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.

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. 

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 [email protected]

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.