You can’t deny the fact that after observing the increase in the number of users based on NFT platforms, NFT Marketplaces are undoubtedly something you might have been considering. It doesn’t matter whether you are a crypto enthusiast, a startup, a co-founder, or an existing corporation, an NFT marketplace like OpenSea, NFTproX, Binance NFT, SuperRare, Rarible, etc. must be something captivating your mind.
Well, it must be.
If we consider the revenue in the NFT market, it can reach 1,601.00 million USD in 2023. It is further expected to show an annual growth rate of 18.55% (CAGR 2023-2027). This way it can reach 3,162.00 million USD by 2027. Additionally, the NFT market can witness an increase in the average revenue per user, reaching approximately $114.80 USD in 2023. Furthermore, it is anticipated that this number will surge to 19.31 million users by the year 2027
So if you are planning to build an NFT Marketplace like OpenSea, you hit the right chord. This blog will take you into depth on how to create an NFT marketplace.
OpenSea is the largest decentralized NFT market in the world which was the first to be created and built on the Ethereum blockchain. Whether you want to build your own NFT collections or are looking to buy and trade NFTs, you can easily do so using OpenSea. Although this platform may seem difficult to use, it is essentially a straightforward platform that everyone can utilize without any difficulty.
If we talk about its initial days in 2017, it focused only on Cryptokitties, but with time it widened its scope and brought multiple digital assets into the market like arts, domain names, gaming characters, etc
The site has been hacked multiple times, each time resulting in the theft of NFTs worth thousands of dollars. However, it continues to be the most dependable platform for NFT trading and minting.
You will need an Ethereum wallet in order to interact with and utilize OpenSea because it is built on the Ethereum network. Whether we talk about MetaMask, Coinbase, Trust Wallet, MyEtherWallet, or numerous others, all are supported.
In addition to this, it supports multiple blockchains, like Polygon (MATIC) and Klaytn (KLAY), giving you additional choices besides Ethereum, the primary blockchain. On top of that, stablecoins are one of the more than 200 payment alternatives available.
It is essential to know the major features of OpenSea that help it stand apart from its competitors. Let’s go through some elements that make it unique.
A storefront is a digital exhibitory where NFTs are shown for sale along with relevant details like the owner’s name, the token name, a description, and a price.
Advanced Search Option
When it comes to search, user engagement and retention are significantly more crucial. Now making it simpler to locate NFTs is one of the best ways to achieve this. Using the search filter, users can easily find the NFTs they are looking for.
Seamless Digital Payments
The numerous payment options give customers a variety of choices to select the most practical payment methods as per their needs. An added advantage is, accepting payments in fiat money and cryptocurrencies.
Customers can sort NFTs by price (from highest to lowest) and even by category by using the filter option.
Before diving deep into the development process it is crucial to understand the working of OpenSea. As, without initially understanding its fundamental structure and operational logic, it will be challenging to construct an NFT marketplace.
Here is a concise breakdown of the key operations that make these platforms run, explaining the steps you must take while creating your own NFT marketplace.
Step 1: Registration/Account Creation
Both artists and NFT buyers must register for an account on their preferred NFT marketplace and successfully complete the KYC verification process in order to access the platform.
Step 2: Wallet Integration
Users must create an appropriate wallet after registering, or connect an already-existing wallet that enables the storage of cryptocurrencies and NFTs.
Step 3: NFT Minting
The artist must pay the membership fee in order to have access to the platform’s NFT minting resources as an NFT vendor. When the NFTs are finished, they are put up for sale in the online catalog of the NFT marketplace.
Step 4: Price Selection
Every NFT that is produced should have a price set by the artist; this might be a fixed-price sale or an auction where interested parties place bids.
Step 5: NFT Selection
Visitors to the NFT marketplace peruse the inventory and choose the NFTs they wish to buy, either through an auction or a fixed-price transaction.
Step 6: Payment
The linked cryptocurrency wallet serves as the means for payment transactions, and either an immediate sale or the highest bid is granted upon the conclusion of the auction.
Although OpenSea’s platform’s infrastructure is free, its business model dictates that they keep a part of the transaction price as a service fee. Similar to other NFT markets like Rare, OpenSea’s price structure is equivalent.
One of the good things about OpenSea is that it covers all of the Ethereum gas costs associated with all platform transactions in order to increase the enthusiasm of NFT buyers and sellers to use the platform.
Fee Details of the Service/Minting
For each platform transaction, OpenSea levies a 2.5% service fee, which amounts to $25 for a $1000 transaction.
During its initial days, OpenSea used to provide the bundles feature to help solve problems when the cost of Ethereum gas was more than the cost of an NFT; however, these days OpenSea pays for all Ethereum gas costs.
The one-time fee charged by OpenSea for setting up a user’s account ranges from $70 to $300. In addition to this OpenSea grants access to a user’s NFTs only after charging a cost ranging from $10 to $30.
Contract Approval Fees
Customers who use OpenSea NFT (custom ones) contracts have to pay a one-time approval fee for transaction authorization. One must also have to pay a fee for using the coin for the first time.
Well, when it comes to building an NFT marketplace like OpenSea from scratch it takes professional blockchain developers to do the job. They are skilled at developing and deploying systems that have all the required functions.
Apart from this, the process demands a step-by-step robust procedure in order to complete the project on time. But before re-starting the same, you must be clear with what you really want. You are required to go for a complete survey of your target audience as well as current & future market demands. You can also learn from your competitors to provide the best to your audience.
Once done with the survey here is the step-by-step procedure you can move ahead with.
Wait: Want to take a quick look at how to develop your own NFT marketplace?
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The front exposure through which people will engage with your services is the user interface of your NFT marketplace. Needless to say, it is essential to create an interface that is user-friendly and incorporates multiple functionalities to provide a rich user experience.
Our blockchain developers will use the microservice design, which enables quick processing and offers top-notch transactional security, to suit your essential business objectives.
Undoubtedly, NFT tokens are important. Without the ability to mint NFTs, it is impossible to build an NFT marketplace like OpenSea. To provide complete platform coverage, Blocktunix experts may incorporate the minting capability that supports both ERC 721 and ERC 1155 standards.
To ensure the uniqueness and functionality of NFTs, it is essential to integrate the minting algorithm while also subjecting it to safety testing, implementing end-to-end encryption, and generating domain names.
You are required to be prepared to give your NFT marketplace projects smart contract features during their launching. Due to the decentralized nature of these networks, no external party regulates the transactions. Here smart contracts are utilized to carry them all.
Self-executing algorithms designed by our expert developers ensure the openness and justice of all on-site business dealings.
You must merge the front-end and back-end activities of your NFT marketplace to make it seamless. Our experts can create a straightforward, aesthetically beautiful user interface for your NFT marketplace project, composed of all essential tabs, forms, and menu items. Smooth platform use is guaranteed by our elegant graphical user interfaces.
It’s crucial to provide artists and clients in your marketplace with flexible options because the NFT business is different. You should therefore consider offering both single-mode and multi-mode NFT minting options.
The single-mode minting approach complies with the ERC 721 standard (unique NFTs), but the multi-mode procedure complies with the ERC 1155 standard (NFTs that can be copied).
NFTs ought to be stored securely and utilized only as needed. You can guarantee secure and dependable storage by creating a database for your platform and connecting it to IPFS NFT storage, a global-access database created especially for the requirements of decentralization on the blockchain.
Therefore, it is recommended to employ an NFT marketplace to guarantee both the secure storage and quick recovery of NFTs.
Adequate auditing and testing are essential prerequisites before introducing any blockchain-based product to the market. Since the NFT marketplaces work as decentralized exchanges without authorized middlemen, security and functionality are essential.
Blocktunix experts can perform a complete audit of your NFT marketplace project, verify the logic of the smart contracts, and apply various test cases to make sure it is safeguarded against all known risks and threats.
It’s time to monitor the NFT project’s performance in the real world once it’s ready to go live. Blocktunix auditors keep an eye on the platform’s responsiveness to different query loads, module work quality, and general resilience. Improvements are made based on user feedback and QA findings to get the NFT marketplace ready for the full-scale market launch.
Well, when it comes to the overall development cost of an NFT marketplace like OpenSea, there are a lot of factors to be considered. Some of the major factors that influence the overall NFT marketplace development cost include:
NFT marketplace development cost varies as per the chosen blockchain platform. It means that if you are going with Ethereum or Polkadot, you will have to pay more as compared to TRON, Binance Smart Chain, or HECO.
The more features and complexity you go with, the more time, effort, and expertise it demands which will drastically increase the overall development cost.
Design complexity, customization, compatibility, user texting, etc. will raise the overall development cost.
The size and location of the development team matter a lot as the hourly rate of developers varies per region and location. Moreover, more expert involvement also draws more investment.
Needless to say, more project complexity will demand more resources and time and thus raise the cost.
R&D, Licensing & permits, Compliance with AML and KYC Regulations, Intellectual Property Rights, Data Protection and Privacy Regulations, etc. will affect the development cost.
Security Protocols, Insurance, Compliance with Security Standards, etc. will add to the overall NFT marketplace development cost.
Now comes the million-dollar question, the actual cost.
Well, it is difficult to provide the actual development cost of the NFT Marketplace like OpenSea without having the specific business requirements in hand. To provide a general overview, the cost of developing an NFT marketplace can vary significantly. For a white-label solution, you can expect expenses ranging from approximately $20,000 to $30,000 USD. Conversely, if you opt for a custom solution, your investment may be in the range of $50,000 to $60,000 USD..
Blocktunix is a reputable provider of NFT marketplace development services with extensive expertise in creating and overseeing decentralized solutions. With their expertise in custom NFT marketplace creation, Blocktunix’s team of NFT marketplace professionals can assist you in turning your concept into a highly lucrative marketplace.
We have created NFT business models and markets for both local as well as global clients, thus we are experts in the field. We can provide you the choice between designing a custom NFT marketplace or one that is based on the OpenSea SDK. Moreover, as a way to broaden your income model, we can also assist you in developing NFTs that are unique to your brand.
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