- Non-fungible tokens are digital assets that verify the ownership of the purchased digital asset.
- NFT exchange platform is the place where investors buy and sell non-fungible tokens.
- NFT exchange platforms are built on blockchain technology.
The crypto world has been shaken up by the arrival of non-fungible tokens. This single system changed the way how the crypto platform has been working till now. The reason for the crypto platform’s massive rise to fame is because the world’s technological field is gradually moving towards the notion of digitization and the eruption of the covid-19 pandemic has multiplied the speed of the conversion process. Now, almost everything is digitized and the majority of the business industries are dependent on the internet. These circumstances amplified the growth of cryptos and NFTs which are proven to have taken over the digital world in terms of digital finance. The field of NFT has transformed into a space for conducting business. Every major business firm is interested in developing its own NFT exchange platform. Business industries can avail of the NFT exchange platform development services from top-tier crypto development companies to launch an NFT exchange platform.
What Is An NFT Exchange Platform?
An NFT exchange is a crypto platform that allows users to buy and sell non-fungible tokens. This platform trades digital artworks, trading cards, image files, music, etc. An NFT exchange platform contains a wide range of non-fungible token collections which acts as a great revenue generator. Due to the platform’s extreme flexibility, it has become a place filled with business opportunities for industries that plan to conduct business in the field of NFTs.
NFT Token Standards
The entire architecture of non-fungible tokens is based on the application of their token standards called the NFT token standards. The commonly used NFT token standards are listed below:
The ERC-721 token standard is the backbone of NFTs. They provide the digital representation of ownership of non-fungible tokens, where every NFT is non-identical and possesses a unique value.
The ERC-1155 token standard is a special token standard. It has the capability to trade both fungible (ERC-20) and non-fungible (ERC-721) tokens. It also reduces the consumption rate of gas fees in the blockchain platform.
The ERC-998 token standard is also called the composable token standard because it enables users to have ownership over multiple NFTs in a single transaction.
The TRC-721 token standard is a non-fungible token standard that is created on the TRON blockchain. It is similar to the ERC-721 token standard. Thus, it has the beneficial factors of providing high transparency, scalability, and security.
Develop Your Own NFT Exchange Platform
Developing an NFT exchange platform has been proven to be the perfect solution for achieving great success in the field of cryptocurrency. This domain is very flexible, it is being implemented in almost all business industries. Thus, it is a great opportunity! Business enterprises can hire NFT exchange platform development companies to launch an NFT exchange platform for them. The most common development methods used by development companies are Whitelabel and clone methods.
The Whitelabel development method is the most preferred method among business industries. The NFT exchange platform can be launched into the digital space at ease by using this development method. It is a market-ready NFT exchange platform. This development method is filled with a wide array of choices. The amount of Whitelabel NFT platforms being developed and kept ready-made depends on the efficiency of the NFT development company. The Whitelabel development method is the most suitable for businesses that focus on short-term profit.
The second method is the clone development method. There are numerous NFT development companies that specialize in clone script development for NFT exchange platforms. In this development method, the NFT exchange platform is developed by using the clone script software. This software replicates the entire functionality of the existing NFT exchange platform that is being chosen by the business enterprise. This method is almost similar to the Whitelabel development method, but the only difference is that Whitelabel is a market-ready platform, whereas, in the clone script development method, the coding is customized based on the customer’s requirements. This exchange platform is suitable for businesses that focus on long-term profit.
Common Features Of the NFT Exchange Platform
- Transactions Per Second
An NFT exchange platform can process a high volume of transactions in very little time without any interruptions.
- Wallet Integration
NFT exchange platform has the potential to support multiple digital wallets for securing and executing smooth transactions.
- Instant Liquidity
This exchange platform is built with a secure API connection which helps users to achieve instant liquidity for non-fungible tokens.
- Optimized Trade Engine
NFT exchange platform is built with an optimized trade engine that provides market order, limit order, and stop order for advanced trading experiences.
The primary specialty of NFT exchange platforms, when compared to other exchange platforms, is the integration of multi-layer security features.
The Role Of the NFT Exchange Platform In the Defi Sector
The Decentralized Finance (Defi) sector is a booming financial sector in the crypto space. The emergence of non-fungible tokens has made it a clear winner in the financial sector. Non-fungible tokens represent unique digital assets that cannot be exchanged or replicated by default. These impressive crypto tokens enable Defi platforms to accept them as collateral. Their distinctive features are the driving force behind the offering of instant liquidity for NFTs in the decentralized platform. This ability is attracting numerous investors into the Defi sector.
The creation of the NFT exchange platform is very vital for the success of the Defi space. Its unique factors have been playing an important role in increasing the traction between investors and the platform. The NFT domain is still a growing platform. Thus, the potential for becoming even greater in the near future is enormous.