No one expected such a diverse set of technologies to be combined into a massive ecosystem when Web3 technology first appeared in the middle of the 2000s. Although full-scale integration has yet to be achieved, the surprising opinion is proving itself wrong by experiencing massive growth in the last decade. Blockchains are one of the most critical aspects of Web3, which has developed as a hub for various applications such as cryptocurrencies, non-fungible tokens (NFTs), decentralized finance (DeFi), and other related applications.
Non-fungible tokens are digital tokens that act as proof of ownership and legitimacy for assets. The main NFT-based applications are marketplaces, games, and launchpads, with marketplaces being the most valuable. Hard-core decentralization has been the ambition of the crypto community in recent years, and a few NFT marketplaces have implemented such protocols. This article demonstrates how community-based decentralization techniques can benefit NFT marketplaces.
What is the definition of a web 3.0 marketplace?
People can purchase, sell, and exchange NFT-based things on an NFT marketplace. These markets can sell both generic and specialist NFT products. Art, music, film, game, fantasy sports, photography, and pixelated punks are popular categories for NFT marketplaces. While many NFT marketplaces allow crypto payment methods, including cryptocurrencies and stable coins, some also take fiat payments to expand their consumer base.
How to build an NFT or web 3.0 marketplace
You may be wondering how to construct the best NFT marketplace of all time now that you’ve learned everything there is to know about NFTs, web 3.0, and blockchain.
Here are some suggestions for developing a marketplace that both buyers and sellers will want to participate in.
1. Do your homework
We mention this in almost every article we write but conduct your market research before you start working on your startup concept.
Consider your target audience, the types of NFTs you intend to offer, and your final purpose. A proof of concept can assist you in identifying potential hazards and determining whether your NFT marketplace concept is realistic.
You’ll also have to select whether you’ll build your marketplace from scratch or use an off-the-shelf solution.
2. Think about your niche.
We’ve discussed the many types of markets available in earlier posts. There are more specialized vertical marketplaces like Etsy and Paintzen and more generalist horizontal marketplaces like Amazon and Taobao.
NFT markets use the same concept as horizontal and vertical marketplaces. Many current NFT marketplaces strive to appeal to everyone; therefore, focusing on a specific target group or type of NFT may be more successful.
You may, for example, specialize in sports-related NFTs or NFTs for gamers.
Examine the market, consider prospective competitors, and identify any gaps in the industry.
3. Hire a Web3 Development Company
NFTs, blockchain, and cryptocurrency can be perplexing if you’re not sure what you’re doing. If you’re not an expert, it’s worth employing someone familiar with the technology who can assist you in making your new marketplace a success. This is especially critical if you’re starting from scratch with your marketplace.
You can either hire a Web3 Development Company or a full-time specialist to join your new startup or hire a consultant or freelancer on a project-by-project basis. Examine which option best suits your company’s goals and budget.
You might even consider providing equity to attract the best and brightest.
If you need money, look for an angel investor or venture capitalist specializing in NFTs and blockchain technologies. They’ll be able to contribute their talents and knowledge to the success of your marketplace.
Learn more about getting investors for your NFT or web 3.0 marketplace.
4. Decide which blockchain to utilize.
You must choose the blockchain technology you wish to utilize to log transactions while creating a marketplace. There are numerous blockchains available, each with its benefits and drawbacks.
Ethereum, EOS, Ripple, and Hyperledger are some of the blockchain platforms available.
Learn more about the blockchain technology that is best for your NFT marketplace.
5. Make your marketplace as simple as feasible to use.
If you’re new to web 3.0 marketplaces, the marketplaces can be perplexing. This means that your marketplace must be simple to navigate.
A slow, unsightly, and difficult-to-navigate website can cost you revenue, but it can also harm your search engine visibility.
After a terrible experience, nearly nine out of ten website users say they are less inclined to return.
When planning and building your NFT marketplace, keep the following in mind
- Make uploading listings as simple and intuitive as feasible for sellers
- Think about how your marketplace will seem on a mobile device
- Create filters to help vendors find NFTs more quickly and efficiently
- Check out which cryptocurrencies clients may purchase;
- Make use of ratings and reviews so that buyers may figure out which suppliers are the greatest.
6. Understand how to deal with your vendors.
Your marketplace’s backbone will be its sellers. After all, you won’t be able to earn if there are no NFTs to sell!
You should promote the most excellent and trustworthy sellers to use your platform. You’ll also want to ensure that all of the NFTs you sell are genuine.
Here are some of the things you should think about:
How tightly controlled will your market be?
You can choose to have tight control over who registers and what is uploaded or take a more relaxed approach.
How are you going to verify sellers?
Several marketplaces include the seller’s wallet address and social media details to confirm their authenticity. Some markets utilize Twitter-style blue ticks to ensure that users are who they claim to be.
What kind of commission will you accept?
You can charge for listings, sales, or a combination of the two using NFT markets. OpenSea, for example, does not charge for listings but takes a 2.5 percent fee on all transactions. Both buyers and sellers pay a 2.5 percent commission to Rarible.
7. Pick your wallet wisely
A wallet, in NFT words, is a location where users may store both their bitcoin and any NFTs they acquire.
While you can develop your custom wallet technology for your marketplace, it is more practical to incorporate one of the existing ones.
It’s critical that the wallet you pick to link to your marketplace be user-friendly, safe, and multi-device compatible. It is also a smart alternative to allow consumers to integrate their wallets with your NFT marketplace. This eliminates the need to sign up for several wallets on numerous marketplaces.
Coinbase, Metamask, and Trust Wallet are among the most popular wallets. Conduct research to determine which option is best for your company’s needs.
Here is the best guide for cost estimation of web 3.0 project, App Cost Calculator.
We hope this post has provided you with helpful information about building an NFT or web 3.0 marketplace.
To summarise:
- Before you begin, conduct customer and market research.
- Choose whether to run a horizontal or vertical marketplace.
- Consider seeking professional assistance;
- Choose which blockchain platform you’ll use to keep track of sales.
- Make sure that your marketplace is simple to navigate.
- Examine your procedures for verifying and managing your sellers.
- Select the wallet (or wallets) used in your marketplace.
- Even though the value of NFT assets has increased dramatically in recent years, only 2% of people have ever purchased or sold one.
This is a perfect moment to consider new startup ideas and make your imprint on the internet 3.0 world.
