Introduction
Nonfungible tokens or NFT as they are commonly known have become a buzzword not only for crypto enthusiasts but also for artists and investors. It has become one of the most lucrative territories to invest in the blockchain space. What made them famous and what makes it easy for you to enter this territory of profitability? Let us find out.
What is NFT?
To understand the implications of the NFT, we will need to know what the NFT is all about. As the name implies, the NFT is a crypto token built with special token standards that render the token indivisible and unique.
This is in stark contrast to the usual Crypto tokens that are designed to be easily broken down and interchangeable. It might come out on the surface, look like the antithesis of what blockchain technology is supposed to enable. However, creating such a token that is unique and preserves its integrity has special purposes.
Understanding Fungibility
Before we jump into the different manifestations and benefits of the NFT, we need to understand why an NFT is referred to as ‘nonfungible’, and for this, we will need to address the concept of fungibility.
Fungibility is the virtue of an asset by which it can be broken down into smaller components without changing in value, and can be exchanged for another similar asset while still preserving its value. The best example of a fungible asset is the dollar bill. If you have a $100 bill, you can exchange it for another $100 bill without any hassle. You can’t even break it down into 10 different bills of $10 each. There is no change in value and the transaction can easily be carried out.
A nonfungible exit, on the other hand, cannot be that easily interchanged. Any collectible painting can be considered a non-fungible asset. You could probably have a Mona Lisa wallpaper on your mobile phone, but it is never going to be equal either in its originality or value to the masterpiece created by Leonardo da Vinci that hangs at the Louvre Museum right now!
Who All Does NFT benefit?
Simply put, the NFT addresses one of the biggest drawbacks that the digital space had with respect to creations. It was always almost impossible to trace the original creator. This served as a deterrent for small artists and music creators because they always had a fear that their creations would be stolen without them getting their credit.
When NFTs arrived, they knew it was a game-changer. Artists could now sell their original artwork as an NFT to a collector, and we have seen some of the world-renowned crypto artists sell their work for a staggering $69 million. The same applies to music creators. There might be any number of copies of the same artwork or the music, but it is always possible to trace the original owner, thanks to the immutable record-keeping capacity of blockchain technology.
What we have talked about is just the tip of the iceberg when it comes to NFT and its benefits. NFTs have fueled the creation of digital replicas of classic art, and have even fueled the proliferation of virtual real estate. It also has the potential to be used as a record for claiming ownership, especially over vanity real estate.
To sum it all up, NFTs, while retaining the versatility of the digital world, also bring in an easy mechanism to establish authenticity and uniqueness.
The Relevance of an NFT Marketplace
The NFT marketplace is to the word of NFTs as to what content management system laws for the world of websites. There was a point in time when building a website required intense coding knowledge and activity. However, when CMS came in, it became easy even for the technically uninitiated to create their own website!
Similarly, creating an NFT requires some technical knowledge, although blockchain experts might find them to be easy. However, since the NFTs focus on artists, creators, and people who are responsible for unique assets, it has to be easy for them to use. This responsibility was adequately fulfilled by NFT marketplaces.
NFT marketplaces have played the role of Prometheus in bringing blockchain technology to artists and creators. With NFT marketplace platforms, any artist can create their own NFT on the marketplace and have their art listed for selling.
The Key Features
The marketplace platform should abound with features that make it easy for both the creator and the consumer to execute the intended action without any hassle.
- The Interface of the Store
The interface of the marketplace is the first thing that meets the eye of the consumer. The interface should be designed in an intuitive way, and it should show a thumbnail of the creation in a way that is adequate enough to arouse the curiosity of the consumer. At the same time, it also should not compromise on the number of items for sale that are shown on the standard screen.
The interface should be optimized for all types of screen sizes and should take into consideration the intuitive moves of the consumer.
- Search & Filtering Options
In the clutter of the listings, the consumer should be able to easily search and filter out the items that they want to buy. It can be filtered either by keywords or tags for the artist or the focal point of art or the type of creation.
The filtering should be made available by the date last listed, the increasing or decreasing order of prices, and auctions versus direct buying. It is to be remembered that the easier it is for the platform to convince a consumer, the better profit it makes.
- Listings for Creators
Just like how the interface should be congenial for consumers, you should also be easy for creators to create their listing. They should be able to upload that art, create a token, name the art, set a price, and choose whether it goes for auction or it gets listed for direct buying. Although this step might seem simple, meticulous research has to go in before the creator chooses the price and the kind of listing that they would want to put their creation in.
- Buying an NFT
Buying the NFT should be a breeze for both the creator and the consumers. The consumer should be able to make a quick payment from their cryptocurrency wallet attached to the marketplace. The creator should quickly be able to make a profit from the sale after the platform takes its commission for facilitating the transaction.
- Crypto Wallet
As you may have understood, the crypto wallet is a crucial component of the NFT marketplace ecosystem. The wallet should be highly secure, and it should be able to handle multiple crypto coins. It is to be remembered that the NFT marketplace, very much like a cryptocurrency exchange, has a certain degree of centralization and an inevitable outcome of centralization is the attenuation in the magnitude of security. Therefore, your crypto wallet should be guarded by simple yet effective strategies like two-factor authentication and multi-signature login.
- Reviews & Ratings
The reviews and ratings play an important role in encouraging creators and directing customers to the right kind of creators. The creator should be rated based on the kind of art, the intricacies that go into creating it, the conceptual strength behind it, and the value for money that they bring along with the art. The creator should also be able to rate the customer based on their experience of transacting and interacting with them.
Why Go for NFT Marketplace Development?
Maybe in the lines spoken above, the commission taken by the NFT marketplace might have been insignificant. However, considering how popular NFTs are and how they have been catching up, these commissions form an important component of the NFT marketplace profit spectrum. It is probably one of the most lucrative ideas because of the popularity of NFTs that does not seem to feed at least for the next few years.
While an NFT art marketplace is one among the many ideas, you can create NFT marketplaces for any kind of creation including but not limited to music, dance/choreography, and even indigenous/rural art. In all of this, the first step would be, for any crypto entrepreneur who is interested in this line of profit, to create an NFT marketplace.
Conclusion
The first and one of the most crucial things that you need to do in this endeavour is to approach an NFT marketplace development company to get started with your NFT. The availability of white label solutions makes it easier and faster for you to get started with your NFT marketplace. The time is right for NFTs and if you would like to get started, the time is right now!
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