Numbers x Metaverse
The explosion and euphoria in NFTs over the last year have somewhat been clouded by counterfeiting and fraud.
Over 80% of NFTs minted for free on OpenSea are fake, plagiarized or spam.
OpenSea themselves revealed the shocking statistics after reversing course on a popular feature on their platform. They used to allow the creation of NFTs using “lazy minting”, where users list NFTs for sale without writing them to the blockchain. Sellers don’t pay fees until an NFT sells, allowing scammers to list stolen items in the hopes of selling them onto unbeknown buyers. While other marketplaces allow “lazy minting” too, OpenSea’s popularity and poor vetting system make it an ideal place for bots to lurk.
To curb this they’ve changed their policy to only allow a max of 5 NFT collections with 50 items per collection. However, this doesn’t stop the problem altogether it just minimizes the volume of counterfeiting and fraud.
We aren’t pointing fingers at the Web3/NFT space as we are well aware this is happening in the real world too. Frontier Economics estimates that the global value of counterfeiting and piracy is close to $2.8 trillion annually! And due to supply chain issues from Covid-19, demand for goods- counterfeit or not- has skyrocketed.
The difference between the real world and the NFT space is we have the infrastructure in place to authenticate valuable items. If you were to go into a watch store to buy a Rolex there would be a certificate of authenticity, if you were to go and buy a designer handbag it would come with serial numbers, brand tags or authenticity labels that point to whether you’re buying a real or fake.
It started with NFTs, however, we now have this whole other world being created which possesses a much bigger challenge around user safety, and bodes the question- how do we bring authenticity to the Metaverse?
There’s no doubt in our minds that the Metaverse will see huge adoption. The biggest platform at the moment, Decentraland, currently has a monthly active user base of 300,000 users and 18,000 daily users. Although this number may not seem like a lot, we have the chance of tackling this authenticity problem and minimizing the volume of counterfeiting before the user base gets much bigger.
We understand that we can’t stop counterfeiting all together, but we can put the right protocols in place to warn users of which items are real and which items are fake. It is in this way we put the power and control back into the hands of the users.
How Numbers is Solving This?
NFT Search Engine
The NFT Search Engine provides the full picture of NFTs so that users can more easily see what is good and what is not good in a decentralized way. I mean, one can always check the contract verification on Opensea, but that’s the “centralized” verification controlled by OpenSea.
Numbers NFT Search Engine currently has 2 features that aim to neutralize the fraud we see in the industry.
Multiple token detection: To help users identify how many tokens are associated with the same image.
Web 3.0 badge: To help users check if the NFT has properly stored on Web 3.0, for example, if the asset file is decentralized, if the metadata matches the spec, etc.
We have also partnered with various platforms and marketplaces in order to implement features to clamp down on this problem.
Marketplace Scan: Featured x Numbers
Featured by Binance is a decentralized NFT platform providing creators with the tools to mint, sell and showcase NFT creations. However, as a platform that is still essentially “open” they encountered a lot of scams on the marketplace. The advantages of making it easy and cheap to create NFTs also comes with it’s flaws. It’s also made it easy for questionable actors to copy NFTs from other platforms — typically NFTs from the Ethereum ecosystem such as OpenSea.
After applying various methods to clamp down on this problem such as making it easier for the community to report on scams they knew they had to go bigger! This is where on a regular Friday night, during a catch-up call with Featured — the idea of an integration sparked.
NFT Scan analyses a subset of NFTs at 3 levels:
- The Ethereum scan — this scan looks for items with the same CID in the Ethereum network and returns the product page.
- Similar-image scan — the scan uses a basic AI module to look for similar items in the Ethereum network and returns the associated product page. The key difference between Ethereum scan and Similar-image scan is, Ethereum scan will match the CID of content which means, the content must be exactly the same.
- Community report — the new beta feature. When there are new requests, we share them with the community members and ask for help. They can mark suspicious items and provide the URL as evidence to prove the photo violates copyright.
Through these scans we managed to come to the conclusion that 97% of NFTs on the Featured platform were newly created artworks. We were thrilled at this as it aligned with Featured vision of believing NFTs are for everyone and not just for the privileged who can afford high gas fees.
All of the NFTs that passed the three levels of scan now have a special mark next to their title on each NFT detailed page and if you click on it, it will display a page from Numbers Protocol that lists out scan results.
Scam Detection API: NFTrade x Numbers
On the 17th of December, Numbers partnered with NFTrade to bring authenticity to NFTs. NFTrade is the 2nd largest NFT platform, and the first cross-chain and blockchain-agnostic NFT platform. They are an aggregator of all NFT marketplaces and host the complete NFT lifecycle, allowing anyone to seamlessly create, buy, sell, swap, farm, and leverage NFTs across different blockchains.
The long standing mission of Numbers is to bring Web 3.0 decentralization and interaction to the forefront by helping to showcase digital media created and transacted in a decentralized manner. By working with NFTrade, NFTs issued by the platform will be searchable via Web 3.0 Search Engine, extending Web 3.0 Search Engine’s NFT contract coverage.
Native Web 3.0 Photo App: Capture App
Capture App is still the world’s only blockchain camera app allowing you to create native Web 3.0 photos. The feature allows users to create an NFT from any photo taken using the app.
There are so many issues in the NFT world at the moment so we need to provide enterprise solutions for platforms like NFTrade and Featured that give solutions for people taking photos in Web 2.0 (no traceability, no on-chain proof).
NFT tokens are unique and one of the kind, but you can mint as many NFT tokens from the same file as you want. This makes no sense and does not solve the problem in the Web 2.0 world.
This is why Capture App is so valuable. It helps everyone create native Web 3.0 photos, traceable, with on-chain records, and the files are stored on the decentralized web instead of a centralized server.
These native Web 3.0 photos are the ones that are really going to shine in the Metaverse because they are trustworthy and decentralized.
About Numbers Protocol
Numbers is building a decentralized photo network for creating community, value, and trust in digital media. Its Numbers Protocol redefines digital visual media as assets and is the backbone of a suite of tools for registering and retrieving images and videos in the Numbers network.
- Capture App: The first blockchain camera in the world that users can easily register photos and use Web 3.0 applications.
- Seal API: Developers and enterprises can implement Numbers API to register photos and access their Web3.0 addresses and certificates.
- Certificates: content authenticity certificates with on-chain provenance
- CaptureClub marketplace: Native NFT marketplace which allows photo generators to sell and stake their creations.
- NFT Search Engine: The first Web 3.0 NFT search engine that helps users verify the history of NFTs and prevent potential NFT fraud.
Numbers champion the purity of digital media and enable people to think more critically about the interactions between our images and the world around us. The goal of Numbers is to tokenize authentic photos (including images and videos) to create a decentralized photo network in Web 3.0.