NFT marketplaces work like any other online marketplaces with the distinction that only NFTs are being traded there. Non-fungible tokens can be sold or bought at predetermined prices or through platform auctions. On the side of a client, they work just like ordinary online marketplaces, asking the customer to register and create a digital wallet. Users have to log in by making an account on the marketplace before downloading a crypto wallet that serves to store NFTs. On the side of a seller, after creating an account on the platform, the next step is to list assets by uploading goods to exhibit and putting up digital products for sale. NFT marketplaces provide options for selling, buying, or minting non-fungible tokens. In the crypto world, minting refers to creating novel tokens on the blockchain, most commonly Ethereum.
From a technical point of view, NFT marketplaces operate on transaction protocols, namely on smart contracts. Smart contracts allow networks to stock pieces of information regarding NFT-related transactions, establish a link between the seller and the buyer, and provide other types of information regarding selling or buying tokens. Smart contracts provide proof of ownership and basically mean that a particular digital item is unique and irreplicable. Since smart contracts are self-executing, predetermined conditions must be met and verified for any action to perform. Hence, the whole process of selling and buying NFTs is safer.
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