A blockchain marketplace is a peer-to-peer system that operates without the need for an intermediary. This system takes advantage of the openness of the ledger as well as an additional layer of trust. Direct, peer-to-peer transactions between buyers and sellers are made possible through the use of a blockchain marketplace, which eliminates the need for middlemen.
Due to the transparency of the system, every transaction as well as every pertinent detail about a service provider and a seller is able to be viewed. There is no room for review fabrication or manipulation under any circumstances. They cannot be altered in any way, and their existence on the blockchain will continue indefinitely.
In addition, there is no problem with payments in a blockchain marketplace because smart contracts are used to transact business there. The transaction will take place once all of the terms have been agreed upon. Straightforward and uncomplicated.
Advantages of Using a Blockchain Marketplace Instead of a Conventional One
The following is a list of the primary elements that make up a blockchain marketplace:
- Price reductions
The use of blockchain technology makes it possible to create environments in which there is no need to place confidence. This helps prevent fraud in a variety of areas, including payments, customer support, shipping the wrong goods, and other areas.
A blockchain marketplace also makes it possible for the entire e-commerce ecosystem to run without the intervention of a middleman. This results in the elimination of any additional fees, as well as complete and unobstructed control and visibility over your brand or product for your customers. There is no algorithm that governs or has a preference for one product over another within a blockchain marketplace. This means that all products are treated equally.
We have seen a number of instances in which the middleman will launch their own version of the product that is selling the best on their platform at a price that is lower than the actual product’s price and will list their product before the actual product in an effort to attract more people’s attention.
A marketplace that uses blockchain technology helps eliminate all of these frauds and stops anyone from stealing your intellectual property and making money off of it.
Steps Involved in Building Your Own Blockchain Marketplace
It is always a good idea to breakdown the product you’re trying to build into smaller pieces. This helps in a better understanding of the product and helps us to cover every feature of the product.
Here are the steps involved in building your own blockchain marketplace:
Step 1: Gather High-level Requirements
The first step is to define your decentralised marketplace on blockchain’s functional requirements. Then, for what it should be capable of, define use cases and user journeys.
Then, divide these use cases into smaller tasks and create a timeline for building the product from start to finish. One of your end goals could be zero commission fees and a peer-to-peer transaction system with open-source code. This would necessitate the creation of an open-source code team as well as other development teams working on creating a peer-to-peer transaction.
Step 2: Design the Marketplace on Blockchain’s Ecosystem
Before they can be used by buyers and sellers worldwide, there must be a set of rules in place regarding the addition of NFTs or other products to the marketplace, the registration process, and so on. Since there are no third-party fees in a decentralised marketplace because there are no servers or centralised controlling entities. It is intended to avoid censorship by allowing buyers and sellers from all over the world to trade freely and cheaply without the involvement of a middleman.
This decentralised market operation has its own set of advantages and disadvantages. It is critical to create an ecosystem in which people can freely trade without being constrained by unnecessary regulations or having to go through a complicated registration process just to access the marketplace on blockchain.
Step 3: Documentation
It takes care of…
- Establishing the framework and the prerequisites
- Making choices about the flow of users
- Controlling and putting the finishing touches on the features
- Quality assurance and control checks
Step 4: Prototyping
This is where user interface and user experience come into play. The overall look and feel of your app are more crucial than they have ever been before. As a consequence of this, prototyping the user interfaces and screen mockups before actually coding and developing the app is extremely important. Before beginning work on the application’s code, developers should ensure that the client is pleased with the prototype designs.
Step 5: Development Stage
The functional needs for the program have been determined ahead of time, and now the developers can begin implementing them. At this time, the requirements for quality or non-functional aspects have also been satisfied.
Step 6: Test And Execute
Testing the back end and front end of the marketplace on blockchain should be a primary focus for us. Testing ought to be carried out in an agile fashion, which entails testing only one section of code at a time before moving on to the next section. This enables us to detect flaws in our code more quickly. The functionality of code can be manually checked by developers using the command-line interface (CLI), or it can be tested automatically by running predefined test cases.
After ensuring that the basic functionalities work correctly, it is time for testing transactions so that we can ensure everything works fine when users purchase items from the marketplace on blockchain.