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How NFT Marketplaces and Platforms Are Evolving as the Industry Maturesby@gabrielmanga
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How NFT Marketplaces and Platforms Are Evolving as the Industry Matures

by Gabriel MangalindanJanuary 10th, 2023
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NFT marketplaces enable users to create, search, buy, sell, and trade non-fungible tokens (NFTs) NFTs are digital assets that reflect ownership of a one-of-a-kind object or piece of material, such as a work of art, a collectible, or a portion of virtual real estate.
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NFT marketplaces enable users to create, search, buy, sell, and trade non-fungible tokens (NFTs). NFTs are digital assets that reflect ownership of a one-of-a-kind object or piece of material, such as a work of art, a collectible, or a portion of virtual real estate.

To use an NFT marketplace, customers must create a digital wallet to keep their crypto and NFTs. This is possible with several wallet providers, including MetaMask and Coinbase Wallet. Users may explore the marketplace and see available NFTs once they have a wallet set up. They may then choose an NFT to buy and make the transaction using their digital wallet.

NFT markets often provide several tools and services to help purchase and sell NFTs. Search and filtering features to assist users in locating certain NFTs and facilities for producers to mint and sell their own NFTs may be included.

NFTs are kept on a blockchain that keeps track of all transactions. This assures that NFTs cannot be reproduced or changed and provides for safe, transparent ownership.

NFT marketplaces allow users to purchase, sell, and exchange unique digital goods utilizing cryptocurrencies and the blockchain's security and transparency.

How NFT platforms have adapted and evolved

NFT marketplaces have seen significant changes in recent years. One of the most important recent changes is the increasing adoption of NFTs by traditional brands. Non-fungible tokens were previously mostly employed in specialized online communities, such as those in the digital art and gaming industries. 

In addition, there has been a shift toward developing more sophisticated NFT markets. As the industry has grown and expanded, other NFT markets have arisen, offering a wider variety of capabilities, such as the ability to quickly produce and sell NFTs (i.e., MagicEden launchpad) and more comprehensive search and discovery tools. These new NFT markets have more features than their predecessors.

Furthermore, there has lately been a push to integrate NFT markets with other blockchain-based platforms. Some NFT marketplaces, for example, have linked with decentralized finance (DeFi) platforms, allowing users to use NFTs as collateral for loans via NFTFi.

Other NFT markets allow consumers to purchase and sell NFTs using fiat currency. This improvement has also boosted the liquidity of the NFT market, making it easier for users to purchase and sell non-fungible tokens.

How NFT platforms are adapting as the market matures

The NFT platform OnePlanet initially started as a traditional marketplace for trading NFTs, but it also added launchpad and development features for incubating new NFT projects. Social features include activity tracking and a plan to add direct messaging, community boards, and social chat.

Earlier this month, the Polygon-based NFT marketplace started working with Sandbox Network to provide the infrastructure for their NFT project, Meta Toy DragonZ. The NFT project is building a Play-to-Earn game called Meta Toy City with RPG and multiplayer gaming elements. 

Meta Toy Universe is a hack-and-slash game where players control NFT characters, collect pets and fight in PVE and PVP scenarios. By providing incubation services and infrastructure support, NFT marketplaces can help the industry grow by making it easier for creators to develop their projects.

Additional support for creators and NFT collections can help the space to mature and diversify in its offerings and technologies due to new ideas being able to get the help needed to launch.

OpenSea, the most popular NFT marketplace, recently moved to distance NFTs from traditional cryptocurrencies due to recent events, including the collapse of FTX. However, CEO Devin Finzer said that it's "not necessarily the case" that NFTs will always be traded via cryptocurrency. 

Finzer continued to explain that NFTs could be valued in USD instead of crypto. However, it still needs to be known whether he believes users could buy NFTs directly with fiat or via a stablecoin like USD Coin (USDC) or Tether (USDT). 

However, this shows that the platform is open-minded toward the future of NFT trading. The ability to adapt to constantly changing market conditions and circumstances is a factor that can help in the survival of NFT platforms in the future.

Solana-based NFT marketplace, MagicEden, released a tool that enables creators to enforce royalties on collections. The move by the NFT platform follows from OpenSea's version of the tool launched in November

NFT royalties are a way for creators to earn an income via a fee collected from every sale. For example, if an NFT from a collection sells for $5,000, and there is a 6% royalty fee, $300 will be transferred to a wallet connected to the creators.

The Solana-based royalty tool, Open Creator Protocol (OCP), is built for SPL tokens (Solana-based tokens) and is similar to the Operator Filter Registry used by OpenSea. 

The royalty enforcement tool allows creators to ban a marketplace from listing their collection if they don't enforce royalties on trades. In addition, supporting creators through royalties can help the community by incentivizing new creators and projects to come into the space.

Conclusion

The market for non-fungible tokens (NFTs) has grown tremendously in recent years, as seen by the growth of the user base, the creation of more complicated platforms, and more interaction with other blockchain-based platforms. Therefore, the continued adaptation and innovation of projects and platforms in the NFT space will be crucial to its growth.