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NFTs or non-fungible tokens are certainly meant to say, especially after proving their ability to protect the ownership and offer end-to-end transparency and immutability to the asset owner. With zero interchangeability, these digital tokens act as an undeniable source of truth about the control and ownership of a real-world or a digital asset, like a piece of art, property land, equity, and many more. Created through autonomous smart contracts, NFTs can be purchased or sold like other crypto tokens but can’t be changed into another form. Also, they allow the transfer of ownership from one party to another with ease. As a result, they play a significant role in preventing forgery, counterfeiting, and fraud actions on the decentralized platform.
Given the growing popularity of NFTs, it’s evident that many businesses are willing to launch their marketplaces. However, having so many options in hand might create an overwhelming state of mind, hindering the decision-making ability. Besides, aligning with a random NFT marketplace development company will not do any good, especially since there is a lot at stake. So, before you even look into the options, it’s crucial you acknowledge the benefits of hiring only a credible and reliable NFT marketplace development agency for the next big project. Having said that, we have illustrated the major ways in which the development agency can add more value to your project idea of an NFT marketplace.
NFT Marketplace: A Brief Introduction
Whether it’s a regular crypto token or real money, you need a proper marketplace for trading, selling, or buying the assets. Similarly, when it comes to non-fungible tokens, a specialized platform is required that allows the owners to buy, sell, or trade NFTs. It also allows asset owners to generate new NFTs using smart contracts that execute themselves automatically based on pre-defined conditions and governance rules. The marketplace can solely allow you to trade or work with NFTs and also with other cryptocurrencies, depending on the compatibility and security rules. It is important to note here that every NFT marketplace is backed by the blockchain and is a part of the DeFi ecosystem.
Types of NFT Marketplaces
There are three major types of NFT marketplaces depending upon the controlling authority and the parties having the superiority. These are:
1. Custodial: In this marketplace, the administrative body will have control over the NFTs of other users by having a holding over their keys. They are allowed to freeze a transaction at any given time once they sense a fraudulent action.
2. Auction: As the name implies, these marketplaces are concerned with auctioning assets through NFTs. The tokens are assembled centrally and then sold to the bidders. Fees are collected in the form of successful bids and the transfer of ownership.
3. Non-custodial: Here, the users will have the authority to hold and control their private keys, thereby ensuring no administrative body has the right to take action on the transactions. No special license is needed to operate such a marketplace.
Apart from these three categories, the NFT marketplaces can also be divided into two other categories depending on the tokens’ traits.
1. Universal: As the name suggests, such platforms will allow trading, purchasing, or selling of almost all the NFTs existing in the DeFi ecosystem. There won’t be any special requirement or restriction on the type of token to be operated.
2. Specialized: These marketplaces are dedicated to a single NFT type and are usually under the authoritative control of a single body. The tokens represent ownership of a similar asset type, like NBA accessories, art collectibles, and many more.
Benefits of Hiring an NFT Marketplace Development Company
Now that we have discussed the basics of the NFT marketplace along with its categorization, it’s time to move on to the main highlight of this discussion. Understanding the benefits of collaborating with an NFT marketplace development company is crucial for correct decision-making and ensuring no further conflict arises once the project commences. Hence, we have structured a detailed illustration, explaining how the agency can bring more value to your business.
1. Industry Expertise
NFT marketplaces might sound to be regular platforms where these tokens can be traded, sold, or purchased just like other platforms in the DeFi ecosystem. However, that’s not the case! Every NFT marketplace comes with a specific list of features and functionalities that need to be developed meticulously for efficient performance and productivity. Besides, the underlying architecture and technicalities are quite complex and need a professional’s interference. This is where a reliable NFT marketplace development agency will come into the picture. Thanks to their years of industry expertise, they can aid in ideation, integrate market trends, and develop a user-friendly, interactive, and secured platform for trading NFTs.
2. Efficient Project Progress
With a professional development partner working on the project, you won’t have to worry about its efficiency and progress rate. From ideation and planning to ongoing support and maintenance, the experts will handle all the aspects of the NFT marketplace development project. Besides, they will also work on mitigating the probable risks that could hamper the security or performance of the platform post-launch. Usually, an experienced development agency will adopt an agile methodology for the project, ensuring a faster time to market, reduced failures, and minimal software downtime.
3. Tailored Marketplace Creation
If the NFT marketplace developed doesn’t cater to your business needs, the entire investment will go down the drain. Although there are several low-code development software you can use to complete the project by yourself, the features and technical specifications will be out of the shelf. The scalability and flexibility of the platform will also take a hit, thereby making it difficult for you to deploy any on-the-go change. That’s why working with a professional NFT marketplace development agency is the most feasible decision. Not only will the experts provide tailored solutions to meet your needs but will also work on branding and creating a relevant story with which your target audience can easily connect.
4. Enhanced Security Implementation
Since NFT marketplaces do not adhere to the rules and regulations of the centralized trade markets, every marketplace owner needs to administer high-end security and governance protocols. Only then it will become easier to prevent anonymous transactions which are mostly related to fraudulent activities and counterfeit identities. To do so, you need a reputable and reliable NFT marketplace development company that is well aware of the security requirements of the DeFi ecosystem. Whether it’s implementing cryptographic logic to secure the smart contracts generating new NFTs or integrating end-to-end military-grade encryption for absolute transaction record immutability, the professionals must focus on privacy and security details at a granular level.
5. Focus on Innovation and Agility
Also, you can benefit from the innovative thinking of the NFT marketplace development agency and leverage the same to add more value to your project. These experts are aware of the best industry practices for developing and designing marketplaces for non-fungible tokens and the recent trends that are prevalent in the DeFi realm. Hence, they can easily make plans to integrate these trends and ensure the developed marketplace can meet customer expectations and offer an omnichannel user experience with ease.
6. Cost-Effective Approach
Truth be told, handling the NFT marketplace development project by yourself is a cost-consuming task. From recruiting skilled professionals to training them, there are a lot of areas where you will have to make significant investments. But with a professional NFT marketplace development partner, you do not need to worry about increasing expenses. All you have to do is pay an upfront amount for project commencement and then slowly complete the payments as the project progresses. There’s no need to acquire any special license or purchase tools and software applications needed for developing the NFT marketplace.
7. Adherence to Regulations and Standards
Lastly, a reliable and trustworthy NFT marketplace development agency will always adhere to the regulations and standards necessary for legal structuring. With them, you won’t have to worry about encountering any lawsuit or being sued for supporting fraudulent activities. Although NFTs function on the decentralized module, the marketplaces should adhere to certain governance and security protocols. And a professional development partner will ensure your marketplace is compliant with all these standards with ease.
Conclusion
Now that we have discussed the benefits of hiring a reliable and reputable NFT marketplace development company for your big project, you should start shortlisting the names that meet your criteria. Experience, market awareness, packages, technology stack, and several other variables will influence the aptness of your choice. But in the end, you should ensure the chosen development partner caters to your business needs and can add more value to your project’s goals.
