How to Build a Blockchain-based Online Marketplace?
It would be wonderful if there was no middleman involved in peer-to-peer trades. OpenBazaar is the perfect platform to do this. It’s a decentralized eCommerce platform that allows users to list items for cryptocurrency like Bitcoin. Ever wondered how to create an online marketplace using blockchain such as OpenBazaar.
E-commerce offers many advantages over traditional brick and mortar shops. It allows businesses to exponentially increase their reach and reach a larger market. But, convenience comes with a price. The third party is charged a fee to facilitate the payment. Examples include Ali Baba and Amazon as well as other well-known, centralized e-commerce platforms. These e-commerce websites charge outrageous fees. It can take weeks, if not months, to get your money back after a dispute.
What is a Blockchain Marketplace?
Blockchain marketplaces are peer-to-peer systems that eliminate the middleman. They incorporate the ledger’s transparency as well as a layer of trust. A blockchain marketplace allows transactions to be done one-on-one with no central authority.
This is possible for the first-ever time in history because technology has eliminated the need to trust. Transparency allows for every transaction, including all details about service providers and sellers. It is impossible to falsify or alter reviews. They are authentic, indestructible, and will continue to exist on the blockchain for all time.
A blockchain marketplace uses smart contracts to eliminate payment issues. Once the terms have been agreed to, the transaction takes place. It is simple and hassle-free.
Because the transaction is peer-to-peer, rather than being promoted as such by the current share economy, prices are lower. Furthermore, the decentralized nature of blockchains makes it impossible to fail or be weak.
How to create an online marketplace using blockchain?
Now that we have been introduced to OpenBazaar the next step is to create an online marketplace using blockchain-like OpenBazaar. These are some steps that you should follow during the development process.
- Identify the purpose of the project and determine the scope.
- Verification of technical feasibility and proof of concept.
- Ask for feedback from experts in your field and use agile practices.
- Design and development team building.
- Launch and publication of products.
- Marketing the final product.
We will now provide a detailed overview of the development process.
1. Gathering high-level needs is essential
First, you need to identify the functional requirements of your decentralized marketplace. Next, define the use cases and user journeys that it should be capable of.
Then, break down these use cases into smaller tasks and create a timeline to build the product from beginning to end. One example of this is that you may want to have zero commissions and a peer-to-peer transaction system using open-source code as your goal. This would require an open-source team to create it, as well as other developers working on creating peer-to-peer transactions.
2. Create the ecosystem for the market
A set of rules must be in place regarding the addition of NFTs and other products to the marketplace, registration, etc. Before they can be used worldwide by buyers and sellers,
Decentralized marketplaces have no servers and no central controlling entities, so there are no third-party fees. It’s designed to stop censorship and enable buyers and sellers from all parts of the world to trade at a low price without middleman interference.
The decentralized approach to running markets comes with its advantages and disadvantages. It is crucial to create an environment where everyone can trade without being limited by regulations or having to go through complicated registration processes just to access the marketplace.
3. Create an application architectural plan.
Next, you need to learn app architecture and how it can be applied to your specific use case. OpenBazaar architecture has many components. The Transaction Server and Market Server are the most important. These servers can be run on different machines or on different virtual servers (VPS), but they share resources such as memory and CPU depending on the demand.
4. Create a user-friendly interface
It should be simple and easy to use. It should give all information to the user and allow them to quickly scan through the products in the shop. It should be responsive and adaptable for different screen sizes.
5. Create API integration guidelines
If you want your marketplace to have all the features that users demand, it is essential to develop API integration specifications. The API specification should contain the following data types, response formats and response codes. These API specs should also be compatible with the backend microservice code of your marketplace.
OpenBazaar’s main problem is that sellers cannot sell their products on multiple online marketplaces simultaneously. They must create separate stores for each marketplace they wish to be on. This leads to higher marketing costs and revenue loss due to missed marketing opportunities. OpenBazaar allows users to connect their shop to another website, but it is much more complicated than it should. OpenBazaar should be made easier for customers of other websites and app stores to connect with it.
6. Test the marketplace’s back end via programming and testing
It is crucial that we test the back end of the marketplace. Agile testing should be used: one section of code should be tested and then moved on to the next. This allows us to find bugs faster in our code. You can test code by either running automated tests or having developers manually verify its functionality via the command-line interface. OpenBazaar has developed automated tests to ensure that bugs can be quickly identified when new features are added or modified.
- OpenBazaar, an open-source project, aims to create an open-source e-commerce platform that is more accessible, inclusive, and can facilitate frictionless trade. It combines BitTorrent architecture with Bitcoin transactions.
- The OpenBazaar codebase will be used as a base and we’ll then modify it to suit our needs. This is a new method to create a market that is transparent and decentralized.
- OpenBazaar client software can be downloaded for free and is completely open-source. The client uses a peer to peer network similar to BitTorrent and is secured by public-key cryptography. This makes it very difficult to shut down the market.
7. Check out the front-end functionality
Test the front-end features of a decentralized marketplace. This includes adding items to it, listing them in the store and purchasing them back.
You can test transactions
Once we have verified that all the functions work properly, it’s time to test transactions. This will ensure that everything works correctly when customers purchase items from the Marketplace.
First, create an account. Next, download the wallet software. Finally, register on test net to verify that the software works. Once you have created an account, you can start trading goods with other users on your market.
8. Place the marketplace in the production environment
Next, you will need to put your solution into a production environment. Although it can be relatively easy to set up a system for development, it is much more difficult to implement a production system. It must be able to integrate multiple organizations into its existing infrastructure.
Each organization will need to do some integration and administration work, both in-house and with other members of the blockchain. Before you can deploy it successfully, there are some things that you need to pay attention to.
First, establish an internet connection between the machines that run your nodes. This is necessary because they will act as independent peers in the marketplace.
To verify ownership of ERC721 tokens, you will need to provide a way for clients to use your nodes to act as peers.
Building an online marketplace is expensive
After you have learned how to create an online marketplace using blockchain-like OpenBazaar the next question that you will be asking is the cost.
Your location and associated manpower costs will affect the cost of building a blockchain MVP marketplace. Keep in mind that Ethereum DApp development requires a highly skilled skill set. Experienced developers are rare as they are highly sought after. This could lead to an increase in the cost of manpower. Here is a breakdown of the costs involved in building a blockchain project.
Top 3 Blockchain Online Marketplaces
OpenBazaar is the most popular decentralized marketplace for selling and buying online. With no transaction fees, you can list anything and pay in 50+ cryptocurrencies (at the beginning only Bitcoin was accepted). OpenBazaar requires that you first download a program on your computer. This is to ensure that OpenBazaar does not have any central bodies.
BeBee , a personal and professional brand platform built on the Origin protocol, BeBee is often compared to the LinkedIn of blockchain. It has already thousands of users, including individuals as well as forward-thinking companies like Deloitte and Hubspot.
BeBee users have the ability to share and promote their own portfolios and brands. They can market themselves to customers, employers, clients, media, vendors, and other parties using a pull marketing strategy instead of a push marketing strategy.
3. The Bounties Network
The founder of the Bounties Network believes that we will soon be able to bounty any task.
Their current user base is in the thousands. Bounties include content, design, programming, and translation. The team is working to allow businesses to bounty entire departments and processes. You might also consider advertising or programming.
Users can payout in ETH and get bounties. The wallet was pre-loaded when they first signed up. Freelancers have the assurance that their payments are secure, which is a big difference from other freelance sites. Install Meta mask to see the Bounties available.
We hope the blog will answer the question of how to create an online marketplace using blockchain.
The future is in decentralized marketplaces. These marketplaces have the potential to create an open, accessible, inclusive, and frictionless e-commerce system.
Blockchain is one of the most promising technologies of the next decade. It will allow us to decentralize information and make it more accessible for everyone in a secure manner.
Blockchain is booming high. Now is the time to get on board. Blockchain marketplaces may not be perfect, but they are gaining strength and people will realize that they no longer need central companies to make decisions.
Idea Usher has visionaries in the shape of developers and designers with many years of experience in the crypto industry. They are up-to-date on all aspects of decentralized marketplace development. Financial backers can create their own marketplace with our help. The Brisk Logic team includes professional designers who have helped a variety of startups develop blockchain marketplaces. For additional benefits in your business development, take advantage of this opportunity and connect with us. For a quote, please contact us at [email protected]brisklogic.co/.