Overview of the NFT Market
- $41 billion market cap in 2021
- $8.9 million made in illicit activities
- Projected to reach over $80 billion by 2025 (Jefferies Group)
In 2021, the NFT industry grew into a multi-billion-dollar market. However, coupled with the explosive growth of the sector, the number of scams has also increased exponentially. According to Chainalysis, an on-chain analytics company, illicit accounts made over $8.9 million in 2021 alone. To combat this issue, NFT marketplaces have deployed several strategies, one of them being “Collection Verification”.
Once an NFT collection reaches a threshold in sales number and has all of its NFTs revealed, the teams may submit the draft files of their NFTs and personal information to begin the verification process. A blue tick is given to a project once the process is completed.
Although this method is effective in most cases, it isn’t without flaws.
Given that there are more than 10,000 collections on these marketplaces, and hundreds more created every day, it’s impossible for the marketplaces to verify all of the collections under their current efficiency. Between the time when NFT collections are put onto the marketplaces and reach the threshold required to be verified, malicious actors come out with identical collections to defraud unknowing buyers.
This exploit can’t be patched without speeding up the process tremendously.
How ITM’s BNS Solution Can Help
By partnering with creative software such as Adobe, BNS can generate on-chain proof of off-chain files whenever a file is created or edited. With an on-chain history of the drafts, NFT marketplaces can cross-reference the timestamps with other information such as payment to the artists from the team’s wallet, Twitter announcements, etc. to further secure the process. Since the information required is mostly online, marketplaces also have the option to connect to the APIs of different platforms to automate and accelerate the process.
Expected Benefits
The implementation of ITM’s BNS solution brings benefits to both NFT marketplaces and creative software companies.
NFT Marketplace
As the market continues to grow, competition is destined to be fiercer than ever. A more secure trading environment can attract more users, which will provide marketplaces with a competitive edge over others on the same playing field. This applies to both the dominant player in the market and a challenger looking to dethrone the king.
Creative Software Companies
For creative software companies, automated information integrity features lower the friction for NFT artists using the platform. In return, NFT artists will choose the software that provides this benefit over its competitors.
Conclusion
ITM believes the NFT market will continue to boom in the coming years, and the number of collections that fit the criteria for collection verification will also grow exponentially. Congestion of the process is almost certainly going to happen if a change is not made. As a strong believer in Web3, ITM puts the security and speed of NFT marketplaces as a top priority. To aid in this cause, ITM is willing to explore all kinds of partnering opportunities with marketplaces and software companies.
If you are interested, you can contact ITM through the following methods:
Email: support@itrustmachines.com
Phone: +886 2 2368–5148
Address: 106台北市大安區基隆路三段130號四樓411室
