Non-fungible tokens, or NFTs, have gained popularity during the previous two years. This is because they gave a lot of people all over the world new business opportunities. Furthermore, businesses started to think about implementing their concepts in this dynamic environment, and for the vast majority of them, the NFT market appeared as the ideal option.
According to projections, at a Compound Annual Growth Rate (CAGR) of 35.0%, the size of the worldwide NFT market will expand from USD 3.0 billion in 2022 to USD 13.6 billion by the end of 2027. For several different token kinds, OpenSea currently has the largest NFT market. The more well-known businesses that specialise in NFT artwork are Nifty Gateway, Solanart, and SuperRare.
The NFT industry is growing daily, and more individuals desire to work in this industry, thus the numbers are also rising. However, developing an NFT market is a challenging process that requires knowledge, experience, and a full understanding of the niche. Many recent marketplaces failed because they weren't prepared when the development process started.
By outlining the most common issues firms face while establishing an NFT marketplace, our IT experts assisted us in the creation of this guide. By reading this guide, anyone considering creating will benefit from being aware of the NFT issue in 2022 and prepared to handle it to ensure a successful launch.
Major Problems with NFT Marketplaces
Exorbitant and Unexpected Fees
Gas expenses that are astronomically high and unstated are always included in NFT trades. And most beginners are not aware of these. The bulk of NFTs on the market right now are based on the Ethereum blockchain and smart contract-enabling token specifications ERC-20, ERC-721, and ERC-1155. The Ethereum blockchain specifically uses the proof of work method to determine its value. The high gas costs that result from this are one of the main issues with the development of the NFT market today.
Poor customer experience
NFT clients frequently need to search for various crypto platforms and launchpads and face time-consuming sign-up and verification processes because the market is still in its early stages. Some sites additionally need users to provide personal information, such as their government IDs (KYC), phone number, and even address, in order to create a user account.
Additionally, the bulk of NFT marketplaces do not provide training to new consumers, despite the fact that data security will be OK. As a result, users regularly run across issues with account creation, verification, and other procedures. The poor user experience that follows forces them to look for better solutions.
Protection of Copyright that Isn't Good
NFTs are wonderful for any artist who wants to create digital art, fully own it, and make money from it. The issue is the simplicity with which images and other artefacts can be copied and shared online without the producers' consent. The NFT marketplace sector also lacks any legal framework or precedent that may validate or verify the actual ownership of an NFT painting or the following copyright proof.
Lack of Creativity and Expression for Creators
NFT markets were developed to provide artists with a venue to market and sell their works online. However, the bulk of them include several moderating and filtering components that limit the artistic freedom and originality of individuals. Even if this might be acceptable for some tokens, it might cause a complete process disruption for the vast majority of artists that want to utilise your NFT marketplace.
UI/UX considerations are absent
Customer interaction with your marketplace is managed through the user interface, or UI. The aim of high-quality, uncomplicated, and understandable UI is to make User Experience (UX) better and more intuitive. Because of this, the user makes the least amount of effort to achieve the intended outcome.
Because the majority of NFT marketplaces place a higher emphasis on verification, quick development, and safety, UX and UI are essential to the success of your platform (in their perspective). No artist will utilise a bland, outdated UI that blends in and makes it challenging for the artist to generate tokens.
Fortunately, this issue may be quickly fixed by collaborating with a trained team of designers that possess the requisite knowledge. To enable the user to quickly achieve their goal, they will ensure that every component is simple and obvious.
Low-quality customer service
The NFT industry is still in its infancy and needs time for customers to become more aware of its potential and uses, as we just discussed. However, some business owners wrongly think they are industry experts and fail to see the importance of helping their clients. Actually, you can never be certain what drawbacks or issues users may run into when using your platform as you are the only one who is knowledgeable with how it works.
Because of this, it's critical to provide customer care that is available 24/7, prepared to accept any feedback, and prepared to provide each client with the solutions they require.
Make sure your team will provide genuine support to people who need it whenever possible rather than responding with standard templates.
Limited Payment Options
There aren't many different ways to pay in contemporary NFT markets. Despite being able to accept payments from a number of sources, such as credit cards, debit cards, online banking, and a number of wallets, they still do not allow clients to pay using bitcoin. Analysts do, however, believe that this issue may be resolved quickly due to market shifts and rising customer expectations for these platforms.
Industry complication
NFT is a popular phrase right now. This does not, however, imply that everybody is aware of what it is and how it makes money. This is due to the fact that there isn't much non-technical information available about NFT, which makes it appear exceedingly complex to most people. The majority of fascinating markets also make the mistake of attempting to integrate everything in one spot, which makes it difficult for newcomers and disorganised. Users may find it difficult to switch between categories, make decisions, create tokens, and manage payments as a result.
Online fraud risks and cyberthreats
Due to NFT's increasing popularity, the possibility of cyber threats to token holders has also significantly grown. In order to steal money from user accounts or, in some cases, even tokens, many hackers use new techniques. Because of recent technological developments and inadequate software solutions, hackers can still access the platform even though the NFT marketplace uses three or four layers of verification to protect itself.
Large, well-established markets also go through this. Furthermore, there is a large possibility that someone will pose as an NFT designer and sell fake artwork. This is because fake NFT drops, airdrops, giveaways, and copies of well-known NFTs are so common.
Obstacles for Evaluation
This problem regularly arises in the NFT market for users and developers. The right pricing for contemporary artists' work is difficult to determine because it depends on so many different factors, such as the tools used, creativity, audience engagement, the setting of the collection, and more.
Since the NFT market is still in its early stages of development, fixing the price for a certain type of NFT is challenging. Users frequently struggle with knowing how to assess their own work and what standards to use as a result. It is more difficult to evaluate tokens because price swings continue to be persistent.
Legal Difficulties
The NFT market is not subject to government control. Nations including the UK, Japan, and the EU are moving forward with their separate strategies to legally classify NFTs for the purposes of setting rules that may be enacted shortly.
The market's extraordinary growth rate, which will soon force it to rank among the top worldwide industries, is mostly to blame for this. Consequently, the requirement for a regulating body will probably materialize rapidly. A regulatory authority will need to adapt to the laws and policies of a dynamic industry that is always changing because NFTs are being used in a number of scenarios.
The Last Wise Words
The NFT market has grown considerably. As a result, the majority of companies started considering NFT Marketplace Development as the best option to enter this sector. The possible obstacles in building this platform, however, are not known by everyone.