchain-based platforms such as NFT games, NFT launchpads, decentralized finance applications, metaverses, and cryptocurrency exchanges.

The Two Business Models of NFT Marketplaces

Horizontal/Generic NFT Marketplaces

Horizontal trading or generic NFT marketplaces refer to platforms that cater to a wide range of audiences by allowing sellers/creators to list NFTs of various types. One can find NFTs related to images, profile pictures, in-game items, music, memes, domain names, video clips, and more on such platforms. Some examples include:

OpenSea
Rarible
Magic Eden
Solsea
Sudoswap, and more.

Vertical/Niche NFT Marketplaces

Vertical trading or niche NFT marketplaces are applications that allow people to mint and trade NFTs based on specific niches. One should note that each of these platforms is based on a single niche, making it easier to get noticed by a niche audience. Music, in-game assets, videos, profile pictures, and artworks are popular niches tapped by these applications. Some examples include:

SuperRare
Nifty Gateway
Foundation
Sorare
Axie
NBA Top Shot
Royal
Cryptopunks, and more.

There’s Another Division As Well!

While creating NFT marketplaces, you should also know that experts at BAF can place emphasis on the range of control you can exert as the platform owner. You can either go with the traditional centralized NFT marketplace model or the new-age decentralized marketplace platform.

Although the former doesn’t fall in favor of Web3 principles, its need is felt strongly during the transition period from Web2 to Web3. The latter, though, has evolved immensely by ensuring that trades are truly carried out between peers without intermediaries. You can build your platform based on one of these models if you have suitable plans to adopt better as technology grows.

NFT Marketplace Niches to Go For in 2023

2023 is already up and running, and you’d be curious to know by now which niches could be great for NFT marketplaces. Let us see in the below points the niches where NFT marketplaces could make it big this year.

A cricket NFT marketplace can be an excellent business option as cricket is evolving into a global sport, and Web3 awareness is increasing in regions where the sport is considered everything.
Football NFT marketplace development could help you reap success, as the sport has seen heightened official adoption with FIFA and several national leagues getting into the NFT space.
A marketplace based on NFT subscription services could be one for the future, as subscription-based content is rising in popularity.
NFT platforms for eCommerce can be crucial to bringing NFTs to the real world, empowering buyers with records of ownership of original products, and allowing sellers to trace through the supply chain.
Fashion NFT marketplaces allow businesses to sell fashion products such as clothing, footwear, accessories, and cosmetics with assured originality and transparency powered by blockchain technology.
Developing NFT loyalty platforms can be another futuristic venture option helping brands to offer their loyalty membership programs and opening a secondary market.
An NFT marketplace for event ticketing & related collectibles can do wonders as event organizers have felt the need to use new technologies to attract people and ensure security.
An NFT marketplace for domains can sell blockchain domain names (such as from ENS or TNS) which can be used for people’s wallet addresses.
Healthcare NFT marketplaces can assist the pharma industry in ensuring the reach of original medications and samples and reliable patient data for professionals.
An NFT marketplace using IPFS can be an effective solution for a venture targeting thousands of transactions at any time, easing data storage through IPFS, an off-chain decentralized system.
Lazy minting NFT marketplaces have become an attractive model among creators, as these platforms help sellers save valuable money on blockchain transactions (gas fees).
A DAO-enabled NFT marketplace could be another route to success in 2023, as the Web3 community focuses more on making collective decisions, and DAOs align with the focus perfectly.
Marketplaces selling NFTs in the music industry also have gained momentum in 2023 as more musicians try out the Web3 space, getting closer to the fans as a result.
Video game NFT marketplace development can be vital for a business in 2023 as NFT gaming is expected to explode this year, with various games predicted to launch soon.
Even NFT marketplaces for photography can make big business, as the need for quality images is more than ever. What’d be more exciting for a professional photographer than to earn huge recognition in terms of money and fame?
NFT marketplaces on the Aptos blockchain can be an ideal option for startups looking to explore unconventional territories. Aptos has already earned a name for itself by labeling itself as a competitor to other Layer-1 networks.
An NFT marketplace for books can bring authors and readers closer together through NFTs that represent real-world utilities such as meet-and-greet.
NFT marketplaces for celebrities can assist famous figures in selling exclusive merchandise and collectibles to fans, creating meaningful connections in the process.
An NFT gallery platform is helpful for artists to display and sell their artworks. A specialty of these platforms is that they use advanced VR technology to bring immersive experiences to viewers.
A logistics NFT marketplace can be an add-on feature for eCommerce NFT ventures to provide buyers and sellers with the supply chain history of products.
In-stream NFT marketplaces assist in selling streaming content forms such as ones prone to censoring, behind-the-scene cuts, deleted scenes, and famous moments.
NFT marketplaces for travel can be used for booking travel tickets and accommodation with added perks that cannot be possible otherwise.
According to experts, an NFT marketplace on Theta blockchain can be a profitable venture as the network has been witnessing a sudden rise in NFT sales.
An NFT marketplace on Fantom blockchain can be a futuristic investment, as it is being seen as a network to watch out for in 2023.

Do NFT Marketplaces have a Future?

If you ask this question now, a simple answer is YES, they do! Not only Blockchain App Factory’s seasoned campaigners believe in the model, but the statistics also reflect it. The below chart from Nonfungible.com shows the NFT sales volume (in white) and the number of sales (in red) between November 2022 and January 2023. We can see that the sales have risen, signaling a potential arousal of interest for NFTs among the masses. That is also why planning for an NFT marketplace development campaign could now bear fruit during the next NFT bull run.

The below image, taken from Nonfungible.com, shows the latest 24-hour primary sales statistics (on 31 January 2022). A 33% increase in sales progressing into the next month looks healthy. Probably a reason why the NFT marketplace model can explode big in 2023.

How Does a User Utilizes an NFT Marketplace (a.k.a. the Workflow)?

Registration: The user creates an account on the NFT marketplace.
Browse/Search: The user browses or searches for NFTs they are interested in.
Detail View: The user views the details of an NFT they like.
Purchase: The user buys the NFT using a supported payment method.
Collection: The user adds the NFT to their digital collection.
Transfer: The user can transfer their NFT to another user.
Sell: The user can put their NFT up for sale.
Withdrawal: The user can withdraw any funds they have received from selling NFTs.

Advantages of an NFT Marketplace from a User’s Perspective

Ownership: Users have verifiable ownership of unique digital assets when they purchase NFTs from these applications.
Authenticity: NFTs traded on a marketplace are verified on the blockchain and cannot be duplicated, ensuring authenticity.
Liquidity: NFTs can be bought, sold, and traded easily by users without any hindrances quickly.
Portability: NFTs are stored on a blockchain, making them accessible from anywhere using a smart device.
Appreciation: NFTs have the potential to increase in value over time based on their market performance. Most NFTs come with utilities too, which must be appreciated.
Versatility: NFT marketplaces can contain a wide range of assets, from artworks to music clips to phygital collectibles to metaverse land.
Immutable Record: NFT transactions on the marketplace are recorded on a blockchain, providing an immutable record of ownership that resolves traditional copyright issues.
Decentralization: NFT marketplaces operate without intermediaries, providing more freedom and control for users on what to sell and how much to earn.

Business Benefits of Launching Your Own NFT Marketplace

Monetization: NFT marketplaces allow businesses to monetize unique digital assets in different ways.
Increased Engagement: NFT marketplace ventures drive user engagement and create a community around its brand.
Customer Data: NFT transactions on the application provide valuable data on customer behavior and preferences that can be used for improvement in the future.
Global Reach: NFT marketplaces have a global reach, allowing projects and creators to reach a wider audience. This empowers marketplace ventures to widen their community.
Direct Sales: NFT marketplaces enable businesses to sell directly to customers without intermediaries, creating opportunities for hardcore peer-to-peer trades.
Brand Building: NFT marketplaces can help build a brand’s reputation and increase its value if the underlying venture plans to indulge bigger in the Web3 space.
Cost Savings: NFT marketplaces reduce costs associated with physical space management and distribution as blockchains take care of storage and transactions.

A Step-by-Step Overview of NFT Marketplace Development

Ideation: Determine the unique value proposition of the NFT marketplace development campaign and identify target audiences.
Research: Research the existing NFT marketplaces, their features, and user requirements.
Technical Architecture: Decide on the technical architecture, including blockchain platform and storage solutions.
Prototype: Build the front-end model of the marketplace by creating mock screens that will be tested by experts.
Front-end Design: Create a user-friendly interface based on suggestions for the prototype, ensuring an optimal user
Back-end Development: Develop the NFT marketplace platform, incorporating features such as registration, purchasing, and transfer of NFTs.
Deployment: Deploy the platform to a production environment with proper security measures in place.
Integration: Integrate payment solutions (crypto and fiat) and ensure seamless transactions.
Testing: Thoroughly test the platform for functionality and performance. Use multiple cases to resolve all possible issues.
Launch: Launch the NFT marketplace and begin marketing it to potential users using various strategies.
Maintenance: Continuously monitor and maintain the platform, updating it with new features and security upgrades to stay with the trends.

Have We Forgotten Another Way to Launch an NFT Marketplace?

While the above process depicts clearly how an NFT marketplace can be created, you might’ve seen how long the process is. You might already wonder if we could have missed the alternative. No, we haven’t! Whitelabel NFT marketplace solutions have become entrepreneurs’ delight in recent times as more small-scale ventures begin their businesses in the Web3 space.

A Whitelabel NFT marketplace is a pre-built NFT platform that can be customized and rebranded by a business to fit its needs and goals. The platform is typically built by a development team and sold to multiple businesses, allowing each business to have its own unique NFT marketplace. The advantages of a Whitelabel NFT marketplace include the following:

Quick Launch: Businesses can launch their NFT marketplace quickly without having to build it from scratch.
Cost-Effective: Whitelabel solutions are often less expensive than developing a platform from scratch.
Customization: Businesses can customize the platform to their brand, including design and features.
Technical Support: Businesses have access to technical support from the development team.
Scalability: Whitelabel NFT marketplaces are scalable and can be updated with new features as needed.

Hence, Whitelabel NFT marketplaces can be used by businesses in a variety of industries, including art, collectibles, gaming, and more. The platform can be used to monetize digital assets and drive user engagement quickly at minimal costs.

Monetization Opportunities Present in an NFT Marketplace

There are several monetization models in NFT (Non-Fungible Token) marketplaces from a business’s eyes:

Commission-based: The marketplace takes a commission on each transaction made on the platform.
Subscription-based: Users pay a monthly or yearly fee to access exclusive features on the platform.
Advertising: The platform can sell advertising space to brands looking to reach NFT collectors and artists.
Premium Services: The marketplace can offer additional services like storage, appraisal, and insurance to NFT owners for a fee.

The below points show how users can gain in an NFT marketplace apart from trading NFTs:

Staking: The platform can incentivize users to hold a certain amount of tokens by staking, earning rewards for contributing to the platform’s security and stability.
Creator Rewards: A portion of each transaction can be allocated to creators as a reward for their contributions to the NFT ecosystem.

Common Technologies Used in an NFT Marketplace Application

Blockchain Networks: Ethereum, Polygon, BNB Chain, Solana, Cardano, Harmony, Astar, Avalanche, etc.
Storage Applications: IPFS, Pinata, Filecoin, etc.
NFT Standards: ERC-721, ERC-1155, FA2, dGoods, BEP-721, TRC-721, etc.
Front-end Frameworks: React, Angular, Vue, etc.
Back-end Coding Languages: Solidity, Rust, Python, Ruby, Go, C#, etc.

Costs Involved in Building an NFT Marketplace

The following elements add to the expenses involved in creating an NFT marketplace platform from scratch when working with Blockchain App Factory:

Server Expenses — $10,000
Home Page Creation — $10,000
Portals Resources and User Profiles — $ 5000
Creating Product Pages — $5000
Asset Management Portals — $11,000
Enabling Application Updates — $2000
Implementing Security Protocols -$10,000
Provisions for Search, Filter, and Sort — $11,500
Shopping Cart — $ 6,000
Payment Gateway Integration- $5,000
UX/UI Feature Development- $5000
Bug Fixing through Tests — $5,000
Third-party Service Integration — $2,000
Admin Panel Development — $10,000

Although the above costs sound high from the outside, BAF’s business teams have made sure to provide their services at economical prices compared to other vendors in the market.

Why Consider NFT Marketplace Development?

By now, you should’ve found out why developing an NFT marketplace can be a viable business in 2023. If not, we got you! Firstly, an NFT marketplace can be a stable venture at any time, as the model serves as a gateway for most newbie NFT enthusiasts, and we’re only at the beginning. Secondly, such a platform can be the base of more extensive projects, such as launchpads, games, and metaverses. The base also helps very much with the community, as marketplaces typically will have some following around them. These reasons are the most common, and more could pop up for different business niches.

Final Thoughts

Hence, we have presented you with almost everything you’ll need to know about NFT marketplace development if you intend to build a platform. If you’re still confused about how to progress with the platform creation campaign, Blockchain App Factory’s experts are here to help you from step zero till the end.

That being said, the NFT marketplace business model does have a bright future ahead as more use cases are found and brought into use. Even what you think to be an unfeasible model could make it here with some tweaks. BAF’s professional team can bring in its all-around experience in Web3 application development to perform such tweaks. Say aloud with me: NFTs are here to stay and transform how we go about our daily lives

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