International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 09 Issue: 05 | May 2022
p-ISSN: 2395-0072
www.irjet.net
Challenges of Implementing an NFT Marketplace Yash Mhatre[1], Devansh Dixit[2], Ritesh Salunkhe[3], Dr. Sanjay Sharma[4] [1],[ 2],[ 3] Student, [4} Professor Department
of Computer Engineering, New Horizon Institute of Technology and Management, Mumbai ---------------------------------------------------------------------***--------------------------------------------------------------------clearly. Because it is a peer-to-peer system, no central Abstract - Blockchain is a revolutionary technology and
authority is required to approve or execute operations. NFT tokens have such characteristics and hold values that they cannot be modified. It does not have the same properties as fungible tokens. NFT could be anything online, such as art, gaming, or music. Each bears a digital signature that prohibits NFTs from being substituted for or compared to one another (hence, non-fungible). Nonfungible tokens are virtual tokens that reflect possession of something inherently unique and rare, such as artwork, a music, a collection, an in-game item, or real estate property, whether it is a digital or physical asset. NFT marketplaces are platforms for storing, presenting, trading, and issuing NFTs . Artists can sell their NFT artworks via dedicated marketplaces. Potential buyers can look up through the NFT Marketplace for the NFTs they desire and can easily place a bid on them or buy them.
will have great positive effects in our business environment in the near future. NFT stands for Non-Fungible Token. An NFT can be considered just a digital form of real-world objects like art, music, in-game items and videos. They are traded online, generally with different types of cryptocurrency. Non-fungible tokens traded on an NFT marketplace are different from fungible tokens that are bought or sold on multiple centralized or decentralized exchanges. NFTs are different. Each NFT has a digital signature that makes it impossible for them to be exchanged for another NFT. Each has its own value determined by various factors like metadata, creator, features, etc. The majority of NFTs in the present times are digital, and creators could improvise here in the future and make way for more creative things for the users.. It is very clear that blockchain technology and NFTs can offer the perfect opportunity for artists and content creators to obtain financial remuneration for their works. In this way, artists don’t have to depend on galleries to sell their artwork. Instead, an artist could just sell their work to a buyer in the form of an NFT. This also results in better profit for the artists. Interestingly, Non Fungible Tokens also have the feature of royalties where a certain amount is credited to the original creator of a particular NFT every time the said NFT is sold. Since Blockchain is a relatively newer technology, resources are less and quite difficult to find the perfect one which makes it even more difficult to build a complex NFT Marketplace. NFTs have various use-cases and the NFT marketplace is supposed to be at the core of all those great use cases by providing the users a platform to mint and trade the Non-Fungible tokens.
2 TECHNICAL TERMS 2.1 Non Fungible Token (NFT) A non-fungible token is a non-interchangeable unit of data stored on a blockchain, a form of database, that can be sold and traded with the help of smart contracts. Different types of NFT data units can be used to connect digital media such as pictures, videos, and music. Nonfungible tokens can be used to digitally represent any item, such as online-only assets like digital artwork as well as real-world assets like real estate. 2.2 Smart Contracts Smart contracts are programs stored on a blockchain that run when their functions are called through some middleware libraries. They're typically used to automate the execution of a contract so that all parties can know the outcome straight quickly, without any need for intermediaries or wastage of time. They can also regulate a workflow, initiating the next action when certain circumstances are satisfied. They are used to interact with the blockchain for creating, storing, buying or selling tokens and much more. A token contract's basic functionality includes maintaining track of token holdings, transferring ownership of tokens based on changes in the book of token holdings in the particular token contract, and emitting events to record ownership transfers in the logs. Safe transfer is a technique that allows tokens to be removed (withdrawn) from an address after approval,
Key Words:
Blockchain, Non-Fungible Token, Smart Contract, ERC Standards.
1. INTRODUCTION Non-Fungible Tokens are a non-interchangeable data unit stored on the blockchain with the help of smart contracts. Although, this wasn’t the first use-case for the blockchain technology. Initially, blockchain was only used for financial and trading transactions, but now several studies have shown that blockchain technology can have far bigger applications. This is due to the fact that blockchain technology has a high level of transparency. For example,the total amount of currencies and the volume of transactions in the world can be tracked swiftly and
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