Cross-chain NFT Marketplace Development and Process

The development of cross-chain marketplaces facilitates the purchase, sale, and minting of NFTs on several blockchains. The combination of NFT’s tamper-proof nature with cross-chain technology improves transaction validation and user confidence, leading to a larger user base. The most significant feature of the cross-chain capabilities is the ability to trade, exchange, and transfer NFTs between chains. This post will discuss why a cross-chain NFT marketplace is necessary.

Cross-Chain Technology In The NFT Marketplace

Interoperability issues have been present in blockchain ecosystems since their inception, but they are becoming increasingly apparent in NFT markets. The term “cross-chain technology” refers to a relative innovation that facilitates the transfer of assets and data between different blockchains. 

Using the cross-chain platform, blockchains like Bitcoin and Ethereum may interact with one another. Because of this, NFT dealers can now trade using coins and NFTs created on other chains. Users of a cross-chain platform face minimal to no resistance while trying to access an extensive library of high-quality NFTs.

The cross-chain marketplace operates across several blockchains and is able to handle the minting and trading of NFTs. Moreover, Opensea’s cross-chain functionality has experienced enhancement to support the minting and trading of NFTs on the Ethereum, Polygon, Solana, and Klaytn blockchains.

NFT Interoperability: For example, if a user mints an NFT on Ethereum, they can only trade it on that blockchain. NFTs can only gain widespread acceptance if more than one chain has the involvement. It is for this reason that cross-chain NFTs are being vigorously investigated, and it is clear that cross-chain platform development is necessary to facilitate their exchange.

Why Do We Need A Cross-chain NFT Marketplace?

The cryptocurrency market suffered from price drops, government crackdowns, and geopolitical worries in 2022. The recent price increase is encouraging because it shows that cryptocurrency can withstand these kinds of pressures. 

However, among all these, the non-fungible tokens turned out to be resilient (NFTs). 

• DappRadar identified $4.7 billion in NFT trades in Q1 of 2023, it identifies around 137.04% volume.
• Despite ETH’s 50% collapse, the top 100 NFT collections were worth $14.8 billion, down 15% from November. 
• The total amount of NFT transactions increased in February, reaching $10.6 billion – it concluded that despite an NFT-wide flaw, this robustness emerged. 

90% of NFTs are Ethereum-based and denominated in Ethereum tokens (ETH). This is problematic since ETH’s high gas costs and the NFTs’ single-chain trading limit their profitability. 

Thus, we need a cross-chain NFT marketplace to overcome the limitations. To facilitate cross-network trading of NFTs, a significant advancement is now in progress. 

• It’s more convenient for both buyers and sellers if a single marketplace can support many chains. 
• Plus, they may use any cryptocurrency (including ones that aren’t native to the network) to mint their own NFTs. 

Below is a list of some of the top cross-chain NFT platforms.

1. Agoran 

Agoran competes with various NFT marketplaces but outranks all of them with its ability to support cross-chains. Platforms like OpenSea, however, do support networks like Polygon and Klaytn, but 90% of its NFT collections are built on ETH in particular. 

To understand the cross-chain marketplace benefit, we can go through the facilities provided by Agoran:

• Agoran’s NFT marketplace targets GameFi because of its unique features, like its ability to exchange NFT products from multiple games.
• It also facilitates the listing and sale of NFT assets from multiple games.
• It lets sellers post assets on other NFT markets, giving them more freedom than existing NFT game marketplaces.

2. AxelarSea

AxelarSea is another cross-chain platform and bridge that offers a centralized trading platform to facilitate extensive NFT usage and token liquidity. With this marketplace, you can easily manage your NFTs across all your chains. AxelarSea simplifies the process of connecting with numerous chains of all parties involved, including buyers, sellers, and NFT creators.

3. Moonbeam

Apart from these two, there are other cross-chain platforms like Moonbeam, whose marketplace includes NFTrade, Treasureland, Moonbeams, TofuNFT, Raresama, and Mintverse. By consolidating features from disparate blockchains like Ethereum, Polkadot, Cosmos, and more, Moonbeam is helping to unify the current user experience and pave the road for the future generation of apps by achieving full interoperability.

4. MetaNFT

This marketplace will solve several problems encountered by existing platforms, such as the difficulty of transferring cryptocurrency between the numerous blockchains in use. MetaNFT has created the “Multicrosschain” router, a method for instantaneously converting cryptocurrencies from one blockchain to another and is tailored to the needs of the NFT ecosystem.

Benefits Of Cross-chain Marketplace

Here is the list of the top 5 benefits.

1. Diverse and extensive collection

The NFT collection from various producers under several blockchain ecosystems is made available via the marketplaces with multiple domains and cross-chain capability.

2. Instant possession

You will have a platform that facilitates ownership transfers between buyers and sellers on different blockchains, even in a cross-chain ecosystem.

3. Smart contract audited

Highly secure as the cross-chain marketplace has undergone a rigorous smart contract auditing process to ensure that all faults and vulnerabilities have been addressed.

4. Reliable information

The NFT marketplace is designed to deliver diverse, effective facts of history about NFTs and traders.

5. Strong return on investment

You may expect a good return on investment from a platform that accepts a wide variety of assets from different domains using the platform’s cross-chain functionality.

Features Of Cross-chain Marketplace

here are some top features of cross-chain nft.

1. Storefront

First impressions are crucial to a product’s success. Thus, to boost the NFT marketplace, it is necessary to create a comprehensive and eye-catching storefront.

2. Security

Given the unpredictability of the current technological landscape—including the possibility of malicious hacking attempts and other intrusions—the marketplace has many levels of security to safeguard all kinds of information.

3. Interoperability

The primary function and ultimate feature of a cross-chain platform is interoperability, which allows for the minting and trading of NFTs across several blockchain networks.

4. Multi-wallet

Creating the NFT platform to work with various wallets means more people may participate in the NFT marketplace and trade NFTs. 

5. API

Depending upon the business model for the NFT marketplace, if any, additional APIs may be incorporated to improve user experience. The growth of many NFT marketplaces is largely attributable to APIs.

How Does Cross-chain Marketplace Work?

To advance the NFT market, the idea of a cross-chain bridge is applied to the NFT marketplace as a whole. Let’s see how cross-chain is employed in this context. 

How Do Cross-chain Bridges Work?

A blockchain bridge connects two separate blockchain networks, facilitating the exchange of data, tokens, and other information across them.

To do this, a mechanism is in place wherein your original assets are pooled, and you are issued an equivalent number of tokens that, because of smart contracts, may be used on the other network. Using these “wrapped” assets, it is possible to transport data, information, and assets between blockchains without any friction.

The blockchain network is built on the principle that information can never be altered once it has been recorded. This concept is combined with cross-chain technology. In an effort to increase youth interest in and participation in the NFT market, the cross-chain idea was introduced. 

Through the use of smart contracts, NFT trading between blockchain networks is made possible. The contract may be canceled and re-uploaded into the original network if necessary. Significant shifts have occurred in the cryptographic field due to this new capability.

Why Choose a Cross-chain Platform Than The Single Chain Platform?

There are, importantly, three reasons why the cross-chain platform is conveniently better than the single platform. In the case of a single-chain platform: 

1. If you want to do business on a particular blockchain, you’ll need the appropriate currency to do so, such as ETH for Ethereum or BNB for Binance Smart Chain, etc.
2. Not all blockchains support smart contracts, and even if they do, the effectiveness of those contracts may vary from one blockchain to the next.
3. Ethereum, where most NFTs are created, is known for its extremely high exchange or gas costs. In some cases, these fees for making a purchase might range from a dollar to a thousand dollars or more.

Because of these disadvantages of a single platform and several benefits that cross-chain delivers (already discussed), it is definitely a better choice. In fact, the cross-chain marketplace is the best because:

1. It is flexible to the new technologies, which is considered as the highlighted property.
2. Its future is interoperable and may increase your brand value.
3. It may help build a better community.

Key Features Of Cross-Chain NFT Marketplace

There are several key features of a cross-chain NFT marketplace such as blockchain interoperability, compatibility, security as well as scalability.

1. Cross-Chain Compatibility

Cross-chain NFT marketplaces are multicchain and enable users to reach a larger pool of NFT, as well as utilize different blockchain ecosystems through unlimited interactions with the blockchain. This facilitates asset flow in a way that leaves no barriers among blockchain networks and extends market opportunities.

2. Interoperability Protocols

Advanced interoperability protocols help to secure and efficient transactions between blockchains to make sure smooth communication and NFT transfer across different networks. These protocols also support smart contract and decentralized oracles to verify cross-chain transactions depending on any intermediaries.

3. Unified User Interface

A natural and integrated interface allows users to handle NFTs on multiple blockchains under a single platform, without switching between different marketplaces. It is a more seamless experience, where users are able to track, trade, and interact with their assets with no technical hassle.

4. Enhanced Security Measures

Robust security mechanisms protect users’ assets and transaction data, mitigating risks such as hacking, fraud, and unauthorized access during cross-chain transfers.

Security features like multi-signature authentication, encrypted transactions, and fraud detection tools enhance trust and reliability.

5. Scalability

Cross-chain NFT marketplaces optimize transaction processing by distributing traffic across multiple blockchains. This reduces congestion, lowers transaction fees, and improves overall efficiency.

With increased scalability, the marketplace can handle a growing number of users and transactions without performance bottlenecks.

6. Decentralized Governance

A lot of cross-chain marketplaces also introduce decentralized governance models, allowing users to contribute to the decision-making process through token-based votes and community-led development. This promotes transparency and that platform upgrades, policies, and fee structures are in accordance with the interests of the community.

7. Cross-Chain NFT Minting

Creators can mint NFTs that are compatible across multiple blockchains, increasing visibility, market reach, and the potential for higher sales.

By eliminating single-chain restrictions, artists and brands can reach collectors on different blockchain networks without additional technical barriers.

8. Integrated Wallet Support

Support for multiple cryptocurrency wallets enables users to store, manage, and transact NFTs across different blockchains effortlessly, improving accessibility and convenience.

Development Stages Of Cross-Chain NFT Marketplace

Building a cross-chain NFT marketplace requires a solid plan, experienced developers with the required tech stacks for it. Each step plays a crucial role in launching the NFT marketplace.

1. Market Research and Requirement Analysis

First, consult with reputed companies like Ideausher to discuss the competitor’s strategy and market like what the users want and what they need, so that you can add those features in your marketplace platform. These features can give investors and users a seamless trading experience.

2. Define the Platform’s Architecture

Enabling cross-chain transactions requires selecting the appropriate blockchain networks and interoperability protocols. Solutions facilitating better scalability and/or transaction efficiency are being witnessed in Layer 1 protocols and Layer 2s (example: Ethereum, Binance Smart Chain, Polygon). The interoperability frameworks make the inter blockchain wireless communication possible and thus Polkadot, Cosmos and Chainlink oracles are used for this purpose.

3. UI/UX Design

A well-designed interface improves user engagement by making NFT transactions seamless across multiple chains. Frontend development frameworks like React, Next.js, and Angular help build a responsive marketplace, while Web3 libraries such as Ethers.js and Web3.js ensure blockchain connectivity. A clean, intuitive design helps creators and collectors navigate the platform effortlessly.

4. Smart Contract Development

Smart contracts handle essential marketplace functions such as minting, buying, and selling NFTs. Solidity, Rust, and Vyper are commonly used to write smart contracts on Ethereum, Solana, and other networks. Auditing tools like OpenZeppelin and Hardhat ensure security, while frameworks such as Truffle simplify development and deployment.

5. Implement Cross-Chain Bridges

Cross-chain bridges allow NFT transfer across various blockchain environments without sacrificing ownership and metadata integrity. Technologies like Wrapped NFTs, Hash Time-Locked Contracts (HTLC), and protocols like Wormhole, RenBridge, and Axelar allow secure asset transfer. Implementation of such technologies avoids liquidity fragmentation and guarantees interoperability.

6. Integration of Crypto Wallets

Seamless wallet integration provides NFT storage, holding, and transfer between chains. Wallet integration support for MetaMask, Trust Wallet, Coinbase Wallet, and Phantom is provided to accommodate a huge user base. Multi-chain functionality through WalletConnect and Web3Auth enables easy and secure transactions.

7. Testing and Quality Assurance

Rigorous testing ensures the marketplace functions seamlessly across different networks. Smart contract audits using tools like CertiK and ConsenSys Diligence help prevent vulnerabilities. Functional, security, and interoperability testing using frameworks such as Jest, Mocha, and Cypress help identify and resolve potential issues before deployment.

8. Deployment and Launch

Multiple blockchain marketplace launches require efficient hosting and decentralized storage. NFT metadata is hosted on IPFS and Arweave, and stable infrastructure is provided by cloud providers such as AWS, Infura, and Alchemy. Phased deployment enables monitoring of performance and gathering of user feedback to implement necessary adjustments.

9. Community Engagement and Marketing

Building an active community increases platform adoption. Engaging with users through Discord, Telegram, Twitter, and Medium helps spread awareness. Incentivizing participation through airdrops, staking rewards, and NFT giveaways encourages creators and collectors to join the platform.

10. Continuous Improvement and Scaling

Regular updates and optimizations keep the marketplace competitive. Analyzing user activity, transaction data, and market trends using analytics tools such as Dune Analytics and The Graph provides insights for growth. Implementing Layer 2 scaling solutions and upgrading smart contracts improves performance as the marketplace expands.

Cost of Development

The cost of developing a cross-chain NFT marketplace depends on factors like blockchain integration, security measures, and feature complexity. Below is a cost breakdown.

Development Steps	Task	Description	Estimated Cost
Market Research & Analysis	Conduct industry research	Analyze trends, user preferences, and competitors	$2,000 – $5,000
Define Platform Architecture	Select blockchains & frameworks	Choose networks like Ethereum, BSC, or Polygon	$3,000 – $8,000
UI/UX Design	Design platform interface	Develop intuitive user experience with React, Next.js	$5,000 – $12,000
Smart Contract Development	Write & audit contracts	Develop and secure contracts using Solidity, Rust	$10,000 – $20,000
Cross-Chain Bridge Integration	Enable interoperability	Implement bridges like Wormhole, RenBridge	$8,000 – $15,000
Crypto Wallet Integration	Add multi-wallet support	Integrate MetaMask, WalletConnect, Phantom	$5,000 – $12,000
Testing & Quality Assurance	Perform security audits	Test smart contracts and overall platform security	$6,000 – $15,000
Deployment & Hosting	Launch on mainnet & store metadata	Use AWS, Infura, or IPFS for infrastructure	$4,000 – $10,000
Community Engagement & Marketing	Build user base	Promote platform via social media & campaigns	$3,000 – $8,000
Continuous Improvement & Scaling	Optimize and add new features	Implement upgrades, analytics, and Layer 2 scaling	$5,000 – $15,000

This is a rough total estimated cost of from $10,000 to $100,000. But this cost can go up based on different requirements like different technologies, programming languages and all.

Future Technologies To Enhance Cross-Chain NFT Marketplace

Emerging trends and technologies are enhancing interoperability, usability and security in today’s cross-chain NFT marketplaces. Some of them are:

1. Advanced Blockchain Bridges

Advanced blockchain bridges are enhancing security and helping NFTs to make transfers efficiently between the blockchain networks. These bridges maintain a hassle-free interoperability where customers can move their asset from one platform to another platform without any hesitation.

2. Layer 2 Scaling Solutions

The addition of Layer 2 platforms such as Immutable X and Optimism is tackling scalability issues by reducing transactional expenses and optimized processing times. This innovation optimizes cross-chain NFT exchanges to be lower-cost and speedier, which is a sigh of relief to both creators and collectors.

3. Decentralized Interoperability Protocols

Building decentralized interoperability protocols is enabling different blockchain networks to communicate with one another and make transactions without the use of central intermediaries. This technology increases decentralization and resilience to cross-chain NFT marketplaces.

4. Artificial Intelligence Integration

Artificial Intelligence is being applied to personalize user experiences, enhance search capabilities, and add predictive analytics to NFT platforms. AI technologies can recommend NFTs based on user behavior and interests to make the experience for engagement and satisfaction more favorable.

5. Implementing Decentralized Storage 

With decentralized storage solutions, such as IPFS and Arweave, security and persistence of NFT data and metadata are assured. The approach minimizes the risk of failure in centralized storage and maximizes data integrity between cross-chain systems.

Top Examples of Cross-Chain NFT Marketplaces

These are some of the famous cross-chain NFT marketplaces among the investors as well as the creators: 

1. OpenSea

OpenSea remains the largest NFT marketplace, with a vast library of digital assets listed on multiple blockchains. As of October 2022, it had achieved $32 billion in all-time sales, representing 79% of total marketplace NFT sales. Recently OpenSea introduced a new feature, OS2 to swap tokens and can seamlessly access both NFTs and tokens all in one place via integrated liquidity aggregators. For this feature, you can now discover, buy and sell both NFTs and ERC20 tokens.

2. Magic Eden

Magic Eden is one of the top Solana NFT marketplaces due to its Web3-first strategy and sharp focus on supporting game developers through its Eden Games initiative. Through October 2022, Magic Eden has enabled $1.83 billion in sales, averaging $124 per sale of an NFT. Magic Eden also boasts over 8,000 collections, and as such, is a deep and varied platform for NFT collectors.

3. Rarible

Rarible is a community-driven, multichain NFT marketplace and supports Ethereum, Polygon, Solana, Flow, and Tezos blockchains. It had clocked $300 million all-time sales in October 2022. It charges a 1% commission on both buyers and sellers per trade and allows creators to set royalties from 5% to 10%.

4. Immutable X

Immutable X is one of the known cross-chain NFT platforms on Ethereum’s Layer 2 scaling solution with gasless transactions and instant confirmations of trades. With a processing capacity of as many as 9,000 transactions per second, scalability is highly increased. Up to the end of October 2022, the platform had recorded all-time sales worth $337 million.

5. LooksRare

LooksRare is a Web3 NFT marketplace focused on community incentives, redistributing 100% of protocol fees to active users. Through October 2022, it had seen $1.62 billion in all-time sales, with an astonishing average NFT sale price of $6,590. The platform also offers staking functionality for its native LOOKS token, with an APY of up to 21.11%.

Wrapup!

In order to advance the whole NFT space, the development of a cross-chain marketplace is essential. This reduces the risks of operating everything on one chain, making them more sustainable. The growth of the particular project usually depends on NFT valuation and crypto acceptance by the businesses. Since the value depends on liquidity and trading ease, when NFTs can be exchanged on a cross-chain marketplace, their liquidity and value increase dramatically, strengthening the crypto industry. 

Build Your own Cross-Chain Nft Marketplace With Ideausher

As an investor and entrepreneur, you must approach the particular NFT marketplace with a long-term perspective. At Idea Usher, you can get expert services and consultancy on crypto and NFT development in one go. We have professionals dedicated to delivering top-notch results with no last-minute surprises.

Get in touch with us now!

Contact Idea Usher at contact@ideausher.com

Or reach out at: (+1)732 962 4560, (+91)859 140 7140

FAQ

Q. How to create an NFT?

A. You can start with Minting your NFT, and for that, you will need your artwork and some cryptocurrency. Next is uploading artwork on the preferred platform, and the system will do the rest for a fee. Since NFTs are integrated into the blockchain, the fundamental technology of digital currencies, the coin utilized is also the currency required for your fees. However, the platform will differ. If your NFT sells, you will receive this cash.

Q. What are you buying with an NFT?

A. This one-of-a-kind asset is what investors are buying when they buy in NFTs, which is a blockchain-signed artwork, not simply the artwork. What sets it apart is precisely the combination of these two elements.

Q. Can you sell NFTs on your website?

A. The current state of NFTs makes selling products directly from your website exceptionally challenging. The easiest way to sell newly created NFTs is through the platform’s built-in marketplace. Shopify is another option to sell NFTs as it supports Ethereum. Shopify handles the payment system for all owners, so you may sell NFTs in your local currency using credit and debit cards, PayPal, Google Pay, Apple Pay, and various cryptocurrencies.

Q. Why do we need a cross-chain platform?

A. When using a cross-chain marketplace, buyers and sellers don’t have to switch between exchanges only to use multiple blockchains. It facilitates traders to build NFTs using any coin, even non-chain-native ones, and allows users to safely and transparently swap NFT tokens across several blockchains.