Non-Fungible Tokens are picking up the trend daily. In just about 6 months of the year 2021, the total sales volumes got shot up to $2.5 billion from $13.7 million in the 1st half of the year 2020. This is all due to the value associated with this asset and its benefits. The asset is
- Easier to trade when compared to traditional systems
- Gives artists complete control
- Smart contracts compatible
- Completely digital, secure, and fast
- Copyright protected.
Considering all these benefits of NFTs, lots of users are jumping into this trend and listing their work as NFTs. These NFT transactions are facilitated by an entity connecting buyers and sellers which are known as the NFT marketplace. Since the demand for NFTs is rising day by day, the sales experienced by the NFT marketplace are also increasing. OpenSea, which is the number 1 NFT marketplace by sales recorded $150 million in June.
Other Famous NFT marketplaces are
How Foundation NFT Marketplace Works?
After Superrare and NiftyGateway, Foundation has established itself as a somewhat reliable and curated NFT marketplace. It describes itself as a bridge between crypto and culture to foster a network of mutual support between artists, creators, and collectors.
Cryptocurrency used: Foundation works on the network of Ethereum blockchain and hence accepts Ether (ETH) for transaction purposes of an NFT. Hence the wallet which needs to be linked to the Foundation marketplace will be based on an Ethereum blockchain like Metamask. Both the creators and buyers will have to link their Metamask wallet to Foundation to successfully create an account on Foundation and conduct transactions.
Foundation and Its Creators: The only way for artists to list their art on Foundation is when they are invited on the platform to mint NFTs. They will have to mint and then list their NFTs on the marketplace for users to interact with the NFTs. Foundation takes about 15% of the sale price from the creators and hence creator gets 85% of the overall sale amount. The best perk about the foundation is that it will automatically deposit 10% of the future sales price of the NFT to the original seller in the form of royalty.
The reason for anyone to consider building a community-driven NFT marketplace-like foundation is the profits and the money involve. In just about 5 months of the launch of Foundation NFT marketplace, it has been able to generate a revenue of 26,657 Ethers which is about $85,895,453.52. That’s a lot. That’s the perk of having an NFT marketplace that is creator-driven and creator-centric. Since all the features are concerned and designed around the creators, many more creators are going to trust Foundation with their art, and try to earn money. Some features of the Foundation are listed below.
Foundation for its community: Just like creators, the investors will also have to link their Metamask wallet to the Foundation to open an account. If the buyer bids in the auction in the last 15 minutes of the auction, the auction gets pushed for another 15 minutes until there is no consecutive bid. When an investor invests in an NFT, the NFT gets stored into the user’s Metamask wallet in exchange for Ether. The users will have a personalized profile page that will show the collection of NFTs of the collector. The collector can also share it on social media, display in a virtual gallery or even sell it later on the secondary marketplace.
Features of Foundation
The foundation helps the artists mint their digital assets on the blockchain. Minting is the process in which the digital asset/NFT becomes an integral part of the Ethereum blockchain. This will make the NFT tamper-proof and the assets won’t be modifiable.
Search and Filters
Foundation has a search option that allows us to look for creators and collectors of our choice. We can even search artworks of our interest by using this feature. There is also a display of top collectors and creators in the explore tab in which we can sort according to different periods
As soon as the NFTs are minted, the creator can list work on the marketplace. The marketplace follows an auction format, where the auction will begin as soon as the 1st bid is placed on the NFT in the marketplace. If no one places a bid, the auction will not start. In that case, the creator can modify the NFTs price but will result in gas fees.
All foundation creators will have a dedicated profile created for them as they make an account on Foundation. This profile page will display the profile picture and the social media links for the creator, which will probably make it easy for the creators to earn a following. It also involves all the bidding history of the piece created and also displays artists work on Foundation,
History of Art
Each art piece created using the Foundation can be traced back to its original 1st seller. This introduces transparency in the system and shows the information of who created the art, when the art was created, and who has owned the art in the past.
One of the biggest selling points of the Foundation is that it is decentralized in nature. This means that there is no secret room somewhere handling the Foundations ecosystem and the elements like the NFTs within the Foundation. The whole ecosystem is not at the mercy of a single server. It uses a decentralized peer-to-peer network, which makes it more efficient, fast, safer, reduced the cost of operation, and more.
Why Have An NFT Marketplace?
NFTs are picking up and there is no barrier on the type of marketplace it can be. If looked upon broadly, there exist two types of marketplaces.
- Universal Type: These involve the listing of all types of NFTs in a single marketplace.
- Specific Niche Type: These marketplaces only focus on a specific niche of NFT. It can be games, memes, gifs, arts, tweets, etc
NFTs have a huge market as we have seen earlier and as the involvement of the general public increases in this asset, the industry will eventually reach higher heights. Many NFT niche marketplaces have yet to be created or are not that well known. Also, we can always program a marketplace having a unique feature. It can be a free listing of NFT, no entry barrier, only dedicated community access, etc. A marketplace script can be used to program a personalized marketplace. So, with the right NFT Marketplace script, a personalized marketplace can be programmed with all the features and functionalities of an NFT marketplace.
These NFT marketplaces can now easily be created with an experienced team at Vardhaman Infotech. We have been working in the area of Blockchain Technology and have partnered with clients from all over the globe. We take on-demand projects and also offer quick to deploy solutions. Our NFT solutions enable entrepreneurs, enthusiasts, investors, start-ups, build their own NFT marketplace. If you are interested in creating your very own NFT marketplace get in touch with us. We would be honored to work with you.