NFT is a digital asset or product that has a digital certificate traceable to ownership of digital assets. Unlike fungible tokens (traditional currency), NFTs cannot be traded directly. They require a dedicated marketplace.
NFT is certainly a pioneer in the digital age. Based on Statista, it is estimated that NFT will be the most popular type of technology in 2019. The NFT market is estimated to reach $8,412 million by 2027. This market has seen many successes because it provides an easy and secure experience for users and business owners around the world.
Different types of NFT marketplace platforms
NFT marketplace platforms mainly consist of two types:
- Peer-to-peer niche marketplaces: These platforms offer specific digital assets, i.e. assets that belong to a specific niche. A good example of a peer-to-peer NFT marketplace is Valuables. It's a marketplace where you can basically buy and sell tweets (hard to imagine, but true). Another example is Glass Factory, where users can buy digital holograms.
- Universal Non-Futurable Token Sites: Universal NFT platforms allow you to sell any digital asset. This can range from digital artworks to domains. We are familiar with the most popular universal NFT platforms: Rarible, OpenSea and Mintable.
What is the cost of setting up an NFT marketplace?
The price of developing an NFT marketplace depends on many factors, such as the scope of the project, the complexity of the features used, the blockchain network, and also the experience and location of the developer. The price of developing an NFT marketplace for e-commerce ranges from $50,000 to $500,000. The price can vary depending on the modifications that companies need for their marketplace to meet the needs of the business.
It is important to remember that NFT is an evolving field and costs can change as new tools and technologies are made available.
However, some of the key cost-related factors to consider are:
1. Development team
The cost of hiring a company or a team of developers to create a marketplace depends on the size of the company, its expertise, and the location of its office. A team hired in an expensive region such as Europe or the United States will cost more than one hired from a less expensive region such as India or Eastern Europe.
2. Blockchain Network
The price of creating the NFT marketplace depends on the blockchain you choose, as different networks have different costs for transactions, gas prices, and development costs. For example, if you want to use the Ethereum network, it may be more expensive than developing on a smaller and less established network.
3. Smart contract development
The cost of developing the smart contract to run the NFT market depends on its complexity and the amount of customization required. A more complicated smart contract with sophisticated features such as royalties and bids is more expensive than a less complex contract.
4. User interface design
The cost of creating an attractive and user-friendly design for a user interface in the NFT market depends on the extent of customization required and the experience of the design team.
5. Legal aspects and compliance
Depending on the location of the market and the rules that apply there, there may be compliance and legal costs to consider, such as obtaining permits or registering with regulatory agencies.
The cost of establishing an NFT market can range from ten thousand to one hundred thousand or even more, depending on the complexity and needs of the project. It is critical to work with a knowledgeable development team and carefully weigh the cost of everything to ensure the project stays within budget.
Contacting one of the leading NFT Marketplace development company can be the first step. Shiv Technolabs will help you create a custom NFT marketplace and turn your business idea into a profitable reality.
We are leaders in the industry because we have developed NFT marketplaces and business models.
Factors that influence the cost of developing an NFT marketplace
Developing such an NFT platform from scratch requires a lot of time, effort, and knowledge in blockchain-based development. NFT development requires integrations to ensure security, which adds to the complexity of the system. Here are some of the key elements that influence the price of developing an NFT platform
1. NFT Tech Stack
NFT Tech Stack The NFT tech stack plays an important role in the cost analysis. The typical tech stack used by NFT developers includes blockchain-based platforms such as Flow, Tazos, Cardano, and Ethereum, as well as storage platforms such as IPFS, Pinata, and FileCoin; NFT standards such as ERC-1155 and ERC-721; and front-end frameworks such as React, Vue, and Angular. The more advanced the technology stack used, the higher the development cost.
2. NFT marketplace niche
NFT Marketplace Niche The NFT marketplace niche you choose can also affect the costs associated with developing your NFT platform. For example, if you are developing a platform for money collectors, the security measures on your platform will be higher than on the open application marketplace. Some of the most common NFT marketplace categories are:
Premium and open marketplaces This is one of the most popular NFT marketplaces, such as OpenSea. However, this type of market has fewer features than closed marketplaces.
Non-Curated and Curated Marketplaces A curated marketplace provides a welcoming environment for artists who are eligible to sell their work, while a non-curated marketplace supports both eligible and non-eligible artists and makes it easier for sellers to sell their work.
Collectibles Marketplace Collectibles Marketplace: This is the ideal market for collectors to buy and sell various NFTs, such as NBA highlights for sports fans.
Games Marketplace: This games market is a popular market for NFTs, especially online games. In this marketplace, players buy, sell, and invest in game platforms to get advanced features and avatars or levels.
3. NFT Development Team
NFT Development Team and Process Outsourcing your NFT development to a variety of blockchain NFT experts who can implement an efficient design and development strategy is essential. It is necessary to have an entire team of designers, developers, and blockchain experts who can work together to build an efficient NFT platform.
4. Maintenance costs
NFT Marketplace Maintenance Costs Maintenance and support costs for an NFT marketplace platform are crucial if you plan to build NFT solutions for the long term. Regular maintenance is essential to keep the platform up to date and secure and free from glitches and errors.
The NFT marketplace could provide important benefits to businesses and organisations due to the explosion of NFT around the world. NFT marketplaces attract customers from around the world because they offer a high level of protection, decentralisation, and the ability to own digital assets.
Knowing the cost of setting up an NFT marketplace makes it easier for businesses to create an efficient platform. In addition, it is important to consider the elements that affect the overall price. It is always advisable to seek the advice of experts before building an NFT marketplace from scratch.