The Basics of NFT Marketplace Development -

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The Basics of NFT Marketplace Development

EagleTech July 8, 2021 0 Comments

NFT is a term that you’ll be hearing a lot more of over the next few years. It stands for ‘non-fungible token’. Technically, it allows to uniquely identify and associate the ownership for some assets in the digital world. And it’s a term that has garnered so much interest recently that it was voted Collins’ Dictionary Word of the Year in 2021. So, what is an NFT marketplace and why it’s worth creating one? In this article, we cover the basic principles of NFT marketplace development.

NFT marketplaces allow digital collectors to buy, sell and create their own tokens that represent ownership of unique, tangible and intangible items

– Coindesk.com

An NFT is a digital asset that’s typically unique or rare and has a one-off code by which it can be identified. NFTs have existed since around 2014, but with the rise of cryptocurrencies and digitisation, they’ve become increasingly popular in recent years as a means of buying and selling digital assets. Naturally, the popularity of NFT marketplaces is booming.

Essentially, they’re a digital collectors’ item. According to Forbes, the value of NFT assets traded since 2017 is approximately £123 million, reaching a total of $340.0 million USD in 2020. And it’s a market that’s predicted to grow by a CAGR of 39.6% by 2030.

Non-fungible tokens are based on blockchain technology, and they represent digital assets from artworks to playlists/soundtracks and articles, to in-game objects or assets—such as digital houses.

So, why have they become so popular? Well, while it’s true that anyone can access these digital creations online, what a NFT does is establish and track ownership in a manner that’s completely immutable and infallible, via blockchain networks. And why would that be important to an art collector, for example, when anyone can just download the work anyway? Well, as Forbes puts it, it’s a matter of owning the “digital bragging rights” to a piece being almost as important as owning the piece itself.

But, in order to trade NFTs, a dedicated NFT marketplace is needed. So, for innovative businesses looking to create a NFT marketplace, the future looks bright. NFT marketplaces are digital platforms that allow owners to buy, sell—often at a fixed rate—store, display and create (in some cases) NFT tokens. They’re the Amazons of the virtual world. Since NFT marketplace development requires specific technical skills and expertise, it may be beneficial to enlist the help of a blockchain software development company in order to ensure the success of your platform build.