What is the marketplace? It’s where people can exchange things for something else. It’s the fundamental base of trading, and doing business. Since a long time ago people have exchanged goods, and services for money but now we have another choice, it is digital money. In the game industry, it’s called Cryptocurrency, or NFT currency. NFT marketplace opens a new era full of opportunities where entrepreneurs, who have NFT products, and individuals who own a valuation amount of NFT can join in, sell, buy, exchange, and do business with each other. As you can see, the NFT marketplace has opened a new type of business, and support to build another potential industry in the whole economy. However, not many people know about this attractive marketplace, its different types, and how to select one, so in this article we will show you some guidelines to do it.
Let’s learn it from the basics, what ‘s NFT?
NFT or Non-Fungible Tokens are cryptographic assets that are created on blockchain technology, and have unique identification codes and meta-data, which makes them distinguishable, distinct, and completely unique. In fact, even cryptocurrencies are not distinct, since they are identical to one another. This is the reason that they can be traded at equivalency for commercial usage, but not NFT, which are one hundred percent unique.
What Is NFT Marketplace?
NFTs can be traded with other NFTs or sold/bought via the NFT marketplace, which is a decentralized platform. This marketplace is like an eCommerce platform, say Amazon or eBay where different products are listed by sellers, and buyers can buy them. NFT marketplace has numerous different features and types, which makes them quite distinct from eCommerce marketplaces. NFTs or digital assets can be stored, traded, and displayed to a large audience, and a unique business model is evolving. NFT marketplaces are giving rise to the NFT Business Model, where unique non-fungible tokens related to art, video, audio, and other types are bought and sold. And this is bringing in NFT development practices, for creating, launching, and maintaining NFT marketplaces and NFTs. In order to transact at an NFT marketplace, having a crypto wallet is mandatory, because all transactions such as buying, selling, and storing the NFTs will happen via that crypto wallet.
How Big Is The NFT Market?
In one of the biggest events in the NFT world, the right to the first-ever tweet was converted into an NFT, and sold for a record $2.9 million, by Twitter founder Jack Dorsey. As of now, $69 million worth: Beeple's Crypto art is the most expensive NFT to be ever sold. Doge, a popular meme in Japan was sold as an NFT for $4 million, which eventually gave birth to Cryptocurrency Dogecoin. There are around 15,000 to 50,000 NFTs being bought and sold every week, and in the first half of 2021, approximately $2.5 billion worth of NFTs were traded, across the world.The NFT market and business model are exploding at an amazing pace, and this can create an entirely new world of digital assets, never seen or experienced.
How Does NFT Marketplace Work?
Here are the 10 steps that showcase how NFT marketplace works:
The user creates a new account
A Crypto wallet is linked with that account
Users can create NFT on that marketplace
NFT is configured for that marketplace
NFT is listed for selling
The marketplace and NFT listings are moderated
NFTs appear for selling in the marketplace
Bids are placed for that NFT
NFT is sold to the top bidder
The marketplace handles the transaction via a crypto wallet
Behind the scenes, the marketplace creates a blockchain-based contract for every listed NFT, the tokens are added to the unique dataform called metadata, from which, the unique parameters are added to the NFT to make it unique and distinct. A special transaction protocol called smart contracts is used in every NFT marketplace that regulates, monitors, and approves the transactions between the buyer and the seller. Such smart contracts have the unique parameters that are associated with the NFTs, and ensure that the owner of any particular NFT is one and only in this entire Universe!
Different Types Of NFT Marketplaces
Some of the most popular types of NFTs, and their associated marketplaces are:
Digital Collectibles: Examples of NFTs in such a marketplace are game/trade cards, trophies of wins, unique videos of rare gaming moments, which are digitized as a non-fungible token or NFT.
Game Characters: Famous and rare gaming characters can be converted into NFTs, and sold via the marketplace.
Real Estate: Access to high-end, unique, and in-demand properties can be converted into non-fungible tokens.
Music Tokens: Entire music albums or specific songs can be converted into NFTs, and sold directly via special NFT marketplaces.
Investment Projects: In this model, the NFT marketplace can function like a stock market, and allow the users to buy/sell specific NFTs via trading. In some of the advanced and regulated NFT marketplace, such transactions can also have legal validity, like in real estate.
And now, tips for choosing an NFT marketplace
First, remember that an NFT (non-fungible token) simply represents ownership of an asset. Before choosing an NFT marketplace, you'll first want to decide the kind of digital asset you're interested in buying, selling, or creating. Just about anything digital -- the written word, videos, video games, art, collectors items, etc. -- can be tokenized on a blockchain (such as Ethereum (CRYPTO:ETH), the most common blockchain network NFTs are built on), so narrowing down your interest is a good place to start.
Another consideration is the type of tokens supported on a marketplace. Some support a wide variety of tokens. Others are closed marketplaces and utilize a specific proprietary token. When opening an NFT marketplace account, be sure to fund your blockchain wallet with the right crypto or token required to participate in the site's activity. You'll be prompted to link your wallet to the NFT marketplace once you've opened up an account. Also check to see what kind of security the marketplace has in force, and if it has had any issues in the past.