NFTs or “Non-Fungible Tokens” are digital assets identifiable by theirunique codes. The uniqueness of this technology, combined with the promise ofefficient asset exchange, turned NFTs into a global phenomenon in 2021.Celebrities and massive corporations threw their weight behind this excitingnew asset form. As a result, NFTs exploded into the public consciousness overthe past year. A CNBC report highlights that NFT trades spiked to more than $17billion in 2021, growing by an impressive 21000%. The massive trading surge inthis hot new asset signifies a growing demand for suitable marketplaces toexchange them. NFT MarketplaceDevelopment is a vital servicefor capitalizing on this trend and feeding the growth engine. Let's break downall the details of this future-ready service.
Untangling the Nuances ofNFTs
NFTs exist on the blockchain, holding digital data that stands forunique assets. These tokens are non-fungible and are not amenable tolike-for-like exchanges. While currency bills are exchangeable against othercurrency bills of equivalent value, NFTs are distinctive in their identity andvalue. This quality is known as non-fungibility.
NFTs often denote intellectual property like art or music. They canrepresent both digital files and physical items. They turn real-world assetslike real estate into non-interchangeable tokens for ease of storage, exchange,and trading. NFTs allow easy trading of the valuable commodities and intangibleassets they represent. However, an NFT exchange platform is essential forfacilitating these trades.
Why Do NFTs Need SeparateMarketplaces?
NFTs, like cryptocurrencies, exist on the blockchain. Yet, they cannotbe traded on cryptocurrency exchanges where popular crypto coins like Bitcoin,Ethereum, and Ripple are tradeable. Why? This constraint arises because NFTs donot have flat rates for direct fungibility. Each NFT has a unique value. Hence,trading it against another is a complex task. An NFT marketplace development company will play a critical role in addressing this issue. They can designmarketplace apps that navigate the functionality related to NFT trading.
What are the Advantagesof Building an NFT Marketplace?
The NFT exchange platforms exist on the blockchain, drawing on itsbenefits in the following way:
- Decentralization: Blockchain operateslike a distributed ledger, preventing centralized control and corruption. AnNFT marketplace works on the same principle and distributes the informationacross all the nodes.
- Fraud Prevention: The immutability ofblockchain transactions prevents double-spending and fraudulent transactions.
- Security: NFT marketplace developers utilizecryptography features and blockchain consensus norms to ensure secure andtransparent transactions.
How Do Developers CreateNFT Marketplaces?
NFT exchange platformdevelopment entails a series of steps to design and deploy the marketplace. Thedevelopers select a suitable blockchain (Ethereum or Polygon) and design theproject blueprint. They develop the front-end features and execute smartcontracts to make the transactions seamless. Developers also have to establishNFT metadata storage and complete integration steps before final deployment andtesting. All these steps require a strategic plan of action and technicalcompetence for the effective delivery of the project.
If you want to ride the NFT wave and grow in thisspace, reach out to the Seven Bits team today. They will leverage over a decade of experienceto help you build a stellar platform that makes the most of this trend!