How to build an NFT marketplace like OpenSea
Quick guide on how to build an NFT marketplace for Blockchain Gaming?
This is a complete guide to building your own NFTs marketplace. If you are looking for knowledge on how NFT’s work, NFTs tex, how to launch an NFT marketplace, then this guide is enough.
Table of Contents:
- Introduction
- How does an NFT marketplace work?
- OpenSea marketplace working structure
- Things a blockchain game player should know about NFT’s marketplace:
- How to launch your NFT’s marketplace for Blockchain gaming?
- Key steps you need to build an NFT marketplace like OpenSea
- How NFTs are texted?
Introduction:
Let us start with the following statement: blockchain gaming is finally here. More and more game projects are emerging, bringing blockchain to people’s lives in different ways. However, one should understand that these are just the first steps on a long road ahead, especially when it comes to bringing them closer to everyday gamers. The challenge lies in making games stand out and creating the infrastructure to support them.
In blockchain games marketing, players should know that blockchain-based games can be easily integrated with any crypto wallet for blockchain game players.
How does an NFT marketplace work?
Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. In 2017 the world witnessed the birth of CryptoKitties.
NFTs are a unit of data, specifically digital files. Furthermore, they are blockchain-based digital assets with a blockchain wallet address and a blockchain private key.
It is important to say that copies of the NFT registered on the blockchain are accessible to everyone, not just the owner. Although the digital files themselves are infinitely repeatable, the NFTs that represent them are tracked on their core blocks and provide customers with proof of ownership.
As the NFT principle is based on uploading digital materials to the Ethereum blockchain, this procedure leads to the codification of NFT. This gives rise to the establishment of the price, ownership, and transfer records, thus preventing digital forgery or file replication. Once shipped, NFT will exist permanently on the blockchain as long as the system itself is operational.
There are no two NFTs that are completely identical because each piece contains unique digital properties. Even if the artist publishes two works without clear physical differences, the metadata encoded in each NFT is different.
Apart from artists, celebrities also had their notable share in NFT token trading. Namely, in 2019, the NBA league released Top Shots, more precisely, short summaries of games in reels format, which generated 230 million dollars via blockchain. The clip of LeBron James and Zion Williamson alone had a value of 200,000 dollars.
A well-known musician in the United States, 3LAU sold his first crypto-album through an auction in less than 24 hours for 11 million dollars.
YouTuber Logan Paul also sold his NFT, more precisely his graphical version of Pokemon for $ 5 million.
NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
Some of the biggest marketplaces are
- OpenSea
- Rarible
- SuperRare
- Foundation
- AtomicMarket
and more
OpenSea Marketplace working structure (How does OpenSea work for NFT retail/sellers?)
NFT marketplaces have a variety of non-fungible tokens on sale, from both famous artists and amateurs. There are loads out there to choose from, but one of the biggest is OpenSea — the world’s first and largest digital marketplace for crypto collectibles and non-fungible tokens.
OpenSea launched in 2017 with $2 million in start-up funding. The company recently raised an additional $23 million in April 2021 with the help of the venture capital fund of Andreessen Horowitz.
Sellers of NFTs pay a 2.5% commission on any sales made through the OpenSea system. Sellers have to set up a wallet, create Collections, upload their work and list them for sale.
OpenSea allows the secure exchange of digital items between two parties without the need for trust between them or a centralized authority. The unique contract for each NFT is stored on the peer-to-peer Ethereum blockchain.
Submit your NFT for approval by OpenSea and then sell it on OpenSea.
The default payment via the OpenSea system is made in Ethereum. However, sellers have the option to receive payment in over 200 cryptocurrencies.
To get started, all you need to do is create an account to browse NFT collections. Assuming you already have a crypto wallet, connect it and you’re ready to explore NFTs. OpenSea is free to use by the buyers of NFTs.
All the purchase transactions conducted by a buyer are made in the cryptocurrency called Ethereum (ETH). The OpenSea system converts ETH into wrapped Ethereum (WETH). A buyer who wants to purchase an NFT on OpenSea needs to have a digital wallet that contains ETH or WETH of a sufficient amount to either pay the fixed price for the NFT (if it has one) or pay for a successful bid in an auction of that NFT.
(Source: https://bit.ly/33Xt6uU)
Things a blockchain game player should know about NFT’s marketplace:
Blockchain game players can sell in-game NFTs to other players via your NFT marketplace.
Instead of a simple one-level game with a very limited ecosystem, blockchain games nowadays can be far more advanced and complicated. It is not an easy task to make games come true in the blockchain world because game developers need to learn about blockchain infrastructure and how the whole system works before blockchain games can catch on.
We could see incentives for gamers to trade blockchain games’ NFTs on NFT marketplaces. It also helps game developers to attract blockchain gamers by offering blockchain-based virtual goods up for sale on gaming or NFT marketplaces.
Blockchain gamers are blockchain enthusiasts, so gaming marketplaces are expected to grow in popularity as blockchain games will be more abundant on gaming marketplaces.
How to launch your own NFTs marketplace for Blockchain Gaming?
When blockchain gaming started to gain popularity, gamers couldn’t help but notice that there are hardly any blockchain games on the market today. Two possibilities arise. Either game developers will be forced to create their own blockchain games or to buy NFTs for blockchain-based games. (Why Video Game Makers See Huge Potential In Blockchain — And Why Problems Loom For Their New NFTs (forbes.com))
However, blockchain gaming is still in an early stage, and blockchain gamers are limited to a handful of blockchain games. To give blockchain-based games more exposure, gaming marketplaces are launching their own tokenized NFTs.
Key things you need to build an NFT marketplace like OpenSea?
Now when you understand what are NFTs and how OpenSea works, you may decide to build your NFT market like OpenSea. Here are some basic steps:
- Select the right blockchain
- Identify audience
- Create suitable UI for NFT Marketplace
- Specify operational domains
- Choose tokens
- Develop Smart Contracts
- Test and Deploy Marketplace
Or, you can simply use the OpenSea Clone Script. OpenSea Clone Script is a ready-made script that helps to launch your own P2P NFT marketplace.
How are NFTs taxed?
NFTs are also subject to capital gains taxes (in the USA) — just like when you sell stocks at a profit. Since they’re considered collectibles, however, they may not receive the preferential long-term capital gains rates stocks do and may even be taxed at a higher collectibles tax rate. For now, the IRS has not yet ruled what NFTs are considered for tax purposes. In most cases, yes, NFTs (non-fungible tokens) are subject to the same tax laws as fungible cryptocurrencies.
NFTs have allowed charities, celebrities, and individuals to auction off their digital creations, with all the proceeds going to a charity of their choice. If you’ve donated your NFTs to eligible charities, then you may qualify for the reduced tax liability. When you donate an asset, you can claim the appreciated fair market value at the time of donation as a deduction against your taxable income. For example, if you own $50,000 worth of artwork and choose to donate it to a charity you regularly support, you may be able to write this off as a charitable deduction on your return.
Final Thoughts
There are many considerations when building an NFT marketplace, but it can be done. The steps you need to take in order to create your own successful marketplace will vary depending on the specific needs for that project.
We recommend selecting the right blockchain, identifying an audience appropriate for what you’re selling, and creating a UI that is suitable for their needs. Once these basics have been established, think about operational domains like tokens or smart contracts before testing and deploying your product (and getting feedback).
For more informative articles like these, head to our blog page on Medium. (https://utopianglobal.medium.com/?source=topics_v2---------0-89--------------------2dba9ff1_97c6_40ef_9fa0_43fbd2e43fa0-------19---)