Why Choose NFT Marketplace Development on Ethereum Blockchain

Published by : Mudit | Aug-02-2022

NFT marketplace development on Ethereum

  • In this blog, we go into details necessary for developing a market-leading NFT (non-fungible tokens) marketplace. We analyze why decision-makers should consider Ethereum blockchain development services for building an NFT marketplace. 

    What is an NFT Marketplace?

    An NFT marketplace refers to a website or a mobile application that enables users to buy, sell, trade, and auction a variety of NFTs. Essentially, An NFT is a digital token on blockchain that signifies the ownership and uniqueness of a non-fungible digital item. Both marketplaces and NFTs utilize blockchain technology. It is because of its attributes that it offers to the growing industry, including traceability, verifiable ownership, security, and transparency. 

    Since the NFT boom, NFT marketplaces have come a long way. Now, they facilitate users to trade NFTs of a wide range, including Multiverse NFTs, Sports, Gaming, Art, Music NFTs, and many others. Also, they enable global creators to list their NFTs, primarily works of digital arts, for trading.

    Additionally, bidders from all around the world can participate in the auctioning of these digital assets on an NFT marketplace and purchase NFTs. Users can buy these NFTs on an NFT Marketplace with credit cards or cryptocurrencies.

    Also, Read | Utility NFT (Non-Fungible Tokens) | Moving Beyond Digital Collectibles

    Essential Components of an NFT marketplace

    Blockchain Technology 

    A distributed database that keeps track of NFT transaction data. Fundamentally, these are decentralized ledgers for storing unchangeable data.

    Smart Contract Solution

    A smart contract assigns a distinctive identifier to an NFT. Currently, the most preferred is the ERC-721 standard for developing non-fungible tokens. 

    IPFS (Interplanetary File System) Integration

    It is a blockchain data storage system that consumes less energy for storing digital content.

    A User-intuitive Marketplace Application

    An NFT marketplace should be easy to explore and make it easier for users to sell and buy NFTs. Both the client-side and the server-side must exist.

    A Digital Wallet

    Users must be able to store and use digital currency in secure digital wallets.  

    Metadata 

    It digitally describes a digital item offered as an NFT and contains information, such as NFT’s name, creation date, owners, attributes, etc.

    Also, Read | Advanced NFT Marketplace Development on  Blockchain

    Why Choose Ethereum for  NFT MarketplaceDevelopment?

    Creators can sell their NFTs on marketplaces and receive royalties, while all other users can purchase, store, and resell NFTs. All transactions on marketplaces are recorded on the relevant blockchains. 

    NFT marketplaces built on Ethereum enable users to effortlessly trade NFT.  It is because ERC-721 and ERC-1155 are the two main token standards for NFT and NFT marketplace development on Ethereum. The ERC-721 standard, which is now the most popular, efficiently establishes the minimal data—such as ownership information and security—necessary for network transactions. With ERC-1155, creation and storage are less expensive.

    One of the first blockchains for NFT development was Ethereum. Indeed, the first Ethereum-based NFT collections, CryptoPunks and CryptoKitties, both from 2017, were the ones that popularised NFTs and grew the market. NFTs originally debuted on Ethereum in 2015–2016.

    As a matter of fact,  major marketplaces for several NFT collections, games, or metaverse initiatives run on Ethereum-based marketplaces. Examples include the marketplaces like CryptoPunks, Decentraland, and Axie Infinity. Other online markets also provide consumers with NFTs in all niches, such as collectibles, art, sports, metaverse, gaming, etc.

    Also, Read | A Quick Guide to Ethereum ERC Token Standards

    Why is Ethereum the Blockchain that the NFT Marketplace should use?

    Some of the most well-known NFT marketplaces, including Opensea, Rarible, and Larva Lab, run on Ethereum. Now, let’s discover the benefits of creating NFT marketplaces on Ethereum, such as Opensea and others.

    Secure and Discreet Transactions

    Ethereum enables the development of secure transaction layer private consortiums. In such consortia, the confidential information is encrypted and never broadcast to users of ConsenSys Quorum. Thus, it manages the NFT NFT market more efficiently.

    High-Performance

    In comparison to the open mainnet, consortium networks perform significantly better. Depending on the network configuration, it is capable of 100 TPS. Consortiums more importantly ensure smooth operation of Proof of Authority consensus, programmable block time, and gas limits.

    Distributed Data Management

    Data is distributed through a decentralized design to foster trust. Hence, it does away with a user’s reliance on a central organization to run a system and carry out transactions. Subsequently, the Ethereum market can operate more quickly and effectively.

    Fast and Secure Deployment

    Once a dapp is live on the platform, it is made available to all network nodes. Further, they are able to quickly manage transactions such as exchange, mining, and storage on Ethereum. 

    Public but Permissioned Networks

    Through the open-source protocol layer ConsenSys Quorum, businesses can create their setup on a public Ethereum network. They will be better able to satisfy upcoming security and regulatory needs. This benefits the marketplace significantly. They can operate transparently and avoid unneeded regulatory restrictions.

    Growing Scalability

    The Ethereum mainnet is a clear example of a network operating with several nodes and millions of users, in contrast to other blockchain networks that operate on a small number of nodes with no room for future expansions. Scalability-wise, Ethereum is the best option for expanding NFT marketplace projects.

    Also, Read | Ethereum Smart Contract Development | Discovering the Potential

    Technology Required for NFT Marketplace Development

    Ethereum

    The blockchain with the highest adoption rate for NFT markets. It keeps track of the NFT IDs and links them to the associated digital assets.

    Gas station ETH

    A facility for information on the transaction costs for Ethereum.

    Golang

    A programming language used for the NFT marketplace’s back-end development.

    Solidity

    It is a smart contract programming language.

    LevelDB

    It is a database for quick access to the blockchain.

    AWS S3

    It is a cloud database that offers several storage types for various data quantities.

    Web3.js

    It is a crucial JavaScript library for establishing connections to the Ethereum network.

    Truffle

    It is used for evaluation and rolling out customized dApps and Ethereum smart contracts.

    Ganache

    It is used in conjunction with nearby test nodes to validate the implementation and communication of smart contracts.

    Node.js

    It is a program that natively runs backend or Java apps on Ethereum.

    React.js

    It is a front-end development language that is open-source and free.

    Metamask

    It is a digital currency wallet for trading Ethereum tokens. Keys for the cryptocurrency Ethereum are also kept there.

    Additional Services

    CoinMarketCap

    It is a service that keeps track of cryptocurrency prices.

    Infura.io

    It gives access to the Ethereum blockchain through a service.

    Selecting the Best Partner for Ethereum Blockchain Development

    Connect with our Ethereum blockchain experts for professional advice and development services. At Oodles, we provide smooth and efficient NFT marketplace development on the Ethereum network.

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