Community is at the center of all blockchain networks. After all, blockchains run because of miners and validators. It is essentially a community of people with technical expertise. Decentralization is essentially about democratizing technology.
Bitcoin blockchain introduced decentralization and transparency into the tech space. The DeFi space took the idea in good faith and expanded on it very well. With NFT token standards and blockchain-based smart contracts, the NFT market has evolved.
The NFT and DeFi space have since collaborated to evolve into DAOs. Decentralized autonomous organizations are service-oriented crypto ecosystems maintained by online communities. And that is the basis of community-centric NFT marketplace development.
What are NFTs?
To have a clearer idea, let’s contrast traditional money with cryptocurrencies. What goods carry a monetary worth in the real world? Securities, bonds, paper money, property, gold, pieces of art, anything regarded as legal tender, etc. How can this be compared to cryptocurrencies, often known as digital assets?
Two digital currencies compared to gold and silver is Bitcoin and Ethereum. Blockchain networks’ native cryptocurrencies are their paper currency. And the stocks, on the other hand, are the various projects that are the crypto tokens. The artworks are NFTs.
NFTs can store almost anything of value. Do you want to keep your home’s deed on a blockchain? Make an NFT out of a replica of that deed. Do you want to publish the style of a new dress you designed to the public? Create an NFT version of the design and sell it on an NFT website. Big fashion businesses no longer have to support you. Do you wish to sell a lot of sports collectibles without having to depend on a bookie? Create an NFT version of such memorabilia and sell it on an NFT marketplace.
NFT marketplaces have grown and will grow in the future. The crypto winter hasn’t slowed things down as everyone expected. And a community-centric NFT marketplace might be an entrepreneur’s dream business.
What is a DAO?
A decentralized autonomous organization is a legal model with no central authority and members committed to acting in the community’s best interests. DAOs are used to make choices in a bottom-up management style and have gained popularity among bitcoin enthusiasts and blockchain technology.
Smart contracts play a big part in DAOs. Decision-making is mandated by these conceptually coded agreements based on underlying blockchain activity. For instance, depending on the outcome of a decision, a specific code may be applied to raise the supply of tokens in circulation, burn a predetermined number of reserve tokens, or give predetermined rewards to token holders already in existence.
There are four aspects of a DAO that needs to be addressed.
And these are the benefits that DAOs promote in a hybrid business and service ecosystem. The most popular NFT marketplaces online are decentralized and managed by online crypto communities. And this makes community-centric NFT marketplace development such an innovative task.
Community-centric NFT marketplace development
Building a community is not like building a business. A community is a group of like-minded people coming together; to work towards a common goal. And a community is necessary for a community-centric NFT marketplace.
Think of DeFi exchange platforms like Uniswap and PancakeSwap. And they are controlled by a DAO. Even though a team of developers is working behind the scenes to maintain the platform. The CEO does not take orders from the shareholders. Why is that? Because the people who hold the crypto tokens are the shareholders of the platform. And token holders govern the network and make sure everything is functioning properly online. And that is what makes it a community-centric space.
PancakeSwap has its own NFT marketplace. Rarible, OpenSea, and SupeRare are all DAOs governing the inner functions of the NFT marketplace. And this is a viable alternative to the current business models. Community-centric NFT marketplaces can exist for a long time, and they are the ones that are quick to adapt to the latest trends.
Why choose Coinsclone for community-centric NFT marketplace development?
Centralization has plagued the business market for a long time. It has its problems and has remained for a long time now. While I don’t believe in a fully decentralized system, it is an option to experiment with. I believe in a balance between centralization and decentralization. And with govt overreach now more prevalent than ever before and with these CBDCs and all, these sorts of ecosystems are much needed.
And here is where progressive businesses like ours can help. We create a platform for everyone to interact with the blockchain and do away with the requirement for technical skills. We have technical specialists in blockchains and their supporting systems across all disciplines. We assist our clients in creating distinctive crypto ventures on several blockchains using smart contracts and dApps. Keep in mind that we are a community-centric NFT marketplace development company.