NFT Marketplace In Web3: Pay Attention To These Steps

Understanding NFT Marketplace Development In Web3

With exclusive innovations rolled up in sleeves, NFTs are swiftly entering the mainstream and making their way to a variety of businesses and industries all over the world. However, in the world of digitized items, these innovations are next level and encapsulate many practical use cases– offering trust, authenticity, security, and comprehensive ownership. 

From digital to physical assets and collectibles, almost everything is being metamorphosed and converted into NFTs – and that is where their rarity is. For such non-fungible assets, NFT marketplaces have proven to be the heart of digital inventions. Moreover, with the evolution of web3 and the borderless metaverse, these marketplaces have taken a massive leap over society. 

NFT marketplaces serve as a credible space for verifiable sale and issuance of NFTs and furnish a place for artists and creators to sell their creations and showcase their talent safely. With more and more NFTs being minted daily, the total number of NFT marketplaces is also increasing exponentially. On average, NFT sales range from $10 million to a massive $20 million per week. 

Evidently, users and businesses alike are showing their interest in this lucrative industry and have started to build feature-rich NFT marketplaces to facilitate the secure trading of non-fungible tokens. 

In this blog, we will shed some light on the importance and benefits of NFT marketplace development in web3 ecosystems. So, let’s get started.

Must-Have Features For NFT Marketplaces in Web3

NFT marketplaces work on blockchain networks, which are the core and founding principles of web3. However, whenever you are building a futuristic and user-friendly NFT marketplace, it is crucial to add certain features for its ease of use, convenience, and enhanced appeal. The features that you should always focus on are mentioned as follows:

• Engaging storefront
• Search bar
• Seamless NFT listing
• Wallet integration
• Smart filters
• Transaction history
• Traceability
• Interoperability 
• Cross-chain accessibility 

Common Mistakes That You Might Make While Building NFT Marketplaces in Web3

• Improper Smart Contract Architecture

All operational tasks in an NFT marketplace are implemented and executed through a robust smart contract structure in place. They are pivotal for triggering every process that requires proper execution within the platform. Therefore, they play a paramount role in the seamless functioning of NFT marketplaces and this is the reason why smart contracts should always be diligently structured.

Whenever you are architecting an NFT marketplace, pay attention to including the following types of smart contracts:

1. ERC-721 contracts where users can efficiently mint their non-fungible tokens.

2. Controller contracts where users can securely list their NFTs that are already minted for sale.

• Not Following Robust NFT Standards

So far, ERC-721 has emerged to be the most extensively used and prominent NFT standard. Hence, in NFT marketplace development, make sure that it is compliant with ERC-721 standards. For instance, OpenSea is built on Ethereum and follows the proper Ethereum NFT standard – ERC-721, which is also the most widely utilized standard to date.

Also, ensure that NFTs created on your marketplace should also be readily accessible to outside marketplaces. Following robust and proper standards ensures that users can access as well as trade NFTs between other marketplaces that leverage the same standards. 

It is also worth noting that ERC-721 is not the only available standard that can be used for NFT marketplace development. Other blockchain protocols and standards such as Solana can also be incessantly used.

Also Read: Stay Ahead Of The Competition With Music NFT Marketplace Development

• Carrying Out Blockchain Operations Of Users From the Backend

Typically, there are two ways to initiate transactions in any NFT marketplace – from the frontend or the backend. The frontend process inculcates signing and authenticating the transaction by users with their private key stored in their blockchain wallet. On the other hand, the backend process is undertaken by the platform development team working on the backend operations by using their private key. 

We highly recommend not undertaking any blockchain write operations from the backend. Rather, you should always let users pay the gas fees, sign their transactions themselves, and take all the other steps while purchasing NFTs. Enabling users to carry out these tasks gives them independence and allows them to be the sole responsible person for their transactions. Furthermore, performing blockchain write operations from the backend means allowing the development team to own NFTs – it also goes against the true fundamentals of web3 i.e. decentralization.

• Not Implementing NFT Commissions

NFT marketplaces can essentially implement two prominent types of NFT commissions – marketplace commissions and royalty fees. Inculcating these two commission models in your NFT platform can allow you to generate more revenue for your business and related artists, creators, and users in the marketplace.

• Data Retrieval From The Database

Data available on the database of NFT marketplaces is editable and therefore, anyone working on the backend can possibly manipulate it for personal advantages. However, the data stored on a blockchain or distributed digital ledgers are immutable. This means that it can not be deleted or edited – ideal for offering full transparency. As a result, all the data related to non-fungible tokens on your marketplace along with their transactions remain tamper-proof.

Subsequently, you should always record the metadata on the blockchain rather than doing it on the database. Although storing data off-chain might often be cost-effective but it is prone to vulnerability and mishandling. In cases of a system breach, you might not be able to retrieve or restore data.

Here are some of the advantages of storing user data on-chain:

1. Transparency
2. Data privacy
3. High data security
4. Immutability
5. Data stays on the chain without any risk of getting deleted

Looking For NFT Marketplace Development Services in Web3 Ecosystems?

At Oodles Technologies, we offer full-suite web3 and NFT marketplace development solutions to global businesses across a myriad of industries such as real estate, media, entertainment, healthcare, education, eCommerce, gaming, and more. As an established NFT development company, we provide in-depth assistance and guidance to startups, SMEs, and large-scale organizations to overcome complex business challenges with next-gen technologies such as blockchain, metaverse, AI, AR/VR, and edge computing just to name a few. Over the years, we have gained extensive experience and expertise in popular blockchain frameworks for NFT development such as Ethereum, Solana, Theta, Cosmos, Polkadot, MultiChain, IPFS, etc. Our in-house team of seasoned developers enables business owners and entrepreneurs to harness the benefits of building unique non-fungible tokens and marketplaces by furnishing them with an all-inclusive NFT launchpad and business-ready NFT & smart contract services. If you are looking for custom NFT marketplace development solutions or seeking to equip your business with the capabilities of enterprise metaverse ecosystems, feel free to drop us a line. Our experts will get back to you within 24 hours.