NFTs are the new digital sensation in town. The buzz on NFTs has taken over after the artworks of artists minted to NFTs have been sold for monumental prices in recent times. If you are here, then it is explicit that you also went through some of that news and couldn’t control your anxiety to know more about it. Nearly 27 renowned NFT marketplaces have been launched already, each targeting a divergent audience, artists, gamers, collectors, virtual enthusiasts, and more. The volume of amounts revolving around these marketplaces is also gargantuan.
Non-fungible.com, a website that tracks different marketplaces, quoted that 5 million unique NFTs have been sold for nearly $150 million. The estimated total value of crypto artworks according to cryptoart.io/data reveals it has crossed $100 million. Although you may find that these numbers are very small when compared to the real-world art business, the collectors have begun to take notice of the digital marketplaces as art galleries all around the world are closed.
Other than this, recently, the artwork of an artist who goes by the name Beeple was sold for $69 million in Christie’s online auction. This sale broke the Internet and made everyone look into the NFT space with more curiosity. Other than this, many artworks have also been sold for record-breaking prices. All these series of incidents have made NFTs undebatable in the future of the art world and NFT marketplace development a prominent business to look into.
What are NFTs?
A non-fungible token is unique data stored in a digital ledger. These tokens are created following the ERC-721 or ERC-1155 regulations. Each NFT represents a unique asset like artwork, collectible, virtual property, and more. The striking features of NFTs include inseparable, non-interoperability, and cannot be duplicated. They are also very transparent that anyone can check the ownership details of the particular NFT. All these characteristics have made NFTs one of a kind, along with the security provided with blockchain technology; it is unstoppable.
What are NFT Marketplaces?
An NFT marketplace is a platform to buy, sell, and store NFTs. Unlike cryptocurrencies, an NFT cannot be traded for another or converted to fiat currencies just like that. An NFT needs a marketplace to be enlisted for sales and purchased by another person for a certain price. It can either be sold for a fixed price or can be sold in an auction. It is more like an ecommerce, but instead of products, it is digital assets, and payments ought to be made using crypto coins. Most NFT marketplaces require a crypto wallet like Metamask to support transactions.
Why Should You Develop an NFT Marketplace For Artists?
NFTs are a form of cryptocurrency that cannot be exchanged for another currency. It is unique; this uniqueness has made it exclusive, and owning one a pride. In the earlier days, an artist would create art and sell it to a collector with the assistance of an intermediate person. The artist gets a percentage of the sale, and after it is sold, he/she loses the ownership and never gets any money out of it.
With the NFT marketplace for artists and creators, things are different. An artist creates art and showcases it in an NFT marketplace for sale. Any collector who is interested in the artwork approaches the artist with a price he/she wishes to pay for it. If the artist is ok with the price, the deal is made, and the art is sold. The arts can also be sold by auctions.
While a sale is made, the artist gets the majority share of the amount, and the marketplace gets the remaining. Now, when the same art is sold again by the collector to another person, the artist again gets an amount of it, although a small percentage. This is more like royalty. The artist gets paid every time the art is sold. This helps artists strive, and great arts flourish.
The art market is always a luxury market, either in the real world or in the virtual world, which indicates that the volume of turnover is huge. A small commission on each sale itself can turn out to be a monumental amount. Why be hesitant to venture into something that can support artists and at the same time fill your pockets and not to mention the futuristic business model and the security offered by blockchain technology.
Pivotal Features To Be Looked Upon To Launch A NFT Marketplace
An NFT marketplace has some must-have features, and let us have a look at them.
As a marketplace, it must have a storefront to enlist various artworks created by different artists along with details of those artworks.
2.A Search Bar
A user can search for an artist or an artwork instantly by using the search bar instead of scrolling through the storefront.
An NFT marketplace must have a feature for the artists to create digital artworks. Thereby while showcasing in the storefront, the artists should be able to create collections or single pieces of art for sale.
4.Buying and Auction
This is an integral feature of a marketplace. Therefore it must be easier for the user to buy or bid for art in an auction.
In order to buy an NFT, the user must have a crypto wallet like Metamask for themselves. It allows them to send, receive and store crypto coins.
Well-Renowned NFT Marketplaces
Keep yourself informed on some of the well-renowned NFT marketplaces that are doing wonders in the crypto market.
These are some of the NFT marketplaces for creators. You can also check on them and launch a white-label NFT marketplace similar to them. This could help save time than building an app from scratch.
The data, predictions and the volume of transactions around NFTs, along with their unique features, reassures us that it is one of the futuristic luxury businesses. As it is at its blooming stage, launching one for yourself can put you in a race with fewer competitors and, in the long run, make you one of the big players easily. The virtual world and virtual arts are the future, and as an entrepreneur coming up with ideas of the future will guarantee your success. Do your research and plunge into this market soon to reap the maximum benefits of it.