Since the advent of CryptoPunks in 2017, NFTs have become increasingly popular. They have been advancing and becoming one of the most significant technological achievements of the era. The demographics of people entering the NFT world validate the NFT world’s growth. According to the research, NFT sales typically range from $10 million to $20 million per week. NFTs have evolved considerably in recent years, however, some shortcomings might arise during NFT marketplace development. To put it simply, it is very vital to keep certain points in mind before building the NFT marketplace.
Things to Avoid While Building an NFT Marketplace:
1. Putting into practice Ethereum-incompatible standards
It is essential to implement Ethereum standards that are compatible with NFT Marketplace. On the Blockchain, various Ethereum token standards are compatible, including ERC-721, ERC-1155, ERC-998, and ERC-721. Ethereum 721 is the most compatible and widely used token standard.
To put it honestly, the standards implemented when establishing NFT marketplaces are entirely based on preferences. However, it is always advisable to implement compatible token standards like ERC-721 while establishing your NFT marketplace.
2. Fetching data from the database
It is always the wrong move to fetch data from the marketplace’s database instead of its host blockchain. The rationale is that data stored on the market is open to editing and has a high probability of being tampered with or utilized inappropriately. Contrary to the blockchain, where the data is immutable. It will be simple to keep track of any changes made to the block.
It is very important to make sure that all of your saved data is unchanged to minimize risk. Additionally, there is a danger that data in a database will disappear. However, data is secure and safe in this instance. Therefore, be careful not to overlook this factor before establishing an NFT marketplace.
3. Initiating data transactions from the backend
Transactions in NFT marketplaces can be initiated from either the front end or the back end. A front-end specialist is accountable for everything a user sees in the browser and interacts with while entering data and receiving responses. While the back end, often known as the database, remains on the Ethereum network and communicates with the front end to perform its functions. Back-end developers are in charge of this.
However, it is not advised that back-end developers handle back-end transactions. This not only poses risks but also allows back-end developers to possess your NFTs. It is therefore advisable to allow users to sign their transactions and do all other necessary actions when purchasing NFTs.
4. Structuring faulty smart contracts
Smart contracts are required for implementing all commercial operations in an NFT marketplace. There are two types of contracts: the ERC-721 contract and the Controller contract. They serve as the foundation for everything that must be done within the platform. The faulty structure of smart contracts is subject to vulnerabilities. Therefore, it is very important to ensure that smart contracts are properly structured.
5. Not leveraging Third-party APIs
You can consider using third-party APIs in place of storing critical info about an NFT in your marketplace database, such as an NFT’s price, NFT metadata, ownership data of NFTs, etc. All data on NFT collections, transactions, users, etc. is available through an NFT API. Similar to a server, API enables seamless user interaction with websites or applications. So, while building an NFT marketplace, using a third-party API is a reasonable choice.
NFT marketplaces are growing at a fast pace. The NFT market has a more than $11.3 billion market valuation overall. The NFT market is expected to rise to $231 billion by 2030. Therefore, it is important to outline the dos and don’ts before building the NFT marketplace. By being strategic in your approach your NFT marketplace will surely generate fruitful results.
To make this happen, getting in touch with the best NFT marketplace development company providing top-notch NFT marketplace development services is always the right decision.
So, if you are desiring of building your own NFT marketplace inclusive of all the advanced features, don’t inhibit to contact us!