On top of the fraud and scam issues related to crypto, NFTs also require intellectual property management. Web3 platform Niftyz aims to add legal clarity to the NFT market by using blockchain-verified emails to create and protect NFTs.
The crypto industry is growing remarkably, even in the cornerstones of traditional finance. Take the United Kingdom, for example, where crypto asset holders jumped from 2.1 million in 2021 to almost 5 million in 2022, according to a report released by the Financial Conduct Authority (FCA).
However, it’s hard to say that the growth was all moonlight and roses. As highlighted in the same FCA report, nearly 80% of crypto asset owners do not know who to approach when they have a complaint. This is particularly concerning given the skyrocketing crypto-related fraud losses, which have increased by 41% in the U.K. in the past year, with the FTX collapse being a major contributor to this problem.
The legal landscape faces increasing challenges due to the rise of tech and innovation-related fraud, as well as unmet legal needs. According to LSB research, 3.6 million people in England and Wales have unmet legal needs each year. This includes crypto and its subsectors, such as nonfungible tokens (NFTs).
The rising demand for legal services in the crypto industry is opening up a new market for lawyers. However, the legal system is struggling to keep up with the pace of innovation in the crypto space. Why is this? The main reason is that crypto-related innovation is, by nature, complex and constantly evolving.
For example, the legal aspects of NFTs are challenging to understand. This makes it difficult to determine what the buyer is getting, what the seller can claim after the purchase, or who owns which rights. This uncertainty is a major problem for the NFT market.
NFTs come in various forms, making them complicated to manage from a legal standpoint.
To top it off, the lack of regulatory supervision causes fraud and scams to run rampant in the market, causing newcomers to get even more confused about the credibility of NFTs. In such an environment, even simple tasks such as launching a new NFT collection could become an uphill battle when you factor in the legal support that would be needed in case of IP theft or trademark infringement.
NFT minting via email
Niftyz, a Web3 infrastructure platform backed by Brinc and Animoca Brands, launched a new NFT minting service called Niftyz Send to address the legal concerns in the NFT creation process. Designed as a user-friendly platform for individuals and businesses, Niftyz Send also streamlines processes for law firms and insurance companies, helps them handle the growing number of crypto fraud cases, and enhances access to justice in general.
Niftyz features a user-friendly interface for email-based NFT creation. Source: Niftyz
Since launching a new NFT collection can be a daunting task for Web3 newcomers, Niftyz Send takes a Web2-friendly approach instead by using the familiarity of email connection for minting. Users can transform emails into unique and traceable digital tokens, attach any type of content to them, and mint NFTs with the simplicity of sending a standard email.
Once registered with their emails, users can send and receive blockchain-certified messages as NFTs. Source: Niftyz
Niftyz enables sending NFTs to either wallet or email addresses straight from the email inbox, bringing Web2 platforms into the Web3 era. By simply tokenizing creative work, intellectual property, legal proceedings, insurance policies or sensitive documents, Niftyz Send simplifies IP protection.
Each email gets a transaction ID on the blockchain, which can be publicly checked via a Block Explorer. Source: Niftyz
The platform creates a transparent communication trail for legal proceedings by providing a verifiable source of evidence. Law firms can use Niftyz to send cease and desist letters to creators of unauthorized NFT campaigns, helping to fight against trademark infringement or send legal proceedings to wallets for fraud-related cases. Niftyz also offers public and private dashboards that allow users to keep the content of their NFTs hidden. Additionally, users can tokenize and record legal documents on the blockchain to create an immutable notarization record.
Sound legal transition into Web3
Commenting on the state of Web3 and how it can be improved, Sara Simeone, CEO and co-founder, and Sebastiano Cataudo, chief technology officer and co-founder of Niftyz, told Cointelegraph:
“We see Web3 as a powerful tool capable of reshaping how users and businesses engage, discreetly enhancing communication for increased seamlessness, accountability and transparency. We are committed to making Web3 a seamless technology embedded in our day-to-day life.”
Serving as a user-friendly entry point to Web3 and legal technology, Niftyz Send enables hassle-free interaction with blockchain technology for individuals and law firms, mitigating complexities and making NFT adoption accessible to all. By addressing the limitations and challenges posed by the legal landscape, Niftyz Send paves the way for more efficient, transparent, and accountable legal processes, ultimately enhancing access to justice and reducing unmet legal needs.
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