AI-powered #blockchain analytics aims to protect NFT users from security issues haunting the ecosystem.
The unhinged growth of nonfungible tokens (NFTs) has come with undesirable costs, and the tech sector is stepping up to fix it. In less than a decade, the NFT space has expanded from pixelated punks to an established proof-of-ownership for digital and physical assets. Like decentralized finance (DeFi), another subset of the crypto industry, the NFT market grew without traditional regulatory oversight.
While the uninterrupted expansion enabled true #decentralization across the NFT ecosystem, the lack of standardization caused the same adverse effects that the DeFi space faced during its infancy. The fragmented structure of the current NFT ecosystem leads to confusion for users between different marketplaces, diverse collections and inconsistent pricing methods — turning an informed decision for NFT purchases into a complex task.
Having so many unchecked transactions also leaves the door open for NFT-specific issues, starting with plagiarism, wash trading and copy minting. Without proper standards and toolkits, the NFT ecosystem will continue to witness malignant NFT owners using wash trading to artificially increase NFT prices via fake transactions, copy-minting another creator’s original work, or indulging in other malpractices and foul play.
The unhinged growth of nonfungible tokens (NFTs) has come with undesirable costs, and the tech sector is stepping up to fix it. In less than a decade, the NFT space has expanded from pixelated punks to an established proof-of-ownership for digital and physical assets. Like decentralized finance (DeFi), another subset of the crypto industry, the NFT market grew without traditional regulatory oversight.
While the uninterrupted expansion enabled true decentralization across the NFT ecosystem, the lack of standardization caused the same adverse effects that the DeFi space faced during its infancy. The fragmented structure of the current NFT ecosystem leads to confusion for users between different marketplaces, diverse collections and inconsistent pricing methods — turning an informed decision for NFT purchases into a complex task.
Having so many unchecked transactions also leaves the door open for NFT-specific issues, starting with plagiarism, wash trading and copy minting. Without proper standards and toolkits, the NFT ecosystem will continue to witness malignant NFT owners using wash trading to artificially increase NFT prices via fake transactions, copy-minting another creator’s original work, or indulging in other malpractices and foul play.
Keeping the NFT market secure
The #NFT ecosystem needs to take a leaf out of DeFi’s playbook to hold its ground against the ever-growing security issues and threats. Blockchain analysis tools have so far been helping users to get instant, unbiased information about any DeFi protocol, token or marketplace, effectively ending the “Wild West” era of decentralized finance. With the rise of artificial intelligence (AI) and machine learning (ML), the NFT space is well-positioned to detect security threats and provide users with a safe, accessible and trustworthy experience.
“While NFTs have been around for over seven years now, they were only recently recognized as one of the revolutionary technologies the world has seen,” noted Vijay Pravin Maharajan, the co-founder and CEO of bitsCrunch, a team of data analysts and AI experts focused on blockchain technology. He added that, apart from acknowledgment and development, “this industry needs more trust and transparency in the form of accurate and accessible NFT insights.”
Utilizing AI, bitsCrunch recently launched an NFT analytics and forensic platform named UnleashNFTs to equip users and creators with reliable insights into the NFT market, including NFT marketplaces and fast-growing collections. The in-depth analysis, research and statistics about the NFT ecosystem found on the UnleashNFTs platform aim to help users make informed decisions for each NFT transaction.
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