Choosing an NFT Marketplace
Roger Lopez
Chief Marketing Officer & Chief Product Officer, Advisory Board Member , AI, Blockchain, Web3 junkie
Since the emergence of Web 3.0, which is also popularly known as the decentralized web, the digital world has transformed tremendously. With this generation of internet applications and services, the use of distributed ledger technology has become the norm. For instance, Decentralized Finance (DeFi) became quickly popular and lured many enterprises and startups to adapt. At the center of this development was the emergence of NFT marketplaces that allow people to create, buy, own, and sell unique digital assets.
NFT marketplaces are unique platforms where buying and selling of digital assets occur. Choosing a top NFT marketplace enables you to exchange diverse NFTs. You can exchange cards, online games, virtual real estate, and more depending on your interest and budget. However, taking time to choose the right one can mean the difference between a successful NFT journey and constantly trying to understand how it works.
An NFT marketplace allows you to join the NFT craze, and participate in the sale or purchase of these digital assets. A marketplace is like an Amazon of digital collectibles, including art, paintings, music, and even an entire virtual world. With dozens of marketplaces in existence, it could be difficult choosing one that will meet your needs or address a niche you are interested in. To help you in making the decision, here are some pointers.
The Technology behind NFT Marketplaces
NFT marketplaces use the same blockchain technology that powers cryptocurrencies. For creators, the marketplaces allow them to have a way of selling digital art that might not have had much of a market. They can even get paid fees for subsequent sale of the art although the value of their assets is determined on a speculative basis. While Ethereum is the leading blockchain for NFTs, Aggero uses Near Protocol.
About Near Protocol Blockchain
Near Protocol is a dApp (decentralized application) platform, which focuses on the usability of the developers and users. The blockchain is a key competitor of Ethereum, which is both a proof-of-stake and smart-contract capable blockchain. The technology was built by NeaCollective based on a concept of a community-run cloud computing platform that would host decentralized applications.
As far as digital markets are concerned, NEAR Protocol focuses on addressing the limitation of older blockchain systems. It provides a community of administrated sharded blockchain platforms. The blockchain network runs on Nightshade, which is a Proof-of-Stake (PoS) consensus mechanism, which focuses on offering flexibility and stable fees.
Near utilizes sharding technology to achieve scalability in NFT transactions. The native token, NEAR, is used in the platform to settle transaction fees and store the NEAR crypto platform. You can also use tokens to stake NEAR if you want to become a transaction validator and help in achieving network consensus. Since the blockchain was built to become both developer and user-friendly, features such as account names are human-readable rather than cryptographic wallet addresses.
How NEAR Protocol Works
DApps have dominated the crypto community, from games to financial services. However, scalability is still a problem for most blockchains. This issue has been a concern in older blockchains, including Ethereum and Bitcoin. This is usually brought about by the difficulty of blockchains handling a large number of transactions quickly and within manageable costs.
Newer projects like Near Protocol try to address this issue by building a new blockchain with a different architecture. The solution implemented by Near to the problem is sharding. The sharding strategy allows Near to break up the blockchain into smaller manageable segments. Consequently, this reduces the burden on the network by minimizing computation load, leading to increased transaction throughput.
Near uses a POS system where nodes interested in becoming transaction validators stake their tokens to be considered for participation. The holders may also delegate their stake if they do not want to operate a note. Validators who have larger stakes hold more influence compared to the consensus process. However, validators are chosen through an auction system and selected at every epoch after a 12-hour interval.
DApps can also be built on the Near Protocol, just like on Ethereum. The process is made possible by the protocol’s cloud infrastructure that combines decentralized data storage and serverless computing. With this, Near Protocol operates using hundreds of services located in different parts globally.
Features that Make Near Protocol Unique
The Near Protocol stands out as easy-to-use blockchain technology for NFT marketplaces. The unique features of Near include:
1.? ? ? Sharding Strategy
In any blockchain, nodes usually have three functions. They process transactions, communicate valid transactions, and complete blocks with other nodes to store the history of the network’s transactions. With an increase in the number of transactions, the network grows and becomes more congested. Consequently, it becomes more difficult for the nodes to manage the three functions.
Near overcomes this drawback by using the sharding approach. The strategy allows the network to grow its capacity even as more nodes join. The high utilization of the network results in the nodes dynamically splitting into multiple shards. Then, the computing is parallelized over the shards to reduce the computational load needed for each node.
With the sharding strategy, nodes are not required to run throughout the network's code as is the case with Bitcoin nodes. On the contrary, nodes only run the code relevant to their shards. The approach allows Near Protocol to assume transactions that touch multiple shards like the default behavior of other smart contracts.
2.? ? ? Focus on Decentralization
A blockchain network needs to be permissionless to maintain true decentralization. This means that potential node operations can join freely instead of incentivizing pooling. Near Protocol utilizes threshold proof-of-stake, which is a staking technique that is both predictable and fair. This also encourages wide-scale participation of network members while preventing powerful validators from pooling.
3.? ? ? Usability-first Approach
Near uses a usability-first approach, which is based on a progressive security model. The model allows developers to create a good user experience that resembles web experiences. The founders of Near Protocol prioritize the need for usability to allow developers to create apps that offer both usability and value to their users. The simple onboarding, easy subscriptions, familiar usage, and predictable pricing make the technology user-centric capabilities.
4.? ? ? Governance
The governance of Near Protocol allows for rapid protocol improvement while at the same time retaining the provision of supervision and helpful input towards the community. This approach ensures the independence of the protocol is maintained. In fact, one of the objectives of Near Protocol is to retain community-led creativity by providing efficient execution, adequate representation, and decision-making within the network.
Choosing an NFT Marketplace
An NFT or non-fungible token is a simple representation of ownership of an asset. When you are choosing an NFT marketplace, you need to first decide the kind of digital asset you are interested in. Also consider whether you are interested in creating, selling, or buying an NFT. These factors will help you choose the marketplace that will best suit your needs.
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All digital items, including written words, photos, videos, collector items, or art can be tokenized on a blockchain. A blockchain like Near Protocol allows you to create, sell, or buy NFTs with ease. While Ethereum had for the longest time been the top blockchain for the creation and trading of NFTs, the emergence of Near Protocol, or simply Near, has transformed this space significantly. Near has established itself as a DApp platform, and a key Ethereum competitor. The blockchain places a premium on NFT developers and seeks to enhance user convenience.
Once you decide on the blockchain you will be using, you will also need to consider the type of token supported by the marketplace. While some open and support a wide variety of tokens, others are closed and only utilize specific proprietary tokens. Aggero NFT is a marketplace that allows you to build, sell, and buy your NFT easily. Before creating or opening an NFT marketplace account, fund your blockchain Aggero wallet with the right token or crypto needed to participate in the activities of the site. Also, check to see the kind of security protecting the marketplace, and if it has had issues in the past.
As you evaluate different marketplaces, consider the following factors:
1.? Token Standard Used in the Platform
Although NFT marketplaces may serve the same function, they are not the same. They use different tokens for various reasons. Currently, the most prevalent token standard used by Ethereum-powered marketplaces include:
· ? ? ? ? ERC-721: Pioneers of NFTs ensuring every unit is unique and rare. Ideal tokens for amassing rare collectibles.
· ? ? ? ? ERC 998 – Non-fungible tokens users can compose into complex positions to trade on a single ownership transfer. These can hold uniform fungible units and are ideal when you want to hold a diverse digital asset for long-term gains.
· ? ? ? ? ERC 1155 – Allow users to leverage the same smart contract in holding fungible and non-fungible tokens. Ideal for users who engage in NFT game collectibles that can be in the form of in-game exchangeable assets or fungible tokens used as a transactional currency.
· ? ? ? ? FA Token – A unified token contract interface that supports fungible, non-fungible, transferable, non-transferable, and multi-asset contracts.
2.? Platform’s Verification Process for Users
Scammers and hackers have also been on the move to prey on innocent victims. While NFT marketplaces are still proliferating to the mainstream, you can easily fall victim to impersonators targeting na?ve collectors and buyers. To ensure your investment is safe, you need to check on their verification process. A good verification process should lock out general users and unscrupulous creators from accessing services beyond a certain level.
As far as NFTs are concerned, a creator can tokenize almost anything on a blockchain network. This could be a picture, GIF, artwork, or even music. However, some creators sell these mintable collections without seeing express permission from the original owners. If that is the case, your hard-earned thousands of dollars can easily disappear into thin air.
Choosing a marketplace with a strict and clear verification process is critical to protecting your investment. A good marketplace ought to have a two-factor authentication process, either by biometrics or code. This ensures that only original creators can access their accounts at any given time.
3.? Price Discovery
Most marketplaces have not incorporated the price discovery feature, but checking on the prices is useful to both sellers and buyers. After joining an NFT platform to sell your mintable artwork, you can check on the price discovery to estimate the right rates that attract buyers. Buyers also use this feature to make informed decisions before spending their money on worthless collectibles.
Within a short period, NFTs have gone mainstream. It is only expected a wider adoption will take place in years to come. As the popularity increases, so does the market’s liquidity, which will facilitate a better price across various platforms.
4.? Tokens Fractionalization
Several factors affect the price of an NFT, including the type of art, collector, and coinciding national or local events. Some collectors may even offer exclusive ownership for their mintable art, allowing only one piece to be in circulation. That would make the price as high as the collector deems fit.
One of the ways enthusiasts buy highly prized NFTs is token fractionalization. This means you will only buy part of the NFT instead of taking the whole collectible. The process is beneficial to both sellers and buyers. On one hand, buyers can become part owners of an NFT without having to spend a fortune. On the other hand, sellers can cash out their collectibles in bits and assign appropriate ownerships in the smart contract rather than wait for the highest bidder in an open auction.
Token fractionalization makes NFTs more accessible to almost everyone who can part with the lowest among that a collector is seeking.? This simple concept has enhanced the mass adoption of NFTs, requiring better regulations and policies for the industry.
5.? Wallet Compatibility
An NFT marketplace ecosystem is only complete with an intersection with fiat currency. Whether you are a buyer, seller, or collector, you need to load your wallet before buying or minting NFTs. Therefore, you will want to choose an NFT platform compatible with various wallets or with the wallet you prefer the most. The platform that you choose should have an easy integration process, which is seamless and secure enough to enhance the safety of your funds and give you a good experience. A good marketplace will also provide support to users who prefer using credit cards and other modes of payment.
6.? Additional User Incentives
As NFTs become more popular, it is only expected new NFT marketplaces will emerge, giving you a excessive amount of options. As the options increase, competition will increase and the variety of options expand. When choosing an NFT, go for the one that offers more value when using it. Check for the incentives offered, which may include referral bonuses, discounts, or profit-sharing after unlocking a certain user status. Some marketplace goes further to offer lucrative incentives like allowing buyers to set their commission rates and royalty percentages.
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