When Web3 technology first appeared in the mid-2000s, no one expected such a diverse set of technologies to be combined into a massive environment. Despite the fact that full integration has yet to be achieved, the surprising opinion has been proven wrong by massive growth in the last decade. Web3 has evolved as a hub for various applications such as cryptocurrencies, non-fungible tokens (NFTs), decentralized finance (Defi), and other related applications, and blockchains are one of the most important aspects of Web3.
Non-fungible tokens are digital tokens that serve as evidence of asset ownership and legitimacy. Marketplaces, games, and launchpads are the most popular NFT-based applications, with marketplaces being the most valuable. In recent years, the crypto community has aspired to hard-core decentralization, and a few NFT marketplaces have implemented such protocols. This article demonstrates how NFT marketplaces can benefit from community-based decentralization techniques.
What exactly does a web 3.0 marketplace entail?
On an NFT marketplace, people can buy, sell, and trade NFT-based items. Both generic and specialty NFT products can be sold in these markets. Popular categories for NFT marketplaces include art, music, film, game, fantasy sports, photography, and pixelated punks. While many NFT marketplaces accept crypto payment methods such as cryptocurrencies and stable coins, others accept fiat payments to broaden their customer base.
How to Create a Web 3.0 or NFT Marketplace
Now that you’ve learned everything there is to know about NFTs, web 3.0, and blockchain, you might be wondering how to build the best NFT marketplace of all time.
Here are some ideas for creating a marketplace that buyers and sellers will want to be a part of.
1. Complete your homework
We say it almost every time we write an article, but do your market research before you start working on your startup idea.
Consider your target market, the types of NFTs you plan to sell, and your ultimate goal. A proof of concept can help you spot potential pitfalls and assess whether your NFT marketplace concept is feasible.
You’ll also need to decide whether you’ll build your marketplace from the ground up or use a ready-made solution.
2. Consider your niche
In previous posts, we’ve discussed the various types of markets that are available. Etsy and Paintzen are more specialized vertical marketplaces, while Amazon and Taobao are more generalist horizontal marketplaces.
Horizontal and vertical marketplaces both use the same concept as NFT markets. Because many current NFT marketplaces aim to appeal to everyone, focusing on a specific target group or type of NFT may be more successful.
For example, you can focus on sports-related NFTs or NFTs for gamers.
Examine the market, think about potential competitors, and look for any industry gaps.
3. Engage the services of a web3 development firm
If you don’t know what you’re doing, NFTs, blockchain, and cryptocurrency can be confusing. If you’re not an expert, it’s a good idea to hire someone who is familiar with the technology and can help you launch a successful new marketplace. This is especially important if you’re building your marketplace from the ground up.
You can either hire a full-time Web3 Development Company or a consultant or freelancer on a project-by-project basis to join your new startup, or you can hire a consultant or freelancer on a project-by-project basis. Examine which option best meets the goals and budget of your company.
To attract the best and brightest, you might even consider offering equity.
Look for an angel investor or venture capitalist who specializes in NFTs and blockchain technologies if you need money. They’ll be able to contribute their skills and knowledge to your marketplace’s success.
Find out how to raise funds for your NFT or web 3.0 marketplace.
4. Decide which blockchain to utilize.
When creating a marketplace, you must decide which blockchain technology you want to use to log transactions. There are a variety of blockchains available, each with its own set of advantages and disadvantages.
Some of the blockchain platforms available are Ethereum, EOS, Ripple, and Hyperledger.
Find out which blockchain technology is right for your NFT marketplace.
5. Make your marketplace as user-friendly as possible.
The marketplaces can be perplexing if you’re new to web 3.0 marketplaces. This implies that your marketplace should be easy to use.
A slow, unattractive, and difficult-to-navigate website not only costs you money, but it also hurts your search engine rankings.
Nearly nine out of ten website users say they are less likely to return after a bad experience.
Keep the following in mind as you plan and build your NFT marketplace:
- Make it as simple and intuitive as possible for sellers to upload listings.
- Consider how your marketplace will appear on a smartphone.
- Create filters to assist vendors in more quickly and efficiently locating NFTs.
- Check out which cryptocurrencies your customers can buy;
- Use ratings and reviews to help customers determine which suppliers are the best.
6. Know how to deal with your suppliers.
The sellers will be the backbone of your marketplace. After all, if there are no NFTs to sell, you won’t be able to earn!
You should encourage the best and most reliable sellers to use your platform. You’ll also want to make sure that every NFT you sell is genuine.
Here are some of the things to consider:
How tightly will your market be regulated?
You can choose to be strict about who registers and what is uploaded, or you can be more lenient.
How will you check sellers’ credentials?
To verify the seller’s authenticity, several marketplaces include the seller’s wallet address and social media profiles. To ensure that users are who they say they are, some markets use Twitter-style blue ticks.
How much of a commission are you willing to take?
NFT markets allow you to charge for listings, sales, or a mix of the two. For example, OpenSea does not charge for listings but does charge a 2.5 percent transaction fee. A 2.5 percent commission is paid to Rarible by both buyers and sellers.
Use caution when choosing your wallet.
In NFT terms, a wallet is a place where users can keep their bitcoin as well as any NFTs they obtain.
While you can create your own custom wallet technology for your marketplace, it is more practical to use one that is already available.
It’s critical that the wallet you choose to connect to your marketplace is user-friendly, secure, and compatible with multiple devices. Allowing customers to link their wallets to your NFT marketplace is also a smart option. It is no longer necessary to register for multiple wallets on different marketplaces.
The most popular wallets include Coinbase, Metamask, and Trust Wallet. Research which option is best for your company’s needs.
How will you check sellers’ credentials?
To verify the seller’s authenticity, several marketplaces include the seller’s wallet address and social media profiles. To ensure that users are who they say they are, some markets use Twitter-style blue ticks.
How much of a commission are you willing to take?
NFT markets allow you to charge for listings, sales, or a mix of the two. For example, OpenSea does not charge for listings but does charge a 2.5 percent transaction fee. A 2.5 percent commission is paid to Rarible by both buyers and sellers.
Use caution when choosing your wallet.
In NFT terms, a wallet is a place where users can keep their bitcoin as well as any NFTs they obtain.
While you can create your own custom wallet technology for your marketplace, it is more practical to use one that is already available.
It’s critical that the wallet you choose to connect to your marketplace is user-friendly, secure, and compatible with multiple devices. Allowing customers to link their wallets to your NFT marketplace is also a smart option. It is no longer necessary to register for multiple wallets on different marketplaces.
The most popular wallets include Coinbase, Metamask, and Trust Wallet. Research which option is best for your company’s needs.
