Non-fungible tokens (NFTs) are an excellent example of how blockchain technology has steadily diversified in applicability and use cases. These crypto tokens have initiated the ongoing "NFT revolution" in the crypto space as a novel asset class. So much so that these digital assets have accumulated total sales of over $2.5 billion in the first six months of 2021.
What makes the sale of an NFT token a success is the marketplace on which it is trading. Its security and user experience contribute significantly to the revenue, and this leads us to this question–should you use an existing white label NFT marketplace solution or build such a marketplace from scratch?
What is an NFT Marketplace?
Let’s set up the conversation here. Broadly, an NFT marketplace platform is a website where you can buy and sell NFTs. Apart from being a buyer-seller meeting space, an NFT marketplace solution has provisions for minting NFTs and conducting NFT auctions. Thus, artists can mint their own digital collectibles and artwork, which are then purchased through a bidding procedure.
Since NFTs are flying off the shelves and selling like hotcakes, everyone is trying to be a part of this movement. Your own NFT marketplace is a great way to partake in this crazy business. There are two ways to do that: you can either build your marketplace from scratch, or you can use a white label NFT marketplace.
There are several reasons why the latter can be a great choice for you. Here’s why.
When to Choose a White Label NFT Marketplace?
We have made a list of reasons as to why we consider white label NFT marketplace will be better for you:
Quick tech development
If you were to build your own NFT marketplace from scratch, it would take a lot of time. An average NFT marketplace platform needs at least 3 months to develop. However, it can go up to 12 months or more depending on the level of sophistication and unique platform features. On the contrary, releasing a white label NFT marketplace takes much less time, even with complex functionalities.
Adding features beyond the standard
Every marketplace platform has its unique set of characteristics that makes it special and sought-after. While you can do this on your own, a white label solution makes the task less resource-intensive. Most of these NFT marketplaces are open source, which means you can incorporate custom features according to your specific requirements.
You are free to build your own NFT marketplace from scratch, but be prepared to shell out at least $100,000. The prices become steeper as you keep adding extra layers of security and additional features. But launching white label NFT marketplace will be easier on the pocket, helping you save thousands of dollars.
Since an NFT token is unique, extra precautions must be taken about who owns these NFT tokens. NFT marketplace development needs special care when it comes to developing its security features. Any lapse in data encryption techniques can seriously hamper its data integrity and ultimately compromise security. However, a white label NFT marketplace already comes with built-in security features and doesn’t require extra work. Additionally, you don’t have to bear the burden and cost of security auditing because the developing company performs rigorous tests and audits the white label solution.
The problem with building an NFT marketplace platform on your own is that you need to separately focus on wallet creation. Additionally, you need to focus on developing wallet integration services to make the platform functional. But a white label NFT marketplace comes with an integrated wallet that saves time and money.
A Marketplace to Launch Your NFT Project
OpenNFT by Ulam Labs is an open-source NFT marketplace with all the features necessary for quick deployment and customization. The platform is built on the Algorand blockchain, and lets you create or transact diverse NFTs, even without much coding experience.
Different blockchain networks like Ethereum and Binance Smart Chain have separate non-fungible token standards. High transaction fees is a major concern with these networks, which make small, day-to-day NFT transactions very expensive. Moreover, besides scalability concerns, these networks entail the possibility of hard forks, which complicate linking the NFT to the real owner.
On the contrary, OpenNFT is built on the forkless Algorand blockchain. The ownership of an NFT token is almost sacrosanct, given its unique nature. A forkless chain ensures that NFTs will never be duplicated. Other NFT tokens will never enjoy this guarantee that Algorand provides to its users. The ownership is also 100% in control of the users as the platform is linked to their MyAlgo Wallet or AlgoSigner wallets. Wallet integration is built-in to OpenNFT, making for a seamless NFT buying experience.
The OpenNFT platform supports payment options in stablecoins like USDC and USDT. We believe that by using cryptos that are pegged to fiat currencies, liquidity will never be an issue for the solution.
OpenNFT strikes a perfect balance between being a generic out-of-the-box marketplace and having enough room for basic branding customizations. You can either release it as it is or incorporate custom features according to your business idea, whatever you imagine for the frontend or backend of the application.
OpenNFT offers an excellent secondary marketplace where artists can earn from the NFT auctions. Simultaneously, the marketplace owner can charge a small platform commission fee for each transaction on the platform. This business model will drive the overall growth of NFTs and help drive sales.
The ins and outs of using Open NFT
We assume that you have gained a fairly good idea about the benefits of a white label solution by now. We also hope that you properly understand why OpenNFT is perhaps your best choice. However, we have something else to say right now. However, it is our responsibility to also tell you when not to use a white label solution.
Primarily, if you’re looking for a high degree of customization and specialized features, then a white label product might not be suitable, and it will be a much better idea to build it from scratch. The only thing is that you need to have appropriate resources to do that–find a reliable team or have it in-house.
Having said that, Ethereum certainly has its benefits concerning the creation of NFTs and marketplaces, and may be appropriate for many projects, especially those that want to capitalize on its network size. But at the same time it raises obstacles like high development costs and maintenance. In view of these problems, we believe Algorand is often a better alternative to meet your requirements.
At Ulam Labs, we have a team of experts who can help you build your NFT marketplace from scratch. But if what you’ve read about OpenNFT convinces you that it is a better choice for your case, we can help you with customizing it to suit your idea. You can also use the OpenNFT code and build anything off it, as it’s published under an open source license.
Want a cost estimate for your NFT idea? Let’s talk!