The NFT market is currently on a roll. While cryptocurrency was the top blockchain product for years, NFTs are giving them a run for their money. Non-fungible tokens (NFTs) are digital representations of data on the blockchain. This representation means that the transfer of assets, especially digital, non-tangible assets, can be done much quicker and with more convenience.
Because of this, NFTs have exploded in value and are being used to sell virtually everything from tweets to memes to digital art, with millions of dollars being paid for the rarer NFTs. While this development is certainly remarkable, the NFT market is far from perfect.
Current Challenges in the NFT Market
On paper, NFTs seem almost perfect-there is only one of each NFT in existence and their data is recorded on a blockchain. In theory, NFTs should be an infallible way to transfer ownership of assets. The reality, however, is a lot more complicated, especially when it comes to counterfeit NFTs.
While there is the appeal of being able to buy rare digital and physical assets as NFTs, practically anyone can mint an NFT and claim it is the original. This has happened in the past that artists have had their works minted and sold as NFTs without their consent in such a case, both the buyer and the artist lose.
The buyer would have spent money on a worthless NFT and the artists would have lost out on revenue. Considering how profitable the NFT space is becoming (an estimated $2 billion was spent on them in Q1 of 2021 alone), it is important that only verified NFTs make it onto the market and not fakes.
Many of the dishonest individuals who sell NFTs often target large platforms and popular creators. Some also target smaller creators who might not have the visibility or resources to fight them, which discourages them from participation in NFTs as a whole.
As the NFT market continues to grow, this issue must be nipped in the bud so as to quell investor suspicions and improve the ecosystem. The good news is that solutions have emerged within the NFT space that are tackling the issues of NFT verification, one of which is BLOCKS.
How BLOCKS Helps NFTs
For the NFT space to fully stamp out fake NFTs, a reliable system of verification needs to be put in place and this is what BLOCKS is providing. How this works is that encrypted metadata is stored on the BLOCKS ecosystem and after this is done, a certificate of authenticity is given to these NFTs for their entire lifetime.
NFTs have a similar challenge to the luxury goods industry in that counterfeits often threaten the genuine products in the market. In response to this, fashion houses often give certificates of authenticity with their luxury products and BLOCKS is providing the same for the NFT space.
The records of the authentic blockchain are stored in the BLOCKS registry and can be referenced at any given time. The implementation of BLOCKS as a tool of authenticity will work in two distinct phases. In the first phase, all verified NFTs will be available for sale on the HUMBL NFT Marketplace.
However, by the second phase, systems will be established that will help NFTs be verified outside of the marketplace. This will be done through the BLOCKS Registry website and also through partnerships with other NFT marketplaces and brands. Users who want to verify their NFTs only need to connect their wallets to BLOCKS after which the algorithm will search out the BLOCKS metadata.
Once this is found, the NFT is then certified as being verified by BLOCKS.
The Wider Implications of BLOCKS
What BLOCKS is doing in the industry is more than just creating an NFT verification platform. In reality, BLOCKS is creating a uniform way for NFT users to enjoy a safer and better market experience. By addressing the issue of counterfeit NFTs head-on, the NFT market can move into a new phase of growth with one of its major issues fixed for the betterment of all.
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