Saw this somewhere and it’s important to post it here too…
The modern crypto industry has witnessed revolutionary changes, and NFTs have become one of the hottest directions. NFTs are tokens used to represent unique and one-of-a-kind digital assets such as digital art, music tracks, videos, and other digital objects. However, there are several problems that hinder the development of NFTs, such as fraud, copyright infringement, and copying of other projects.
Problems in the NFT space:
a) Fraud: There are many fraudulent projects, with many failing to fulfill their obligations and only aiming to make a profit for their owners.
b) Copyright infringement: Copyright infringement is a serious problem in NFTs. Artists and content creators are unable to protect their work from being copied and distributed without their consent, despite moderation on some platforms for their publication and listing.
c) Copying of other projects: In some cases, NFT creators copy the works of other artists or projects, leading to a loss of trust from buyers and a decrease in the value of NFTs. Some also take advantage of the success of certain projects to create something similar during the hype and then disappear.
d) Competition between NFT sales platforms, which leads to projects suffering, for example, a decrease or cancellation of royalties.
Possible solutions to the problems
a) Verification of project legitimacy: Investors should conduct necessary due diligence to ensure that the project is legitimate. It is important to learn about the project team, review their past experience, partnerships, public reputation, and how they fulfill their obligations… Unfortunately, many things can be fabricated and falsified, and in such situations, new projects without sufficient budget or well-known people on the team can be quite challenging. Therefore, such tools from the network itself or auditors of projects close to the network would be beneficial. And the development of requirements for projects, developed by experienced developers and members of the NFT community.
b) Audit of the project: Conducting an audit of the project helps to detect many security issues or vulnerabilities. It can also help establish the legitimacy of the project and trust in the development team. However, as mentioned above, this should be conducted by truly impartial and competent individuals.
с) Community education: Community education plays an important role in combating fraud and other problems. Investors should be trained to recognize suspicious projects and how to conduct the necessary checks. Content creators should be trained on how to protect their work and rights. Therefore, it would be useful to have a project that provides such consultations.
d) Increasing Transparency and Openness: It is important for NFT projects to be transparent and open. This will help prevent fraud and violations of rights. Projects should provide information about their developers, teams, partners, and financial activities. It is also important for projects to be open to the public and transparently report on their actions. At the very least, this could prevent projects from creating visibility for work that never existed and only exists in their dreams and messages to a gullible audience.
e) Creating Reputation Systems: Creating reputation systems can help combat fraud and rights violations in NFTs. These systems can use data from previous projects and user reviews to create project ratings. This will help users make more informed choices and avoid fraud.
In conclusion, I would like to say that this is only a small part of the problems, and in my opinion, there are many more of them, and there are not many possible solutions provided here.