Building an NFT Marketplace on Algorand! | by Scott | May, 2023

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Non-Fungible Tokens (NFTs) have taken the world by storm in the past year, with the total NFT market cap reaching over $3 trillion. NFTs have become a popular way to represent ownership and authenticity of digital assets such as art, music, and collectibles. The Algorand blockchain, with its high speed and low transaction fees, is an excellent platform for building an NFT marketplace.

In this comprehensive guide, we will walk you through building an NFT marketplace on the Algorand blockchain.

Before we begin, it’s important to understand the basic concepts of NFTs and the Algorand blockchain. NFTs are unique digital assets that are stored on a blockchain. They are unique because they contain a digital signature that proves ownership and authenticity. The Algorand blockchain is decentralized and uses a proof-of-stake consensus algorithm to secure the network. The Algorand blockchain can process thousands of transactions per second with a low transaction fee, making it an ideal platform for building an NFT marketplace.

— Step 1: Setup Development Environment
— Step 2: Create the Smart Contract
— Step 3: Integrate with Algorand SDK
— Step 4: Create the NFT Metadata
— Step 5: Mint the NFT
— Step 6: List the NFT for Sale
— Step 7: Buy the NFT
— Conclusion

The first step to building an NFT marketplace on the Algorand blockchain is to set up your development environment. You will need to install the Algorand SDK and the Algorand Sandbox. The Algorand SDK provides tools and libraries that you can use to interact with the Algorand blockchain. The Algorand Sandbox is a local blockchain environment that you can use to test your code.

To install the Algorand SDK, run the following command:

$ npm install algosdk

To install the Algorand Sandbox, follow the instructions provided in the Algorand documentation.

Step 2: Create the Smart

The smart contract is the backbone of your NFT marketplace. It defines the rules for creating and trading NFTs on the Algorand blockchain. In this tutorial, we will create a simple smart contract that allows users to create NFTs and sell them on the marketplace.

We will use TEAL (Transaction Execution Approval Language) to create the smart contract. TEAL is a stack-based programming language that writes smart contracts on the Algorand blockchain.

First, let’s define the state of our smart contract. We will store the NFTs in a key-value store where the key is the NFT ID, and the value is the owner of the NFT. We will also store the price of the NFT in another key-value store.

# Define the state of the smart contract
byte "nft_owner"
byte "nft_price"

Next, let’s define the logic for creating and selling NFTs. We will define two TEAL programs, one for creating NFTs and one for selling NFTs.

# Define the logic for creating NFTs
int 0
txn ApplicationArgs 0
byte "nft_owner"
app_opt_put# Define the logic for selling NFTs
int 0
txn ApplicationArgs 0
byte "nft_price"
App_opt_put

In the first program, we set the owner of the NFT in the key-value store. In the second program, we set the price of the NFT in the key-value store.

Step 3: Integrate with Algorand SDK

Now that we have created the smart contract, it’s time to integrate it with the Algorand SDK. We will be using Node.js and the Algorand SDK for this tutorial.

First, let’s create a new Algorand account to use as the admin account. We will use this account to deploy the smart contract to the Algorand blockchain.

const algosdk = require('algosdk');// Create a new Algorand account
const adminAccount = algosdk.generateAccount();
// Set up Algorand client
const algodClient = new algosdk.Algodv2(

'X-Algo-API-Token': '<your-api-key>',
,
'https://testnet-algorand.api.purestake.io/ps2'
);
// Compile the smart contract
const compiledTeal = await algodClient.compileTEAL(tealCode).do();
// Create the smart contract
const createTxn = algosdk.makeApplicationCreateTxn(
adminAccount.addr,
new Uint8Array(compiledTeal.result),

suggestedParams: await algodClient.getTransactionParams().do(),
totalMicroAlgos: 0,
approvalProgram: new Uint8Array(compiledTeal.result),
clearProgram: new Uint8Array(compiledTeal.result),

);
// Sign the transaction
const signedCreateTxn = createTxn.signTxn(adminAccount.sk);
// Submit the transaction to the Algorand blockchain
const createTxnId = await algodClient.sendRawTransaction(
Buffer.from(signedCreateTxn.blob).toString('base64')
).do();
// Wait for the transaction to be confirmed
const confirmedCreateTxn = await algodClient.pendingTransactionInformation(createTxnId).do();
while (!confirmedCreateTxn.confirmedRound) 
confirmedCreateTxn = await algodClient.pendingTransactionInformation(createTxnId).do();
console.log(Smart contract created with address: $confirmedCreateTxn.applicationIndex);

In this code snippet, we first create a new Algorand account to use as the admin account. We then set up the Algorand client and compile the TEAL code for the smart contract. We then create the smart contract using the `makeApplicationCreateTxn()` method and sign the transaction with the admin account. Finally, we submit the transaction to the Algorand blockchain and await confirmation.

Step 4: Create the NFT Metadata

The NFT metadata contains information about the NFT, such as the name, description, and image. We will be using JSON to define the NFT metadata.


"name": "My NFT",
"description": "This is my first NFT!",
"image": "https://example.com/my-nft.jpg"

Step 5: Mint the NFT

Now that we have created the smart contract and defined the NFT metadata, it’s time to mint the NFT. We will use the `opt-in` mechanism the Algorand blockchain provides to associate the NFT with a specific account.

const mintTxn = algosdk.makeApplicationOptInTxn(
userAccount.addr,
confirmedCreateTxn.applicationIndex,

suggestedParams: await algodClient.getTransactionParams().do(),
payFlags:  totalFee: 1000 ,
appArgs: [
Uint8Array.from(Buffer.from('mint', 'utf-8')),
Uint8Array.from(Buffer.from(JSON.stringify(nftMetadata), 'utf-8')),
],

);// Sign the transaction
const signedMintTxn = mintTxn.signTxn(userAccount.sk);
// Submit the transaction to the Algorand blockchain
const mintTxnId = await algodClient.sendRawTransaction(
Buffer.from(signedMintTxn.blob).toString('base64')
).do();
// Wait for the transaction to be confirmed
const confirmedMintTxn = await algodClient.pendingTransactionInformation
(mintTxnId).do();
while (!confirmedMintTxn.confirmedRound) 
confirmedMintTxn = await algodClient.pendingTransactionInformation(mintTxnId).do();
console.log(NFT minted with asset ID: $confirmedMintTxn.txresults.createdasset);

In this code snippet, we create an `opt-in` transaction using the `makeApplicationOptInTxn()` method. We specify the user’s Algorand account, the application ID of the smart contract, and the NFT metadata as the application arguments. We also specify a `totalFee` of 1000 microalgos to cover the transaction fee. We then sign the transaction with the user’s account and submit it to the Algorand blockchain. Finally, we wait for the transaction to be confirmed and log the created asset ID.

Step 6: List the NFT for Sale

Now that the NFT has been minted, we can list it for sale on the NFT marketplace. We will use the Algorand Standard Asset (ASA) functionality to create a new asset representing the NFT and set a price for it.

// Create the ASA representing the NFT
const assetName = 'My NFT Asset';
const assetUnitName = 'NFT';
const assetTotal = 1;
const assetDecimals = 0;const createAssetTxn = algosdk.makeAssetCreateTxn(
userAccount.addr,

total: assetTotal,
decimals: assetDecimals,
unitName: assetUnitName,
assetName: assetName,
manager: userAccount.addr,
reserve: userAccount.addr,
freeze: userAccount.addr,
clawback: userAccount.addr,
suggestedParams: await algodClient.getTransactionParams().do(),
,

url: nftMetadata.image,

);
// Sign the transaction
const signedCreateAssetTxn = createAssetTxn.signTxn(userAccount.sk);
// Submit the transaction to the Algorand blockchain
const createAssetTxnId = await algodClient.sendRawTransaction(
Buffer.from(signedCreateAssetTxn.blob).toString('base64')
).do();
// Wait for the transaction to be confirmed
const confirmedCreateAssetTxn = await algodClient.pendingTransactionInformation(createAssetTxnId).do();
while (!confirmedCreateAssetTxn.confirmedRound) 
confirmedCreateAssetTxn = await algodClient.pendingTransactionInformation(createAssetTxnId).do();
console.log(Asset created with ID: $confirmedCreateAssetTxn.txresults.createdasset);
// Set the price of the NFT asset
const setAssetPriceTxn = algosdk.makeAssetConfigTxn(
userAccount.addr,
confirmedCreateAssetTxn.txresults.createdasset,

suggestedParams: await algodClient.getTransactionParams().do(),
assetManager: userAccount.addr,
assetReserve: userAccount.addr,
assetFreeze: userAccount.addr,
assetClawback: userAccount.addr,
assetUnitName: assetUnitName,
assetName: assetName,
url: nftMetadata.image,
strictEmptyAddressChecking: false,
strictReceiveAccountChecking: false,
strictGenesisAccountChecking: false,
strictAssetName: false,
strictDecimal: false,
strictTotal: false,

);
// Set the price to 10 Algos
const price = 10;
setAssetPriceTxn.assetParams['price'] = price;
// Sign the transaction
const signedSetAssetPriceTxn = setAssetPriceTxn.signTxn(userAccount.sk);
// Submit the transaction for confirmation
const setAssetPriceTxnId = await algodClient.sendRawTransaction(
Buffer.from(signedSetAssetPriceTxn.blob).toString('base64')
).do();
// Wait for the transaction to be confirmed
const confirmedSetAssetPriceTxn = await algodClient.pendingTransactionInformation(setAssetPriceTxnId).do();
while (!confirmedSetAssetPriceTxn.confirmedRound) 
confirmedSetAssetPriceTxn = await algodClient.pendingTransactionInformation(setAssetPriceTxnId).do();
console.log(Asset price set to $price Algos);

In this code snippet, we first create a new asset representing the NFT using the makeAssetCreateTxn() method. We specify the NFT’s name, unit name, total supply, and number of decimals. We also set the transaction’s suggestedParams using getTransactionParams() method to ensure that it has the latest blockchain parameters. We sign the transaction with the user’s account and submit it to the Algorand blockchain. We wait for the transaction to be confirmed and log the created asset ID.

Next, we set the price of the NFT asset using the makeAssetConfigTxn() method. We specify the asset ID, the user’s account, and the price. We sign the transaction with the user’s account and submit it to the Algorand blockchain. We wait for the transaction to be confirmed and log the price.

Step 7: Buy the NFT

Now that the NFT is listed for sale on the marketplace, we can buy it using Algos. We will use the Algorand Standard Asset (ASA) functionality to transfer Algos from the buyer’s account to the seller’s account and transfer ownership of the NFT asset to the buyer.

// Buy the NFT asset
const buyerAccount = algosdk.generateAccount();const purchaseTxn = algosdk.makeAssetTransferTxn(
buyerAccount.addr,
userAccount.addr,
undefined,
undefined,
1,
undefined,
confirmedCreateAssetTxn.txresults.createdasset,
await algodClient.getTransactionParams().do(),
);
// Sign the transaction
const signedPurchaseTxn = purchaseTxn.signTxn(buyerAccount.sk);
// Submit the transaction to the Algorand blockchain
const purchaseTxnId = await algodClient.sendRawTransaction(
Buffer.from(signedPurchaseTxn.blob).toString('base64')
).do();
// Wait for the transaction to be confirmed
const confirmedPurchaseTxn = await algodClient.pendingTransactionInformation(purchaseTxnId).do();
while (!confirmedPurchaseTxn.confirmedRound) 
confirmedPurchaseTxn = await algodClient.pendingTransactionInformation(purchaseTxnId).do();
console.log(`NFT purchased with ID: $confirmedCreateAssetTxn.txresults.createdasset`);

In this code snippet, we first generate a new Algorand account for the buyer using the `generateAccount()` method. We then create a new asset transfer transaction using the `makeAssetTransferTxn()` method. We specify the buyer’s account, the seller’s account, the asset ID of the NFT, and the price of 1 Algo. We also set the transaction’s `suggestedParams` using `getTransactionParams()` method to ensure that it has the latest blockchain parameters. We sign the transaction with the buyer’s account and submit it to the Algorand blockchain. We wait for the transaction to be confirmed and log the NFT asset ID.

Conclusion

In this blog, we have learned how to build an NFT marketplace on the Algorand blockchain. We have also provided relevant code snippets for each step. By following these steps, you can build a fully functional NFT marketplace on the Algorand blockchain.

Note that this guide is just a starting point, and there are many additional features and functionalities that can be added to the marketplace. For example, you could add the ability for buyers to make offers on NFTs, or you could implement a bidding system for NFTs that allows buyers to compete for ownership.

Additionally, while this guide uses JavaScript and the Algorand JavaScript SDK, you can use any programming language and any Algorand SDK to build an NFT marketplace on the Algorand blockchain.

In conclusion, building an NFT marketplace on the Algorand blockchain is a great way to leverage the security, speed, and efficiency of the Algorand network. With this guide and the Algorand SDK, you can easily create your own NFT marketplace and start buying and selling NFTs today.

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