Miko Lehman

Cost of NFT marketplace development explained

The virtual goods market is worth an estimated $30 billion today, growing with the social gaming trend. Non-fungible tokens, or NFTs, are digital assets that are unique and non-divisible. They are also known as tokenized assets because they have properties of a game token.

‍Non-fungible tokens can be used to represent unique digital objects such as in-game items or physical real-world objects like artwork or collectibles. Because of these characteristics, NFTs are the ideal way to represent virtual goods in any application. For example, NFTs could be used for a video game (virtual items), eCommerce (digital artwork), IoT (physical devices) and much more. This article discusses the cost of NFT marketplace development in detail.

NFT marketplace costs

Understanding the Basics of Non-Fungible Tokens

As mentioned in the introduction, NFTs are unique digital assets that are non-divisible and are used to represent virtual goods or real-world items. Non-fungible tokens are a new type of crypto asset that has been gaining traction in the market over the past year. There are many use cases for NFTs, such as gaming, virtual items, artwork, stocks and more.

There are several advantages of using NFTs to represent virtual goods: Tokenization is the process of creating digital tokens (using cryptography) and representing an asset (real-world or virtual) as a digital token on a blockchain. The token represents the underlying asset.

Developing a NFT Marketplace: Where and How to Begin?

When we talk about developing a marketplace for NFTs, the first question that comes to mind is where to begin. The first step towards developing a marketplace for NFTs is to identify the use case for NFTs. Once you identify a use case, you can then decide if a marketplace is the right solution to solve it.

For example, if you want to create an ecosystem for gamers, NFTs can be used to represent in-game items, points, and rewards. Another example would be if you want to tokenize real-world artwork and make it tradeable. You can use NFTs to represent each artwork and make them tradeable on a marketplace.

Estimate for Developing an NFT Marketplace: Tasks and Timings

Now that we have identified the use case for NFTs, let us understand the tasks involved in developing a marketplace for NFTs. The development cost for a marketplace for NFTs involves designing the architecture of the system, development of the application, testing, and marketing. Let us go through each task in detail.

  • Architecture Design – Architecture design is the first step in developing a marketplace for NFTs. The design should address the data model and the functionality of the marketplace. It is important to understand the functionality of the marketplace, identify any bottlenecks and make sure everything can scale as the business grows.
  • Product Design – Once the architectural and data models are built, you can start designing the product. At this stage, you can focus on the user experience of the application by designing the user interfaces and flows.
  • Development – Once the product design is finalized, you can start developing the application. Depending on the application, development can take anywhere between 6 weeks to 6 months.
  • Testing – A significant portion of the development cost of the marketplace is spent on testing. This is because the application must be robust and secure. The testing process includes functional testing, security testing, regression testing, and many others.
  • Marketing – Marketing is an important part of the development cost of a marketplace. You must have a marketing strategy to promote the marketplace as well as the NFTs.
NFT marketplace costs

What is included in the development cost of a marketplace?

Apart from the architectural design and product design, there are other tasks that contribute to the development cost of a marketplace. These tasks include hosting, domain name, security, and general admin tasks. Let us understand each of these tasks in detail.

  • Hosting – Hosting is the storage of data that is served to users visiting your application. For example, when you visit a website, the data is stored on a server. The data is then retrieved from the server and displayed to you when you access the website. Hosting can be done on a cloud server or on a virtual private server (VPS). On a cloud server, you rent the resources as per your need and pay as you go. On a VPS, you rent a physical server and have root access. This is more cost-effective than cloud hosting, but you need to maintain the server.
  • Domain Name – A domain name is the name of your application. For example, the domain name for Facebook is Facebook.com. Domain names are important because they are the primary identifier of an application or website.
  • Security – Security can be achieved by a secure code, secure data storage, and secure communication channels. The application must be robust and secure against cyberattacks.
  • General Admin Tasks – The general admin tasks include managing product/service offerings, managing teams, managing the project, and managing finances.

Conclusion

This article discusses the cost of developing a marketplace for NFTs in detail. Architecture design, product design, and development of the application are the major tasks involved in developing an NFT marketplace. The development cost of a marketplace includes hosting, domain name, security, general admin tasks, and marketing.

Do you like this article? Share it with your friends:
Author:

Miko Lehman

Write to me: m.lehman@gmihub.com

Recommended articles