Ethereum is widely recognized as the second cryptocurrency after Bitcoin, but this is only from the perspective of being a store of value. When it comes to its blockchain features, Ethereum is considerably superior since it introduced the concept of smart contracts that revolutionized modern technology. Of course, since the network is so famous among developers, this aspect has influenced the Ethereum price, as media coverage on what Ethereum can do is important for the prices to surge.
With so many beneficial characteristics for everyone approaching it, Ethereum became the perfect tool for creating NFTs and marketplaces for them to be sold at auctions. OpenSea, the biggest NFT marketplace, is the perfect example of what Ethereum can be used for regarding marketplaces, but there are many others, such as Magic Eden, Castle and Floor.
Although the blockchain has many things that need improvement, it is currently the best digital tool for anyone who wants to create decentralized online environments. Here’s why.
Ethereum blockchain perfect for any industry
Ethereum proved useful for many sectors, from healthcare to finance, as it provided a safe and simple way to store data and secure systems. Generally, these are the main benefits of the Ethereum blockchain:
- Efficient coordination of data by eliminating the need for intermediaries, which eliminates the chances of fraud;
- Rapid mobilization by enabling smart contracts to automate and streamline everything through programming;
- Easy authorization access in companies where privacy is paramount, where only authorized entities can interact with the network;
- Improved scalability through layer 2 solutions that ensure increased throughput and performance;
- Offered finality in transactions by making them immutable and tamper-proof so that they’re irreversible;
Why would developers use Ethereum to build an NFT marketplace?
Besides the benefits of the blockchain that can be adapted to any industry and business, there are particular reasons why Ethereum would be used for an NFT marketplace, such as the following:
- It’s an established ecosystem with a strong community and immense tooling support. Ethereum is also packed with numerous dApps and wallets that are compatible with NFTs, which allows for the integration to go smoothly;
- It leverages interoperability through token standards with features like ERC-721 and ERC-1155. Standard interfaces provide integration and transfer that operate efficiently but are also used as voting tokens, staking tokens or virtual currencies besides NFTs;
- It has considerable network effects with an enormous user base whose active digital wallets help enhance visibility and discoverability;
- Its ecosystem integration provides DeFi protocols and services that allow the use of liquidity pools and decentralized exchanges, expanding the utility of use cases for NFTs within a marketplace;
What do developers need to build an NFT marketplace on Ethereum?
Gathering everything needed and learning how to program with Ethereum can be tricky. That’s because all the technology used is complex, which is also why the final product is so challenging to break. Ultimately, Ethereum is so safe simply because it‘s difficult to get into.
Here’s what you’ll need to learn to work with for the first NFT marketplace:
- Solidity is Ethereum’s main programming language and is one of the most demanding to master since it’s used to develop smart contracts;
- Web3.js is a JavaScript feature that needs to be implemented to allow connection with the blockchain;
- Truffle is required to test and deploy Ethereum smart contracts. The application allows you to custom-build procedures and implement public and private networks;
- Ganache is a personal blockchain that ensures the rapid construction of distributed applications on Ethereum;
- IPFS stores and access data by pinning it in a place. This allows for conjunction with multiple smart contracts;
- React.js is an open-source front-end framework you use for creating interfaces, as simple or as complex as necessary;
- Metamask lets you access the blockchain with a software wallet through a browser or mobile app;
What are the steps required for building an NFT marketplace?
Taking your time is best, as an NFT marketplace isn’t a simple website where people can purchase assets. It implies different and more complex transactions and actions compared to regular networks, so here are the steps for building an NFT marketplace, briefly explained:
- Research everything you need to know by contacting a blockchain developer. The network’s users will offer you support in what includes security and protocol, so you should get in touch with the best blockchain development service provider for selecting a blockchain;
- Develop the best user interface. This feature is the most important, allowing customers to interact with the service easily. Things like a search bar, filters, categories and a community section are crucial;
- Select the appropriate wallet to use and store the cryptocurrency used for cross-chain interoperability;
- Develop the front end of the application. This feature is essential because it is used to communicate with the user, so an intuitive UI is required for increased productivity and security precautions;
- Create smart contracts and the back end of the marketplace. Smart contracts are necessary to operate the management of large data flows and their validation processes, while the back end is important for the logic of the NFT platform to be implemented;
- Test the product numerous times until no defects or faults are detected. The final test should show that the platform is secure, useful and dependable;
- Deploy the NFT marketplace to a cloud server. This final step means you need to maintain and upgrade the system regularly to ensure the product meets all market requirements;
It isn’t easy to create such a product, considering how many steps are included and how complex the process is. However, as developers can create the perfect apps instead of using the ones full of defects, this system allows for more freedom of people’s financial abilities. Also, it encourages NFT creators and auctioneers to continue their activities in a safe and productive environment.
Bottom line
Ethereum provides one of the best blockchains for developers to create amazing applications and platforms. With the help of smart contracts and DeFi systems, Ethereum can sustain many users while increasing its productivity; all it takes is for developers to create a marketplace and test the final product multiple times to deliver the perfect ecosystem for NFTs.
