Last Updated on February 22, 2024 by Hamza Khan
In the constantly changing world of technology and innovation, the introduction of Web3 and blockchain technologies offer revolutionary potential and unprecedented obstacles for brand protection and intellectual property (IP) rights. Due to this, the potential risks of IP fraud and counterfeiting grow as the digital world develops. On the one hand, Web 3’s decentralized structure can democratize interactions and promote a fair economic system; however, it also presents challenges for established businesses and emerging creators. Luckily, AI-powered solutions can help protect brands and companies from issues like IP fraud within the Web 3 blockchain ecosystem.
AI-Powered Solutions For Problems Of IP Fraud In The Blockchain Ecosystem
IP fraud is one of the most pressing issues in the Web3 environment. While brands have built legal and regulatory frameworks to safeguard their IP rights in the conventional Web2 environment, Web3 uses decentralized infrastructures, which complicates IP protection. As a result, bad actors can forge, copy, and steal brand identities without even being detected.
The rapid development of artificial intelligence further takes plagiarism to a whole new level. For instance, a creator’s original work can be copied and traded without permission if the tools and capabilities to verify digital assets’ authenticity are unavailable.
However, although bad actors can use AI to spread false information and deep fakes, this same technology can also help fight fraud. In order to safeguard IP online, many specialized platforms employ methods like picture recognition, data scraping, and others to protect creators.
An example of this is its crunch. It is an NFT data platform powered by AI, and it provides a specialized NFT fraud detection tool. It is called UnleashNFTs and employs AI for price estimates, NFT data analysis, wash trading detection, and NFT forgeries.
BitsCrunch is advancing this technique by developing a decentralized community-oriented NFT data network to enable trustless and permissionless data access. The network’s design will consist of four layers: data processing, data gathering, data query, and data storage.
The platform aims to retain decentralization while ensuring trust. Also, network users can contribute data and algorithms to improve the ecosystem and safeguard Web3 against fraud. The network’s value will increase as it grows and accumulates more data for various use cases, such as fraud detection and NFT valuation.
In order to support communities in making informed decisions, BitsCrunch believes that its decentralized network will set a new standard for data analysis by using precise data. The network aims to attain complete decentralization in the next several years due to its planned multiphase advancement.
Blockchain and AI’s mutually beneficial relationship will prove to be a game-changer in the fight against IP fraud. Brands can strengthen their presence in the Web3 ecosystem and guarantee the security of their important assets by using AI-powered solutions, which will encourage innovation and trust in this new area.