What is NFT Marketplace on blockchain? (Part1)

With the growth of NFTs, the NFT Marketplace is also becoming more popular for most users. So what is NFT Marketplace?

NFT (Non-Fungible Token) is a non-fungible digital asset owned and controlled by a specific individual or organization. NFT makes it easy for creators to give their supporters something rare and unique. You can understand that each NFT artwork represents a different value, and its owners are like collectors.

Because of the popularity and increasing popularity of NFT, it requires a place that allows trading and exchange transactions to take place smoothly. That place is called NFT Marketplace. In the following article, we will learn together in more detail about the concept, characteristics, and how NFT Marketplace works on the blockchain. Do not miss it!

What is NFT Marketplace?

NFT Marketplace is a platform that makes it simple to store, buy, and sell NFTs. These tokens are usually available for purchase or auction at a set price. To use NFT Marketplace, you need a crypto wallet connected to the exchange, to store and trade NFT tokens quickly.

The way NFT Marketplace works is quite simple. Users simply create an account, then upload their own digital art and sell their work on the marketplace.

Basic structure of an NFT Marketplace

The basic structure of an NFT Marketplace usually consists of 2 groups. That are the architecture group and the third-party integration group. Specifically:

The main architectural group includes:

• Marketplace application – It can be a mobile application or a website to support NFT transactions.
• Wallet – A place to store, exchange and send digital assets of users.
• NFT metadata – Includes details related to every NFT token on your platform.
• IPFS (InterPlanetary File System) – A system that helps store data from distributed networks.
• Smart contracts – Technologies that provide unique identification for each NFT.
• Blockchain – Is the foundation on which the NFT Marketplace will be built. Specifically, Blockchain allows to store information about all transactions on the platform.

Read also: NFTs vs Cryptocurrencies: What’s the Difference?

Main features of NFT Marketplace

Storefront

Storefront is the most important element of NFT Marketplace. Here, the interface will display all the necessary information, including offers, detailed description of each NFT, owner, rate and price history.

Advanced token search feature

This feature will be useful when users need to find tokens quickly. Here, you should divide the NFT into subcategories like music, images, videos, etc.

Filter

Filters have the same functionality as advanced token search, but they cover more categories. In particular, this tool will assist users to define NFT based on more things. In more detail, the filter will usually have categories like price, creator, popularity, new offers, etc.

Create a list

Allow users on NFT Marketplace to create listings. This can be a general list or a wish list. It would be helpful if the listing displayed information about NFT, such as the title, tag, price, or a more in-depth description.

List Status

This feature is very important for NFT creators. As a result, they can update other users on the current status of digital works.

Buy and Bid

This is of course an extremely important feature that must be present in the NFT Marketplace platforms. It makes it easy for users to buy and bid on NFTs.

Wallet

It would be helpful if you also integrated the wallet into the NFT Marketplace. As a result, users can pay and manage NFTs without leaving the platform.

Rating

Set up a rating system so that people in the market can see which unique NFT works are worth buying. In particular, this feature will be very helpful for people who are just getting started with cryptocurrencies.

Auction

Auctions are an attractive feature that helps generate traffic for the NFT Marketplace platform.

Benefits of NFT Marketplace on blockchain

Completely transparent

Blockchain technology implies that all NFT transactions are visible in a distributed database. In other words, you can think of it as a book that tells you everything that happens on the market in real time.

Decentralization

NFT Marketplace is a decentralized platform where users can trade assets freely and without depending on third parties.

Exclusivity

Each NFT has a unique digital ID and special features. Furthermore, users can access exclusive assets that are available instantly through the NFT Marketplace.

Liquidity

The demand for cryptocurrencies and NFTs is constantly growing. Because of that, people appreciate decentralization and they are actively investing in digital assets. As a result, there is increased liquidity in the NFT sector.

Authenticity and Sole Ownership

The NFT is a record of ownership that is open to the public and can be checked if needed. So, it is impossible to make a fake NFT.

Conclusion

NFT Marketplace offers a number of benefits to both creators and collectors. For creators, NFT Marketplace provides a way to monetize their digital creations and reach a wider audience. For collectors, NFT Marketplace provides a way to purchase and own unique digital assets.

However, it is important to note that NFT Marketplace is still in its early stages of development and there are some risks associated with investing in NFTs. For example, there have been cases of fraud and scams associated with NFT Marketplace. It is important to do your research and be careful when investing in NFTs. Stay tuned for part 2, where we will discuss the top popular NFT Marketplace platforms today!

Disclaimer: The information in this article is not investment advice from CryptoChill. Overall, cryptocurrencies always carry many financial risks. Therefore, do your own research before making any investment decisions based on this website’s information.