Interest in the nonfungible token (NFT) market is growing, reaching new levels, smashing records and setting new all-time highs.
The level of external skepticism also continues to grow. In 2021, total NFT sales reached $25 billion, outperforming the previous four years by 18,400%.
Artists, collectors, fans and celebrities are exploring NFTs to ride the wave that has seen digital artworks exchange hands for astronomical prices. However, there is almost no scrutiny on the influx of new users in this space. Nefarious actors are also on the scene to exploit this developing market’s security and consumers’ vulnerabilities.
From 2020 to 2021, the crypto industry saw an 81% increase in the total value of crypto stolen from victims, with NFT rug pulls and scams contributing generously to this statistic.
Currently, the NFT industry is the digital wild west, filled with buyers, sellers and scammers — all playing the game to come out on top and make the most of the market. Can average consumers and businesses win against these cunning and sophisticated con artists?
The battle against bad actors requires concerted industry-wide efforts from NFT marketplaces and users. According to experts, one of the most effective fraud-prevention methods involves deploying the best tools and systems available on the market. This article will explore viable tools and techniques to help users spot fraud and scammers from a mile away.
How to win against NFT fraud
While scammers are evolving with organizing tactics and strategies to exploit the NFT market, users can also explore innovative tools and systems to set up robust security features.
REV3AL technology is an authentication and copyright protection system that provides a suite of tools to protect NFT marketplaces and users from fraud. Its robust solution begins with its multi-factor certification platform that allows original artists and creators to upload genuine digital artwork and embed multiple layers of encrypted authentication code in the asset.
REV3AL’s proprietary algorithm can detect and flag attempts to duplicate or replicate certified digital assets. For buyers, verifying the authenticity of NFTs becomes as simple and easy as uploading the asset on the authentication platform. It reveals the authentication results in seconds, helping buyers avoid the different scams and frauds in the market and be confident in their purchases.
Integrating REV3AL’s anti-counterfeit API technology with NFT marketplaces will significantly impact scammers’ abilities to commit fraud and copyright theft. The platform adds extra levels of protection against fraudsters while providing a straightforward solution for consumers and platforms.
What lies ahead for NFTs
While digital art is currently the most popular use case for NFTs, its potential extends beyond collecting artwork. NFTs may soon evolve and grow in influence in various industries, including gaming, education, marketing and personal identification.
As the technology develops, NFTs could become an integral part of daily life. The time to get on top of fraud prevention is now, as ever-increasing financial resources are invested in these systems.
Moving past NFT skepticism leads to a bright future where fraud prevention tools reveal critical information to be true or false. REV3AL can become the standard for anti-counterfeit systems in the industry, and its versatility makes it adaptable for multiple traditional NFT and non-NFT use cases.
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