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- What is a non-fungible NFT token?
The NFT non-fungible token is a type of cryptographic token based on blockchain technology, its advantage is its uniqueness. These can be either digital assets or token versions of real assets. As NFTs are not 1:1 interchangeable (unlike, for example, bitcoin, where 1 BTC = 1 BTC), they can function as proof of authenticity and ownership within the digital realm.
NFTs have several basic features that characterize them:
Programmability - NFTs are programmable just like other digital assets and tokens used in smart contracts.
Traceability - thanks to a blockchain unique for each NFT, it is possible to trace all changes that were carried out in it.
Uniqueness - information stored in the code is unique only for a given token and differs from any other.
Indivisibility - tokens are not divided into parts and, as a rule, they can only be traded in full.
- What is a NFT Marketplace?
A platform thanks to which users or only platform owners are able to issue their NFT tokens (representing, for example, art works, videos, music, collectable cards) for decentralized trading. It is worth making your marketplace stand out from others and contain interesting components that will attract potential customers / users and encourage them to take action on your marketplace. Components which will allow you to sell more tokens. Among others, we will talk about things such as affiliate marketing system, royalites.
- Huge HYPE! 🔥
It's not hard to hear about "Everydays - The First 5000 Days" these last few days. After an avalanche of over 180 bids in the last hour of the auction, a JPG file made by Mike Winkelmann, a digital artist known as Beeple, was auctioned on Thursday by Christie's online for the equivalent of \$ 69.3 million. The price was a new record for a work of art that only exists digitally, breaking auction records for physical paintings.
Artists, especially those who work online, drew the attention of the NFT. An incomparable and unique token proves ownership of the work, even if someone is able to copy it. It very quickly began to be used as a means of identifying digital images.
1. Idea? 💡💡💡
If you want to set up your own token and create marketplace, you've probably already thought what you would like to tokenize. However, it is worth remembering that when creating an NFT, you should pay attention to the uniqueness of your asset.
Is your asset unique? By creating tokens, we are able to give them any unique attributes, such as a description, photo, QR codes or other serial number of things in the real world.
Assigning tokens to non-virtual things is becoming more and more popular! Blockchain technology allows you to tokenize anything like real estate, artworks, watches, t-shirts and more!
Think about an interesting solution that can delight the buyer. An interesting example are CryptoKitties, whose DNA is an attribute, which defines the appearance of a kitten. They are able to reproduce and their children have unique characteristics "inherited" from their digital parents.
2. Sell your tokens - Create your Own Marketplace ✨
Before we go over where and how to issue your token, we will discuss issues related to the dedicated marketplace.
If you think that the assets you want to tokenize are unique and original, you should not use marketplaces, which are aggregators for NFT, because your tokens may disappear into the thicket of others. Let your project grow and focus on creating your own marketplace where you can show the real value of your tokens.
Let's move on to what components your marketplace should or can contain.
- Make an Offer / Buy it Now ✔️
The marketplace should have plenty of selling and buying opportunities. Let the user decide how to buy the tokens. The standard types of actions a user can perform are actions such as 'buy it now' or 'make an offer' which may be related to an auction.
- Blind minting 🙈🙈🙈
An interesting option may be 'blind minting'. People love a kind of gambling. 'Blind minting' is a blind tranfer of the tokens for users who have previously deposited a given amount of cryptocurrency. The winning selection takes place after a set period of time. It is a very interesting alternative and it will surely attract a lot of users.
- Royalty component 🔥
A component that will cause a certain percentage of the transaction price to go to the assigned person's account each time the token is re-sold.
To make it easier to understand, we can imagine a situation where the artworks marketplace is just an intermediary between artists who sell their tokens (which represent artwork) and users. At the time of generating the token, it is assigned the wallet address of the original creator and the percentage that will apply at the time of sale on the secondary market. When the artist sells the token, it goes to another user. A user who wants to sell a previously purchased token on the marketplace will have to share the profit with the artist who is the author of the artwork.
- Affilate system
In the simplest terms, affiliation is earning on referrals, where the referrer earns commissions from selling the featured tokens / assets, and the seller earns more because he sells more tokens thanks to the publisher's referrals.
- User Interface ✏️
Surprise and convince users of your unique assets / tokens with an interesting marketplace look. The first impression is the most important. Above all, the interface should be easy to use and intuitive. The marketplace should be compatible with MetaMask or Binance Chain Wallet (depending on which blockchain network you choose) to ensure access for decentralized application.
3. Select a Blockchain network for the token 🏙️
When launching your own ecosystem for NFT (token and marketplace), you must decide on which Blockchain network you would like to transfer your assets. In my opinion, network availability is the most important factor in creating a marketplace for users, so below I would like to briefly list and discuss the advantages and disadvantages of the two most popular networks available at the moment.
The most famous network that guarantees the greatest security of all networks that support smart contracts / tokens. During periods of demand, users face high fees. In its present form, it is non-scalable and slow. The constant position on the market and ensuring safety compensate for the above disadvantages. Moreover, with the development of Ethereum, for example, updating to the second version, the network will gain in importance.
- Binance Smart Chain (BSC)
The newer network that solved Ethereum's problems, however, is less stable. Thanks to the very similar operation to the Ethereum network, low fees and speed of transactions, many platforms decide to create their decentralized applications and tokens on the BSC network.
- Which is better ??? 🤔
As this is a more project-specific issue, I recommend consultation with me and discuss more strategies and development opportunities. You are able to contact me via the contact form or email firstname.lastname@example.org
4. Token creation 💎💎💎
Creating a token requires the implementation and deployment of a smart contract. The most popular token standards are ERC721 for the Ethereum network and BEP-721 for the BSC network. High charges for using the network seem to be the most important at present. There is no point in creating a series of cheap NFTs if the fee for a smart contract in Ethereum generating one NFT is tens or even several hundred dollars. This situation works to the advantage of Binance Smart Chain. There are also hybrid solutions, where the NFT token is created only after the purchase of a given asset.
It is important that you arm the entire project with an experienced Blockchain developer who will be able to choose a strategy that is right for an individual idea and create the entire infrastructure for the NFT project. I invite you to cooperate with me using the contact form or email email@example.com