We are entering a new hype cycle for nfts on youtube there is already a lot of advice for investing in nfts but nobody talks of how to make money in nfts as a developer when you are a developer you have a special skills that investors don’t have and that gives you many more opportunities if you are new here i’m julian and on eat the blogs i.
Teach blockchain development the market for nfcs is booming and a lot of entrepreneurs are building nft projects some of these nft projects have a lot of users for example in august 2021 openc the biggest nfc marketplace had a trading volume of almost 2 billion and since they charge a 2.5 trading fee for each transaction it means they made.
50 million dollar of revenue in single months on top of trading fees a lot of this nft project raised a million from vc funds and with all this money nft companies are able to pay good salaries to blockchain developers there are two kind of nft project nft creators and nft marketplaces so let’s start with nft creators nft creators are the project.
That create nft collections for simple nft collections like artworks created by digital artists it’s pretty simple on most nfc marketplaces anybody can create a simple nft collection with just a few clicks and put it up for sale in this case we don’t need any custom development but where it gets more interesting is for nft collections that.
Are a bit more advanced for example nft collection that are based on generative arts like crypto pen for this nft collection there is an algorithm that generates programmatically the image of each nft and it can get pretty complex this typically requires some custom development there are also nft collection that are part of the game.
Like cryptokitties or actually infinity in this case each nft represent a character or some in-game asset with all sorts of characteristics and you also have all the game logic for example for crypto kitties each virtual kitty can breed other kitties for this kind of use case this is very custom and we need some custom development we have just.
Covered nft creators and beside nfc creators the other part of the industry is nft marketplaces once the nft creator created his collection he or she wants to sell it on a marketplace that’s what we call the primary market and once the primary market is finished nft traders buy and sell nfts from each other that’s what we call the secondary market the.
Primary focus of an nft marketplace is to provide liquidity for this there is a lot of work to be done on the front end nft marketplaces needs to provide a nice user experience for traders for example by showing all the characteristics of nfts by showing a graph of the past trading activities and a smooth ui ux during a purchase if you are good on the.
Front end your expertise can be very valuable most nft marketplaces like decentralized exchanges are non-custodial which means they don’t own the nft of their traders and for this we need to do the trading in smart contracts that’s why nft marketplaces also need expertise in smart contracts and beside your technical expertise if.
You want to work for an nft marketplace you also need to do some research on the main nft marketplaces for this you can check out the nft marketplace ranking of dap radar to see a list of the biggest marketplaces like openc variable super rare study the biggest marketplaces of this list and try to understand what makes them special for example openc is.
The oldest and largest nft marketplace they have a lot of users and a lot of nfts listed it’s a bit like the ebay of nft however the downside is that it can be pretty confusing because of the diversity of nfts there are also some other nft marketplaces that are more specialized like a variable that specializes in digital artwork superwear.
Is another marketplace for digital artwork but a little bit more exclusive or nfc which specializes in the concept of fractionalized nfts so to sum up if you want to work as a developer in the nft industry you need to have solid skills in blockchain development ethereum 3dt truffle metamask integration web3 and the basics of web.
Examples of project for each type and as a bonus it can also help to know a bit about dfi because recently we started to see a new wave of project that introduced some d5 concept to nfts like nft flash loans and when you are ready to start your job search since nft project i consider crypto project you can check out the big job board for.
Crypto like crypto job list working as an employee in the nft sector is only one way to monetize your developer skills and next i will talk of another way to monetize your skill which has even more potential when you’re a blockchain developer you already have a lot of cards in your hand to launch nft project since you already.
Know how to code you don’t need to hire someone to do it which means you need money to launch your own nft project if you are willing to take a bit more risk in exchange for a potential higher upside you can consider creating your own nfc project instead of working for nft project so let’s see where are the opportunities as an entrepreneur in the.
Nft space so the first kind of idea is to create your own nft collection as i told you before there are three kinds of nft collection digital artwork generative art and blockchain game the problem of digital artwork is that you need to have really good skill as an artist and a good following on social media and you don’t really leverage your.
Strength as a developer so i don’t think this is the most interesting opportunity however when it comes to generative art nfts and blockchain nfts there is much more coding involved and as a developer you have a much bigger competitive advantage so that’s why i would recommend to do either generative nft or blockchain game nfts if you choose to.
Launch your own nft collection the most simple is probably generative art nfts for blockchain game nfts you have to think of the gameplay you also have to create a lot of visual assets so there is really more work to do there are two ways to make money when you create your own nft collection first there is the primary market which is when you sell.
Your nfts to buyers for example crypto punks had 10 000 items for sell during their primary sale you can either choose to sell each nft once or sell an nft several time but in this case it’s harder to justify a higher price since the nft is less rare but what do you do once you have sold your initial collection is it over first you don’t.
Need to sell all the nfts of the collection right away you can sell a part of them and keep some for later and if later your project becomes more popular you can sell the remaining nfts for a higher price but you can do even better than that you can have a system of royalties for this we need to talk of the secondary market after the primary.
Market the buyers of your nfts can resell their nft to other buyers normally you don’t see any of that money the new buyer pays the seller and that’s it but recently nft marketplaces introduced the concept of nft royalties if you set up royalties for your nft collections you get a percentage of each sale on the secondary market these allow.
You to have some passive income after the primary market so to sum up if you decide to create your own nft collection i recommend to either focus on generative art nft or blockchain game nfts you make money both with the primary and secondary market beside creating your own nft collection there is also another way to be an.
Entrepreneur in the nft space it’s by creating your own nft marketplace in terms of potential nft marketplace offers even more upside than an nft collection in the previous section i mentioned that openc the largest nft marketplace generated 50 million dollar of trading fees in august so clearly you can make a lot of money.
With an ft marketplace an rft marketplace relies on a network effects the more users the more attractive it becomes that also means it gets exponentially harder for competitors as the main marketplaces get more user one way to get around this problem is by serving a specific niche for example you could be focused on generative up nfts.
Or blockchain game nfts or you could be more innovative with the way you sell nfts like nftx which sell fractionalized nfts which means that instead of traders buying a whole nft traders can buy a fraction of nft at a much smaller cost which is good for liquidity another interesting idea is to introduce defy concept to the nft world we start to see.
Some project introduce flashlights for nfts liquidity mining as well as lending and borrowing so now you know how you can make money with nfts as a developer it doesn’t prevent you from also investing in nfts but don’t just invest in nfts you should also explore these unique opportunities you have as a developer and currently we are in a hype.
Cycle for nfts the timing is perfect in this video i mentioned that it’s possible to create a passive income stream with nft royalties with nft royalties you will keep receiving payment even after the initial sale of your nft if you want to learn how you can create nft royalties in u3 smart contract check out this video i will see.
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