5 Major Mistakes To Avoid While Creating an NFT Marketplace

The NFT market has generated much hype in recent years. The NFT Marketplace is an online marketplace where unique digital products can be purchased and sold. It will be challenging from one perspective, but on the other hand, it creates opportunities, one of which is the development of an NFT market.

What Should You Avoid Doing While Creating An NFT Marketplace?

1. Without Adhering To Proper NFT Guidelines

The most well-known and widely used NFT standard to date is ERC-721. So make sure your marketplace complies with ERC-721 guidelines if you're creating one. The ERC-721 standard's specified structure and naming scheme should be followed when creating NFT data or metadata. By doing this, you make sure other marketplaces can access NFTs made on your marketplace.

2. Receiving Data From The Database

Since the data in a marketplace's database is modifiable, anyone working on the system's backend can alter the data. On the other hand, a digital ledger's data is unchangeable. As a result, it gives complete transparency and cannot be modified or erased.

3. Backend Writing Operation For A Blockchain

In NFT marketplaces, transactions can be started from the front end or the back end. The user signs the transaction using their private key, which is kept in their crypto wallet, during the frontend process. However, platform developers who are working on the backend and utilizing their private keys carry out the backend process.

4. Flawed Smart Contract Architecture

In an NFT marketplace, smart contracts are used to accomplish all operational activities. Every action that needs to be taken on the platform is triggered by them. As a result, they are crucial to how NFT marketplaces operate. And for that reason, smart contracts must always be designed correctly.

5. Not Implementing NFT Fee

A marketplace may use either royalty fees or marketplace commissions as commission types. When creating an NFT marketplace, the following two commissions can help you and the artists make more money.

Royalty Fee

A royalty commission ought to be credited to the owner's wallet each time a user sells their NFT and another user purchases it. NFT royalties are monetary sums that are given to NFT creators as remuneration for their continued business.

Merchandise Commission

An agreed-upon fixed commission percentage must be added to the account of the marketplace owner each time users post their NFTs there. The royalty commission is quite similar to the marketplace commission in that the marketplace receives a predetermined portion of each sale. 

Third-party APIs

You can consider using third-party APIs rather than holding important information about an NFT in your marketplace database. Every piece of knowledge about NFT collections, transactions, users, etc. is included in an NFT API. You can retrieve the price of an NFT, its metadata, its ownership information, its transfer information, and more via APIs.

Source >> Top 5 Mistakes To Avoid While Building NFT Marketplace