NFT Marketplace Development – A trending business for crypto entrepreneurs

NFT Marketplace Development
NFTs have set an unshakable benchmark in the Web3 space. NFT’s massive sales in 2021 transformed the NFT market into a billion-dollar worth sensation.
Countless business tycoons, top celebrities, digital artists, creators, and even ambitious entrepreneurs are keen to join the NFT trend to make massive profits in the days to come.
That way, NFT marketplace development seems to be one of the most promising business models that have caught their attention.
This blog focuses on distinguishing two promising blockchains – Ethereum and Cardano and will explain in detail which one of them is suitable for developing an NFT marketplace.
A brief outlook of the NFT marketplace
An NFT is a tokenized version of a digital asset representing and verifying ownership of any digital asset. Since NFTs are a form of digital assets, they require a dedicated digital forum where all NFT trading occurs.
Such a platform is termed an NFT marketplace, and famous blockchain networks like Ethereum, Binance, Cardano, etc., offer an open blockchain ecosystem to develop an NFT marketplace platform.
A wide range of items is traded in an NFT marketplace, including artworks, images, in-game assets, music, physical assets, and even a plot in the metaverse. Payments on these platforms are usually made via cryptocurrencies, crypto stablecoins, and fiat currencies.
These platforms are either based on selling generic NFTs or niche NFTs. OpenSea and Rarible are two great examples of NFT trading platforms utilized for trading generic NFTs.
On the other hand, Nifty Gateway and SuperRare are examples of trading niche NFTs which mean particular trading kinds of assets.
Since NFT exists on a blockchain, one must first decide on the blockchain system before starting to develop the NFT marketplace.
The majority of the NFT marketplace platforms function on the Ethereum blockchain. But the growing Ethereum fee has now made users seek other blockchains like Cardano, Tezos, and more.
5 factors to locate the right blockchain for NFT marketplace development
Before comparing the Ethereum and Cardano blockchains, one must know how to select the appropriate blockchain. That way, enumerated below are some factors that help you in locating the best blockchain to develop your NFT marketplace platform:
Factor #1 – Transactional speed
Speed is always the main factor of any blockchain or digital platform.
Increased speed with minimal cost is the main motto for an efficient blockchain.
Additionally, it must work under a decentralized ecosystem thus, by considering these factors, choosing the right blockchain becomes an even more easy task.
Factor #2 – Forking
The main attributes distinguishing NFTs from other fungible assets are their scarcity and uniqueness.
The possibilities of forking drive the individualism or uniqueness of NFTs to become low.
In that case, replication of NFTs will disable its unique factor.
Thus, developing an NFT marketplace on a fork-proof blockchain is more recommended.
Factor #3 – Smart contracts
Developing robust smart contacts is essential. It’s not tedious yet needs more attention to give a clear, bug-less, and secure code.
A smart contract is a significant part of a blockchain that secures details with maximum security.
Smart contracts require initial testing before launch to get high performance and the best usability.
Then only users will not distract their attention with worries of any fraudulent activities and other malpractices.
Factor #4 – Budget-friendly solution and token development
Investigating the transaction costs and processes is recommended when assessing the blockchain.
The price for transactions is extremely high in the case of selling artworks that are worth millions and billions.
Due to that, no one can have any unfavorable impact due to high costs. Rather, the microtransactions cost for NFT collectibles, in-game accessories, etc., are high in numbers.
And it’s not reasonable to pay a significant amount for these microtransactions. Bypassing fees or optimizing according to the asset’s nature seems to be a better option.
Factor #5 – Security
Any platform with a PoW consensus mechanism is always vulnerable to attacks and losing control of the network’s computational power.
As a result, the platform will lose access, money, and data. Hence it is better to go for a PoS (proof-of-stake) mechanism.
Ethereum Blockchain Vs. Cardano Blockchain
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Ethereum Blockchain
Ethereum is considered as the most famous blockchain network that has gained the trust of crypto enthusiasts over these years.
The blockchain is available with numerous features and trustworthy token standards. Most NFT creation is based on the interoperability-friendly token specifications ERC-721 and ERC-1155.
Rapid deployment, permissioned networks, network size, scalability, Incentive layer, tokenization, interoperability, open-source, and performance are all advantages of the blockchain network.
Therefore, creating an NFT marketplace on Ethereum will help the platform owner to reach a massive number of audiences in a limited span.
Benefits of developing an NFT marketplace on Ethereum
- NFT trading can be done in a P2P ecosystem, eliminating the need for intermediaries or central authorities to charge more commissions as compensation.
- The decentralized structure makes for better data issuance and enables building trust.
- Rapid distribution as firms can install and assist exchange, storage, and mining processes through the Ethereum blockchain.
- The blockchain network can operate with numerous nodes and millions of users.
- Transactions are private as data is encrypted and never publicized. The details are exchanged only when it is highly required.
- Layer 2 scaling solutions and protocol options currently under development aid in improving the output for Ethereum.
- Licensed networks meet all security and regulatory standards.
- The token info and transaction history are available for confirmation proving that the ownership data is directly available.
- Once the NFT transaction is verified, it is digitally impossible to steal ownership by manipulating data.
Cardano Blockchain
Regularly termed the third-generation blockchain network, Cardano has a two-layer core design called CSL (Cardano Settlement Layer) and CCL (Cardano Computational Layer) that primarily aims to reduce latency.
All transactions are conducted on the Cardano settlement layer, and the Cardano computational layer is used to govern the network and deploy smart contracts.
With the implementation of Proof of Stake (PoS), the Cardano blockchain network becomes environmentally friendly with lower gas costs and speedier transactions.
The 3rd gen blockchain ecosystem’s integration with the launch of an NFT marketplace will illuminate the platform’s successful future.
Benefits of developing NFT marketplace on Cardano
- The increasing congestion on NFT marketplace platforms reduces the system performance, but Cardano blockchain archives high scalability by rectifying data storage issues and bandwidth issues.
- The blockchain’s energy-efficient PoS consensus mechanism provides swift transactions at feasible rates.
- Cardano efficiently maintains the ownership record for Cardano NFTS, which includes history and origin.
- The blockchain uses various techniques like compression, pruning, and partitioning to eradicate data storage issues.
- The blockchain guarantees security across the network by rewarding the takers more for staking to under-saturated pools.
- Cardano’s one main benefit is interoperability. It lets numerous currencies exist side by side and seamlessly move across many chains without complications.
- The blockchain provides high throughput at low transaction charges by attaining high scalability and technology flexible attributes.
- The blockchain completely minimizes the bandwidth requirement of each node. It does this by dividing the main network into numerous subnetworks by using the RINA technique.
Concluding Thoughts
Overall, both Cardano and Ethereum blockchain share a similar count of advantages, and each of them is unique in its way. Currently, Ethereum leads the race due to its huge popularity, but Cardano remains a potential competitor for Ethereum.
You can develop the NFT marketplace on Cardano, Ethereum, or any other blockchain you desire by seeking the guidance of a well-experienced NFT marketplace development company.
A reliable NFT marketplace development company guides you throughout the process with their masterclass tech expertise. But finding the right NFT marketplace developer in the crowded market is not that simple.
To reach out to your desired technology partner, it’s better to take some time and conduct extensive research about such firms.
Once you have finalized your desired NFT marketplace development company, you are all set to enter the NFT ecosystem.