- NFT faces various severe threats, such as phishing attacks and asset forgeries
- BisCrunch employs several analytical tools to confront the threats plaguing NFTs
- BisCrunch has enhanced the security awareness of users within the NFT community
NFTs (non-fungible tokens) are cryptographic tokens that are discrete from each other and have unique identification depending on the digital asset they are associated with. NFTs can’t be replicated like Bitcoin or Ethereum, making them conducive to representing ownership of a specific digital or physical asset. NFTs have been a powerful innovation, but with their success, there are also underlying security challenges.
Security Challenges In The NFT Ecosystem
NFTs represent valuable digital assets, which makes them an enticing target for forgers. The deceiving nature of assets cleverly claimed through forgery has to be identified to mitigate this issue. Apart from this, speculations and glorified hype in the NFT space can lead to delusional, inflated asset values. Such speculation can result in severe losses for investors.
Wash trading is another major issue where trading volumes are artificially inflated to create a false sense of engaging markets and prosperous liquidity. This unethical, ill-conceived practice of delusional market activity can twist perceived value and harm off guard investors.
Phishing attacks are also quite a perpetual and persistent threat in the digital world. Scammers use their skills to create fake NFT marketplaces to trick users into revealing their private key, which was supposed to be kept under their sleeves and then execute the fraudulent activity.
BitsCrunch’s Role in NFT Security
BitsCrunch came as a much-needed relief in 2020 to safeguard NFT security. Self-claiming itself to be the ‘Guardian of the NFT Ecosystem,’ bitsCrunch stays true to its preaching. With a team of seasoned technological experts with specialized intellectual knowledge in data integrity, data analytics, machine learning and artificial intelligence, bitsCrunch was wholesomely accepted as the frontrunner in the industry.
BitsCrunch offers cutting-edge AI-based analytical tools and solutions to confront and eradicate the threats tormenting the NFT ecosystem. One of the prominent analytical tools leveraged by bitsCrunch is ‘Forgery Detection’. It employs AI algorithms to verify the legitimacy of the crypto assets linked to NFTs, thus helping to eradicate counterfeit NFTs.
The project ‘Asset Valuation’ utilized data analytics to provide a precise and accurate valuation of assets. After having transparent data on asset valuation, investors tend to make more informed decisions. Also, bitsCrunch conducts market surveillance by closely monitoring NFT marketplaces and actively identifying signs of wash trading.
BitsCrunch actively guides users in identifying and avoiding phishing attacks and counterfeit accounts. Through ‘Data Standardization’, it streamlines and standardizes NFT data and makes it more accessible for investors.
Conclusion
The security challenges that NFTs face are evolving with time. BitsCrunch has proven itself to be an effective platform for safeguarding this enticing NFT ecosystem, providing it with various analytical tools and solutions to confront the ill-conceived threats to investors’ finances.
