12 Benefits Of An NFT Marketplace On Cardano
In today’s digital world, various new-age revenue opportunities are unfolding for businesses and entrepreneurs. One such business model that is gaining popularity among businesses and Blockchain enthusiasts is the NFT marketplace.
Any asset such as image, video, clips, trading cards, digital artwork, or other physical assets can be converted into NFT tokens and then can be traded in NFT marketplaces, built on various Blockchain platforms.
Although each Blockchain platform in the digital world is popular for its unique features and capabilities, one such platform that has witnessed huge growth in recent years is Cardano. Several businesses partner with Cardano development company for the NFT marketplace development.
But, what are the reasons for businesses to opt for Cardano over other NFT Marketplace development platforms?
No worries, let’s have look at the key benefits of an NFT Marketplace on Cardano.
What is Cardano?
Cardano is a third-generation proof-of-stake Blockchain platform designed to provide a secure and scalable infrastructure for the development of smart contracts and DApps. It’s an open-source platform that employs a unique approach to decentralization, aiming to make the digital world more accessible, secure, and sustainable.
Cardano’s native token is called ADA, named after Ada Lovelace, a 19th-century mathematician recognized as the first computer programmer. Users from across the globe can use ADA as a secure method for exchanging value, eliminating the need for an intermediary.
Cardano differs from other cryptocurrencies because of its emphasis on scientific philosophy and research-driven approach. It has been designed to be flexible, scalable, and sustainable, making it an ideal platform for running smart contracts – self-executing contracts with the terms of the agreement directly written into code.
What makes Cardano unique is its layered architecture. The settlement layer (CSL) handles the cryptocurrency ADA, while the computational layer (CCL) deals with smart contracts. This dual-layer structure separates the ledger of account values from the reason why values are moved from one account to the other, resulting in more flexibility.
One of Cardano’s primary goals is to redistribute power from unaccountable structures to individuals — and to be a force for positive change. As such, it’s widely used to host globally decentralized applications (DApps) and systems.
Benefits Of An NFT Marketplace On Cardano
Whether you’re a savvy investor, an innovative creator, or a forward-thinking entrepreneur, understanding the key benefits of launching an NFT marketplace on Cardano can help in making informed decision in the dynamic world of digital assets.
Below are the twelve key advantages of an NFT Marketplace on Cardano:
1) Enhanced Scalability
Cardano’s blockchain infrastructure is designed with scalability in mind. It employs a unique layered architecture that separates the settlement layer (Cardano’s native cryptocurrency ADA) from the computation layer.
This division allows Cardano to process a significantly higher number of transactions per second compared to other blockchain platforms, ensuring a smooth and efficient NFT marketplace experience.
2) Reduced Environmental Impact
Unlike Ethereum, which currently relies on a proof-of-work (PoW) consensus mechanism, Cardano employs a more sustainable and energy-efficient proof-of-stake (PoS) consensus algorithm.
By utilizing PoS, Cardano significantly reduces its carbon footprint, making it an environmentally friendly choice for NFT transactions. This approach aligns with the growing demand for eco-conscious solutions and attracts environmentally conscious artists, collectors, and investors.
3) Lower Transaction Costs
Cardano’s PoS algorithm also brings the advantage of lower transaction fees. Ethereum’s high gas fees have been a significant barrier to entry for many artists and collectors, making it less feasible to engage in NFT transactions.
Cardano’s low transaction costs open up new opportunities for artists to showcase their work and for collectors to participate in the NFT marketplace without the burden of exorbitant fees.
4) Improved Security
Cardano’s development team prioritizes security and audits the platform’s code to ensure robustness against potential threats and vulnerabilities.
By leveraging Cardano’s secure infrastructure and unique proof-of-stake consensus algorithm called Ouroboros, NFT creators and buyers can have peace of mind knowing that their digital assets are protected against hacking attempts and unauthorized access.
Enhanced security measures foster trust within the NFT community and encourage wider adoption of Cardano-based NFT marketplaces.
5) Interoperability and Cross-Chain Compatibility
Cardano aims to establish seamless interoperability with other blockchain networks, allowing NFTs to move fluidly across different platforms. This cross-chain compatibility enables NFT creators to target a larger audience by listing their assets on multiple marketplaces simultaneously.
It also enhances liquidity and facilitates secondary market trading, promoting a vibrant and dynamic NFT ecosystem.
6) Empowering Artists and Creators
An NFT marketplace built on Cardano empowers artists and creators by offering them greater control and ownership of their digital assets.
With the use of smart contracts, artists can set specific conditions for their NFTs, such as royalties and usage rights, ensuring they receive fair compensation for their work even after the initial sale.
This opens up new revenue streams for artists and provides them with a platform to showcase their talent directly to a global audience.
Check out tips on how to promote NFT Art.
7) Accessibility and User-Friendly Experience
Cardano’s commitment to user experience extends to NFT marketplaces. By providing intuitive interfaces and easy-to-navigate platforms, Cardano ensures that artists, collectors, and investors of all levels of technical expertise can participate seamlessly.
The user-friendly experience lowers barriers to entry, attracting a wider range of individuals and promoting broader adoption of NFTs on Cardano.
8) Community Governance and Consensus
Cardano is built on a foundation of decentralized governance, giving the community a voice in decision-making processes. This decentralized approach fosters a sense of ownership and inclusivity within the NFT ecosystem.
Artists, collectors, and investors can actively participate in shaping the direction of the marketplace, ensuring that it aligns with their values and needs. Check out here to understand different governance models in blockchain development.
9) Smart Contract Capabilities
Cardano’s blockchain platform supports smart contracts, enabling complex programmable functionalities for NFTs.
Smart contracts automate various aspects of NFT transactions, such as royalties, fractional ownership, and the verification of authenticity.
These advanced capabilities unlock new possibilities for artists and collectors, creating innovative ways to interact with and monetize digital assets.
10) Integration with Real-World Use Cases
The benefits of an NFT marketplace on Cardano extend beyond the digital realm. Cardano’s blockchain can be leveraged to represent ownership of real-world assets, such as real estate, intellectual property, and luxury goods.
By bridging the gap between physical and digital assets, Cardano-based NFT marketplaces enable secure and transparent transactions for a wide range of tangible and intangible assets.
11) Global Reach and Adoption
Cardano has a growing global community that spans across continents. As the platform gains popularity and adoption, artists and collectors can tap into a larger audience of potential buyers and enthusiasts.
The global reach of Cardano fosters diversity, cultural exchange, and the discovery of unique and diverse NFTs from around the world.
12) Potential for Decentralized Finance (DeFi) Integration
Cardano’s architecture provides a strong foundation for integrating decentralized finance (DeFi) functionalities into NFT marketplaces. This opens up possibilities for borrowing, lending, and other financial services within the NFT ecosystem.
DeFi integration can enhance liquidity, provide new revenue streams, and facilitate a broader range of interactions between artists, collectors, and investors.
How to Develop and Launch Your Best Cardano NFT Marketplace?
Leveraging Cardano NFT marketplace development is a strategic approach to building a secure and transparent marketplace to buy and sell unique NFTs.
The following are the necessary steps to build the Cardano NFT marketplace:
Define Your Target Niche
The first step involves defining the target niche for your platform. This could be digital art, virtual real estate, gaming assets, or any other area where NFTs can be used.
Conduct market research to understand user preferences and potential competition in your chosen niche.
Identify User Roles
Specify the roles of different users on your platform. Typical user roles in an NFT marketplace include creators (who mint NFTs), buyers, and sellers.
Clearly defining these roles will help you design the platform’s functionality to meet the needs of each user group.
Design a Blockchain Ecosystem
A blockchain ecosystem consists of all the components necessary for your platform to function, including smart contracts, digital wallets, and data storage solutions.
Cardano’s unique architecture, which separates the settlement and computation layers, allows for flexibility in designing this ecosystem.
Develop Smart Contracts
Smart contracts are self-executing contracts with the terms of the agreement directly written into code. These contracts govern the creation, buying, and selling of NFTs on your platform.
With Cardano, smart contracts can be developed using Plutus, Haskel, and Marlowe programming languages. You can choose any language as per your smart contract development requirements.
Ensure these contracts are secure and efficient.
Integrate Digital Wallets
For users to buy and sell NFTs on your platform, they’ll need a digital wallet. These wallets should be integrated seamlessly into your platform and provide a secure and easy-to-use interface for managing and transferring ADA, Cardano’s native cryptocurrency.
Build the Front-End Interface
This is the part of your platform that users interact with, so it needs to be user-friendly and aesthetically pleasing. The interface should make it easy for users to browse NFTs, as well as create, buy, and sell them.
Features Integration
Cardano NFT marketplace comes up with multiple features. It is vital to add crucial features such as storefront, wallet, bidding options, search filters, etc., to make the marketplace more functional and robust.
Test Your Marketplace
Before launching, thoroughly test your marketplace to ensure all components work together seamlessly. This includes testing the functionality of smart contracts, the security of transactions, and the user-friendliness of the front-end interface.
Launch Your Marketplace
Once you’ve tested your marketplace and made any necessary adjustments, it’s time to launch. Promote your platform to your target audience and continuously gather feedback to make improvements.
By following these steps, you can develop and launch a successful Cardano NFT marketplace that meets the needs of your target audience and stands out in the growing NFT market.
How Much Does It Cost to Develop a Cardano Based NFT Marketplace?
Developing a Cardano-based NFT marketplace can be a lucrative venture, but it’s essential to understand the associated costs.
The cost of developing an NFT marketplace varies widely based on the features, complexity, and the development team’s expertise.
Here is a detailed breakdown of the costs involved:
Basic Development Costs
At a fundamental level, the cost of developing an NFT marketplace can range anywhere from $5,000 to $50,000. This price range primarily includes basic features like user registration, wallet integration, listing and browsing NFTs, transaction processing, and basic security measures.
Advanced Feature Costs
If you plan to include advanced features such as advanced filters for searching, bidding functionality, social sharing, user profiles, and more sophisticated security measures, the cost can increase significantly.
Depending on the complexity of these features, the cost could range from $10,000 to $20,000 or even up to $100,000.
Customization Costs
Customizations can also add to the cost. If you want a unique design, brand-specific features, or integrations with other platforms, these customizations can push your development cost towards the higher end of the range.
Blockchain Transaction Fees
While there is no cost to create an account or an ongoing membership fee on Cardano, the blockchain does charge a commission for each successful NFT transaction. As of now, this is about 2.5%, but it’s essential to consider these costs when planning your budget.
Maintenance and Updates
Post-launch, your platform will require regular maintenance and updates. These could include fixing bugs, updating security measures, or adding new features based on user feedback.
Maintenance costs can range from 15% to 20% of the initial development cost per year.
While the cost to develop a Cardano-based NFT marketplace can vary significantly based on various factors, it’s safe to say that you should be prepared for a considerable investment.
However, with the booming NFT market and Cardano’s growing popularity, this investment could offer significant returns.
8 Examples of NFT Marketplaces Build on Cardano Blockchain
Here are eight examples of NFT marketplaces that have been built on the Cardano blockchain:
- CNFT.io: CNFT.io is the first NFT marketplace built on the Cardano blockchain. It hosts some of the most popular Cardano NFTs like SpaceBudz and Clumsy Ghosts.
- JPG Store: JPG Store is one of the largest Cardano NFT marketplaces. It trades over 60% of all Cardano NFTs, showcasing its popularity and trusted status among users.
- Galaxy of Art: A premier NFT marketplace built on the Cardano blockchain, Galaxy of Art is dedicated to curating and showcasing a diverse range of digital art from emerging artists.
- CADALAB: Launched on the Cardano network, CADALAB is a community-driven NFT DeFi platform building an NFT marketplace.
- Tokhun.io: Tokhun.io is an NFT marketplace that operates on the Cardano blockchain. This platform allows users to mint, buy, and sell NFTs with ease. It’s designed for both seasoned crypto enthusiasts and beginners looking to dip their toes into the world of NFTs.
- Artano: Artano is a platform where artists and art enthusiasts come together. Built on the Cardano blockchain, it offers a space for creators to sell their digital art as NFTs. It’s user-friendly, making it a go-to for those new to NFTs and blockchain technology.
- NftMaker Pro: NftMaker Pro is a simple and straightforward service on the Cardano blockchain that lets you create your own NFTs without needing any prior knowledge of coding or blockchain technology.
- Stale.io: Stale.io is an NFT marketplace on the Cardano blockchain that focuses on sports trading cards. It’s designed to be easy to navigate, even for those who are new to NFTs.
Conclusion
In brief, the advent of an NFT marketplace on Cardano brings forth a range of advantages for artists, collectors, and investors. Enhanced scalability, reduced environmental impact, lower transaction costs, improved security, and interoperability are just a few advantages that make Cardano an attractive choice for the NFT ecosystem.
By leveraging Cardano’s features and capabilities, NFT marketplaces can revolutionize the digital ownership landscape, empower artists, and provide a user-friendly experience to a global audience.
