The web, as we know it, is evolving, and the latest version of the web is called Web3. It is a quantum leap from what the web ecosystem was. Web3 presents a lot of opportunities for people to become a part of the community that manages the web rather than being controlled by a small centralized organization that controls the web, the information, the revenue, and the flow of power.
It would not be an exaggeration to say that Web3 has opened opportunities for a digital existence as an extension of your real-world existence. Come to think of it, what makes your real-world existence awesome is the uniqueness that you carry along with your life. However, in the original space, uniqueness seems amiss.
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Thanks to the introduction of the digital distributed ledger called the blockchain, people can now have an immutable existence in the Web3 space. This uniqueness is enabled by one of the most prominent manifestations of blockchain technology called non-fungible tokens, commonly abbreviated as NFTs.
What are NFTs?
To understand NFTs, we will need to understand the concept of fungibility. Fungibility is the virtue of an asset by which it can easily be exchanged for another similar asset without any change in its value or its capacity to be broken down into smaller constituents. Non-fungibility is the antithesis of what has been spoken about.
The best example of a fungible token is the $100 bill. The $100 bill can be easily exchanged for another $100 bill without any change in its value, and it can be broken down into smaller… Let’s say… 10 $10 bills. This will not change its value either.
An example of a non-fungible asset is the Mona Lisa. You may have a replica of the Mona Lisa hanging on your bedroom wall but it does not change the value of the original painting by Leonardo da Vinci hanging in the Louver Museum in Paris.
A digital representation of such an asset that exists on the immutable digital ledger called the blockchain is called a non-fungible token. In most cases, non-fungible tokens are unique and they hold, inherently on the blockchain, the pieces of information that attribute its originality and bestow upon the owner, certain credentials and privileges.
What Does the NFT Entail?
While NFTs might seem like simple technical innovations, the kind of revolutionary advantages that they bring is almost jaw-dropping. For instance, one of the biggest problems with the digital world is the loss of fidelity when it comes to attribution. A simple photograph, when emailed or shared multiple times, might end up losing its credibility and attribution to the creator.
With an NFT in place, it becomes easy for creators to track down their creations. It also makes it easy for them to prove their credibility as a creator… Something that is called provenance in the NFT/creator lingo.
NFTs for Creators:
In the Web 2.0 ecosystem, centralized companies like Google, Facebook, and Amazon mediated creativity and its commercial viability. While the hard work, skills, and efforts of the creator were made use of by these platforms to bring people into their websites and mobile ads, the creators only got a small share of the advertising revenue that they facilitated.
This resulted in a heavy loss for creators and it also, more often than not, resulted in the creator losing their claim over their creation.
NFTs and further, Web3 has helped creators gain the rightful remuneration that they have always deserved for their creation. It is not surprising to see some art NFTs get sold for about $70 million on NFT marketplaces. The fact that a lot of artists are releasing their creations – including but not limited to paintings, music, sculpture, videos, and collectibles – as NFTs proves the fact that they are not only dependable but also reliable as sources of income for artists. This is the true creator economy that the Internet aspired for ever since it started!
NFTs for Brands:
NFTs have also helped brands create unique experiences for their most special customers. Some brands have launched unique collectibles in limited numbers for their fans and collectors to flaunt. These collections also entitle the owner to some special privileges like event participation, access to certain special products, and also an element of traceability.
Expanding on Trading NFTs
We have seen that NFTs reside on the blockchain, and they have a permanent place unless they are destroyed by explicit human activity with universal consensus. We have also seen that the identity and the attributes of each NFT are unique and it is permanently and immutably hardcoded on the blockchain.
This opens up opportunities for NFTs to be traded. Just like how Web 2.0 had marketplaces like Amazon and eBay, Web3 will have its own set of marketplaces where NFTs can be bought and sold. In most cases, the NFT is quite likely to be completely unmediated, making it a truly centralized platform.
These NFT marketplaces, however, carry with them, an inherent business opportunity for a crypto/NFT/Web3 entrepreneur.
The Opportunities That Open Up
An NFT marketplace is a wonderful business opportunity because it creates multiple avenues for making a profit for the person who invests in the business. In most cases, the initial investment, although a bit intense, pays off quite easily if you use a sustainable business model with a strategic marketing approach to promote the business.
- The marketplace can charge a commission on every transaction.
- The marketplace can make a profit by being meticulous in the blockchain that it chooses for listing its NFTs. Blockchains with zero gas fees attract more customers.
- A marketplace that supports cross-chain or interoperable NFTs.
- You can also charge minting fees and service costs for every transaction/every NFT.
- Just like any other marketplace, you can also charge a cost for premium/sponsored listings, not only enhancing your profit but also enhancing the visibility of obscured creators.
The Challenge with the Development
While the idea of an NFT marketplace seems promising and profitable, there are certain challenges that might make even the most enthusiastic entrepreneurs think otherwise. Building an NFT marketplace is like making an atomic bomb. You must have all the elements intact and perfect. Any small glitch that might interfere with the basic functionality expected out of the product might topple your profit charts.
Enter White Label NFT Marketplace
What if there was a solution that enabled you to launch your own NFT marketplace without any hassle… And that too, with the promise of a perfect product free from glitches?
This is how a white label NFT marketplace works. Companies that specialize in white label NFT marketplace development will have ready-made products and you can customiz according to your wishes… Both functionally and visually.
This means you get your all NFT marketplace without undergoing the hassle of tedious and cumbersome NFT marketplace development but at the same time, with all the goodness and all the features intact.
Why Go White Label NFT Marketplace?
At a time when almost every aspiring crypto entrepreneur is relying on NFT marketplaces. The time is of crucial importance when it comes to launching your business. NFTs have been immune to the crypto crash in recent times.
It is only natural that people would invest in a space that has been resistive to the chaos and turmoil of the market. With a white label, you save tremendously on time… And in the NFT marketplace business, time is money!
With a white label solution, you dont have to invest in quality control resources as the product has is bug-free. Therefore, your development costs are Likely to stay incredibly low in the long run.
White label solutions do not compromise on customizability. While the engine might be all the same under the hood. You can still garnish your product with any visual element that you want. The much-needed uniqueness of branding in this crowded space of NFT marketplaces.
Conclusion
The recent NFT boom and its immunity to crypto have established the lucrative and promising intensity of an NFT marketplace business. Just by looking at how a lot of major NFT marketplaces have succeeded financially. The fact that a lot of crypto exchanges have taken to launching their own NFT marketplaces.
If you would like to jumpstart your Web3 business, then the white label NFT marketplace development is your way forward! In a snap of a finger, you will be able to launch your own NFT marketplace. And that too, with your brand language reflecting on every page and every element of the platform!
