Tag: NFT Fundamentals

What Are NFT Smart Contracts & How Do They Work?

Posted on by Andrew Amarosa

NFTs, wouldn’t exist without smart contracts, and digital agreements written with computer code and deployed on a blockchain. Their main function is to execute one or multiple actions if conditions are met, often following simple “if/when-then” statements, e.g., if X is true, then Y will happen. 

These programs automate execution, and workflow, and streamline the outcome of an agreement between one or multiple parties without the need for an intermediary. These actions, for example, could be the transfer of funds from one wallet to another, storing an NFT, locking deposited funds into a liquidity pool, and more

NFT smart contracts have an important role in keeping the NFT ecosystem healthy and honest Some of their most important functions include handling royalties, ensuring the NFT is unique and non-replicable, verifying ownership rights, and enabling access to exclusive NFT merchandise or events (NFT projects usually throw around exclusive benefits to those who buy a specific NFT from their collection).

What are NFT Smart Contracts?

The versatility of NFT smart contracts plays a key role in the development of the metaverse and the Web3 industry. 

NFT smart contracts are smart contracts specifically designed to create the relatively complex requirements of NFTs, such as provenance, non-fungibility, authenticity, and the hosting on a blockchain network. 

First, let’s have a quick refresher on what a smart contract is. Then we’ll explore how they’re used in the NFT world. 

Smart Contracts: Benefits and Main Functions

Smart contracts are being applied to a wide variety of industries –home sales, supply chain, data sharing between multiple institutions, digital identity, banking —the list is long. 

For example, blockchain supply chain solutions counter the typical setbacks within this industry (data disparity, labor shortage, reliable shipping source, etc.) using smart contracts to automate the shipping process by keeping track of items, administrating and structuring important data, and performing specific tasks if conditions are met.

Some of the main benefits of smart contracts are:

  • Transparency and trust: they facilitate transactions for multiple users in a network without them having to know or trust each other. Everything is carried out by the smart contract and not the user, and participants in a private and public blockchain can see them.
  • Speed, lower costs, and accuracy: by eliminating intermediaries and paperwork and only executing actions they’re programmed to do when terms and conditions are met.
  • Versatility: smart contracts can be programmed to perform a wide variety of tasks, and can be reprogrammed after being deployed on the blockchain to fix bugs or eliminate vulnerabilities.
  • Security: smart contracts are highly secure programs since transaction records are encrypted.

Creating an NFT with Smart Contracts

Minting an NFT refers to the process of converting digital files, like jpegs, videos, and sounds, into an NFT recorded on the blockchain, making it available for everyone to see and purchase. When you mint an NFT, you’re playing with the underlying smart contract that defines the properties of your asset.

Most people experience minting an NFT through a designed, user-friendly website where all you do is press a button that says “MINT NOW” after connecting a wallet, but you can actually mint an NFT directly from its smart contract.

The smart contract assigns the ownership of the NFT to the buyer, but if they decide to sell it at some point, the smart contract of the NFT will automatically transfer ownership rights to the new owner —if conditions and terms are met. 

If an NFT is minted, NFT marketplaces like OpenSea would use another set of smart contracts to carry out the auction. For example, a popular auctioning method is a Dutch auction, which is usually created using an ERC721 NFT smart contract (explored below).

Minting NFTs has become much simpler than when they were introduced in Ethereum’s early days. SmartMint by Pastel Network, for example, is a no-code way to design and deploy an NFT smart contract. 

NFT Smart Contract Standards

There are several types of smart contract standards for creating NFTs; ERC-721 and ERC-1155 are the most widely common. ERC stands for Ethereum Request for Comment, and they refer to a set of technical guidelines for creating smart contracts or digital assets to run on the Ethereum network. 

ERC-721 is the first standard designed for the creation of non-fungible tokens, and it strictly requires all tokens to be non-fungible and have their own unique metadata. ERC-721 only supports NFTs, and each NFT can only be transferred in a single transaction, which tends to  cause congestion if network activity is high. 

On the other hand, ERC-1155 supports the transfer of multiple batches of NFTs and supports the conversion of fungible tokens (such as ERC-20) into non-fungible tokens, and vice versa. Typically, projects building blockchain games will use ERC-1155 to move their NFTs due to the higher level of versatility. 

Ethereum is the most popular option for creating or using NFT smart contracts. Other blockchain networks can have their own set of NFT smart contract standards. Still, a small problem is that, by not having a universal standard, NFTs created on different networks, such as TRON, for example, cannot be traded on marketplaces that support Ethereum, or Ethereum-related chains only like Polygon.

The Role of NFT Smart Contracts in the Metaverse

The metaverse refers to a digital ecosystem in which creators, artists, players, and anyone can explore virtual landscapes, play, socialize, interact with other users, buy and sell NFTs —and much more. 

The metaverse, popularized by Web3 projects like Decentraland and The Sandbox, is, therefore, an opportunity to bridge the financial world with the digital world, but the physical world also jumps in on the equation; physical real estate can be purchased as NFTs, using an underlying smart contract to carry out the process. 

NFT smart contracts in real estate eliminate the burden of intermediaries and hefty paperwork by granting (and verifying) the ownership and rights of a property to the respective party. One famous example of this is Michael Arrington, the founder of TechCrunch and Arrington Capital, who sold his apartment in Kyiv as an NFT.

Final Thoughts: NFT Smart Contracts and You 

NFT smart contracts are the technical backbone of the digital collectible industry. There are several NFT smart contract templates from different blockchains, each competing to provide the best technical guidelines and feasibility to users, NFT projects, and marketplaces.

That being said, NFT smart contracts are already playing a key role in the development of Web3 beyond PFPs of Bored Apes or digital samurais like Azukies. 

NFT smart contracts underpin a trustless and efficient pathway for everyone in the decentralized world to interact with NFTs. Blockchain gaming projects, companies and corporations from traditional industries such as fashion and food and beverage, and financial entities have taken a stab at what might be the next iteration of the internet —and smart contracts are the main pillar of the ecosystem.

NFTs & Climate Change: How Do NFTs Impact the Environment?

Posted on by Anthony Georgiades

In 2022 the market for non-fungible tokens (NFTs)- tokenized images, music, and items, generated $24.7 billion. Just two years before, total sales were just $82.5 million.

This exponential market growth has led to discussions about whether NFTs harm the environment. Activists have expressed concerns about Proof-of-Work (PoW) blockchains like Ethereum, which have been linked to high carbon emissions. 

However, PoW NFTs don’t cover the entire market. Several NFT projects, such as Oceans and Us, are using blockchain technology to attempt to solve climate change. 

With this in mind, it’s important to consider a balance between environmental sustainability and technological advancements.

How do NFTs affect the environment?

The perception of cryptocurrency’s negative impact on the environment is primarily viewed through Proof-of-Work blockchains like Bitcoin, and specifically for NFTs, Ethereum, which covers 76% of all trading volume. Such networks rely on a process called “coin mining”, which is extremely resource intensive. 

During the coin mining process, computers on a network (also known as miners) race against one another to solve complex problems, with the “winner” receiving the right to confirm a block. Once a block has been confirmed, the miner that has claimed it can collect all gas fees and a reward. 

When the price of a cryptocurrency such as Ether increases, gas fees also rise, and the value of solving a problem is higher. This incentivizes miners to invest more computer power into solving a problem, consequently increasing the amount of power used (and wasted.) It’s estimated that Ethereum miners were using 44.49 TWh per year, or around the equivalent energy of running a house for 2.8 days per transaction. 

These numbers aren’t black and white. NFTs only represent a small portion of transactions on the Ethereum blockchain. Therefore it’s difficult to determine whether they’ve significantly impacted the amount of computer power needed to solve problems. While this doesn’t mean NFTs are carbon neutral, their environmental impact may not be as significant as some numbers make it about to be. 

Additionally, Ethereum has recently moved from a Proof-of-Work model to a Proof-of-Stake (PoS) model, which we’ll cover in greater detail below. 

How Do NFTs’ Impact The Environment Compared to Physical Art

Although NFTs have been in the spotlight for their environmental damage, they may offer an eco-friendly alternative to traditional art. 

Traditional art requires resource-intensive processes, with a return flight from New York to London generating almost 1,000kg of CO2. With every tonne of CO2 released, around three square meters of Arctic ice will melt. 

Physical art also involves extensive production processes, often involving chemicals that can pollute over 10,000 liters of water. These chemicals usually aren’t picked up by treatment plants and can impact the drinking water in cities where a particular piece of art is exhibited. 

The exact numbers for the environmental impact of traditional art are too difficult to calculate, and therefore there are no specific data. That being said, if you look at the creation and distribution of traditional art alone, the carbon footprint is significantly higher than NFTs. 

Let’s consider transport, for example. When an NFT is minted, it can be sent to another individual for a small fee and an even smaller carbon footprint. Compared to this, a physical piece of art would use a cargo truck or aircraft. This doesn’t even include the delivery of materials, which adds even more to the environmental footprint of physical art. 

Proof-of-Stake Is Helping To Reduce NFT-Related Emissions

As mentioned earlier, Ethereum has moved from a Proof-of-Work model to a Proof-of-stake (PoS) model, but what does this mean for NFTs and climate change? 

PoS models use significantly less energy than their PoW counterparts as they don’t require miners to maintain their own mining equipment. With a PoS model, a limited number of powerful nodes run the network validating transactions once they’ve received a certain number of stakes from coin holders.

This prevents the need for large mining operations and lets nodes generate a passive income with staked tokens. Blockchains like Ethereum have now transitioned to a PoS model to reduce carbon emissions, which has made Ethereum 30,00 times more energy efficient. 

NFT Projects Supporting Environmental Change

Most mainstream headlines focus on the environmental damage of NFTs, overlooking projects that are designed to impact the environment positively. While many projects attempt to support the environment, two that have already achieved some success are Greenverse and Moss.Earth. 

Greenverse

Greenverse is a metaverse NFT project designed to help preserve underground resources. The project uses a preserve-to-earn model which tokenizes natural resources. With this model, real-world land is turned into blocks, and each block has an NFT priced on its natural minerals, biodiversity, and carbon emission potential. 

Owners will receive rewards for preserving these resources instead of developing the land. Benefits include biodiversity credits and non-production carbon credits. Greenverse was first pioneered in Jameson Land in Greenland, though it has since expanded to Suriname in South America. 

Moss.Earth 

Moss.Earth is a tech startup looking to help individuals and businesses offset their carbon footprint with tokenized carbon credits. First founded in 2020, Moss.Earth has sent over $30 million to Amazon preservation projects and has announced the release of Moss Amazon NFTs. 

Each NFT grants the owner a piece of land in the Amazon forest, which can be monitored using remote sensing tools created by Descartes Labs. 20% of each sale will be used to maintain the area’s security and provide satellite images. According to Moss.Earth, its NFT collection sold out in less than an hour. 

Final Thoughts: NFTs Need Time To Become Environmentally Friendly

While blockchain-based transactions used for NFTs do some environmental damage, projects are continuously looking for ways to mitigate their environmental impact. For projects like Ethereum, this means moving to a PoS model, while for projects like Greenverse and Moss.Earth, this means using NFT technology to preserve our natural environment. 

Regenerative Finance, or “ReFi,” is the niche cryptocurrency movement that uses the blockchain to solve a variety of climate and Earth-oriented issues. EcoSapiens, for example, is a metaverse enabling its community to combat climate change by tokenizing and creating a market for things such as carbon credits.

NFT’s potential to solve real-world problems is huge, however, as with all novel technology, NFTs must be given time to innovate. Technology we use daily, including smartphones, laptops, and TVs, all started with great environmental demands, but recent technological advancements have allowed us to limit their environmental impact. 

This could be a similar story for NFTs, which have already taken huge strides to limit their environmental impact in just two years since going mainstream. In just a few years, it’s possible that NFTs could not only become carbon neutral but could even help support our fight against climate change. 

How to Buy NFTs on Coinbase

Posted on by Andrew Amarosa

Coinbase is the world’s second-largest cryptocurrency exchange, with over 73 million users. It’s best known for its easy to use interface and in-depth educational resources, making it the perfect exchange for new investors. 

Now, Coinbase has entered the NFT market with Coinbase NFT. Coinbase NFT works as an extension to the traditional Coinbase platform and requires users to re-sign in with their crypto wallet. 

Here is a step-by-step guide on how you can buy NFTs on Coinbase. 

How To Buy An NFT On Coinbase

  1. Start by heading to https://www.coinbase.com/ and creating a Coinbase account. On the login page, enter your email address and “Get started,” or click the Sign In button on the right side of the page. 
  1. Once logged in, click on the NFT tab on the bottom left hand side of the page. This will open a new tab for the Coinbase NFT platform. 
  1. From here you’ll need to sign in again. Click on the “Sign In” button on the top right and select your wallet. MetaMask and Coinbase are the two most popular options. 
  1. After signing in, look at the current trending NFTs or alternatively search for the collection you want to buy an NFT from. 
  1. Click on your chosen collection and select the NFT you want to buy. After clicking on an NFT, you can view its unique attributes, offers, and recent activity. You’ll also be able to see its “Buy Now” price. 
  1. If you want to buy the NFT instantly, click “Buy Now.” Alternatively, you can make an offer slightly lower than the Buy Now price to bag a bargain. 
  1. After placing your bid, the NFT owner will need to accept your offer. Once accepted, the transaction will be made, and the NFT will be sent to your wallet. 
  1. Congratulations! You’ve now purchased an NFT on Coinbase. 

How To Connect With Your Friends On Coinbase

As well as buying NFTs, the new Coinbase market is also introducing a social side to NFTs. Through the Coinbase extension, you can follow friends, look at their recent activity and show off your latest purchases. Here’s how. 

  1. When logged into Coinbase NFT, click on the “Following” tab at the top of your screen. 
  1. Search through the different accounts to follow, or use the search tab to look for your friend’s account. 
  1. Click on the account to look at the NFTs they own or look at their most recent activity to see what they’ve been up to.  

Coinbase NFT: The New OpenSea?

With Coinbase dominating the cryptocurrency industry, could it overtake current NFT exchanges such as OpenSea when it comes to NFT sales? At the moment, it’s a little hard to say. 

Coinbase NFT is still in its Beta phase, and it definitely feels that way. It uses a similar interface to Coinbase, but doesn’t quite have the usability of OpenSea. It lacks the different categories offered by OpenSea and seems a little limited in its offerings, with the main focus being on popular collections. 

That being said, it definitely has the potential to influence the NFT market, especially if Coinbase can successfully convert its new crypto user base to NFTs. 

Coinbase NFT FAQs

Does Coinbase Sell Solana NFTs?

No. As of December 2022 Coinbase only offers Ethereum NFTs. 

Are There Any Selling Fees On The Platform?

Coinbase is currently running an early phase sale program where there are no fees for sales. Fees will be a part of the platform after its Beta phase, though no official date has been released. 

I Have No Experience With NFTs. Can I Still Use Coinbase To Buy NFTs?

Of course. Coinbase makes it easy to buy NFTs with their dedicated wallet. This wallet will already be used as part of your cryptocurrency account, which makes it easy to adapt. You can also learn more about NFTs through the Coinbase Learning Portal. 

What Wallets Can I Use To Buy Coinbase NFTs?

Current wallets include MetaMask, Coinbase, and WalletConnect. 

I’m Experiencing An Issue With My Coinbase NFTs. Who Can I Contact?

You can contact the Coinbase team directly here. Using the support center you can report issues about the product you’re having issues with or contact the support team directly.  

Can I Buy Music NFTs on Coinbase?

No. As of December 2022 music NFTs are not available via Coinbase.

What Are The Most Popular Collections On Coinbase?

Coinbase offers some of the most popular NFT collections, including BoredApeYachtClub (BAYC), CryptoPunks, Otherdeed For Otherside, and More Loot. 

Does Coinbase Offer New Collections?

Yes! Drops are a part of the Coinbase NFT platform and can be found on the “Drops” tab. Each drop has its own countdown and a “Remind Me” button, where you can sign up with your email to be the first to hear about any project updates. You can also view comments from other investors underneath each drop. 

What Does Minting Mean When It Comes to NFTs?

Posted on by Anthony Georgiades

Minting is the process of creating an asset on the blockchain. It’s the process used to create non-fungible tokens (NFTs,) which are blockchain-based tokens that prove ownership of an item such as a piece of music, profile picture, or image. 

They first grew in popularity in 2021, with collections like Bored Ape Yacht Club and CryptoPunks making international headlines for their huge price tags. Since then, brands such as Nike and Adidas have created their collections, doubling the number of collections in just one year. 

So what exactly is minting an NFT? How does minting work, and what does it cost? In this article, we’ll answer each of these questions: how long it takes to mint an NFT, the most famous mints, and how an NFT gas war can impact the minting price.

What Is Minting An NFT?

Minting an NFT is the process of creating an asset stored on the blockchain, where its authenticity and ownership are proven. The blockchain itself can’t be edited, which makes ownership indisputable.

Minting an NFT is usually completed on platforms like OpenSea, which provides users with the tools to mint their collection. In addition to these tools, creators will also need the art they plan to use and details of unique accessories and features. Some general knowledge about blockchain technology is also useful but not essential. 

To mint a collection, creators will need a crypto wallet with the cryptocurrency needed to put their collection on the blockchain. Most NFTs are created with Ether (ETH), though Solana (SOL) and Cardano (ADA) are also popular options. 

After paying all fees and uploading the necessary files to create a new token, the platform you use will register your new asset on the blockchain, which can be listed on exchanges to generate a crypto income,

How Does NFT Minting Work?

Minting For Creators

As a creator, minting an NFT lets creators create scarcity, secondary earnings, and verified ownership. Creators can create limited edition pieces, specialized collections, and more, all of which are validated on the blockchain. 

Minting also lets creators build communities and perks for collectors who buy their NFTs and generate a passive income through “creator fees,” which charge a small percentage of each secondary sale. 

Creators can complete the process on platforms like Solsea and Opensea, which cover all complex coding, allowing creators to focus on the art. 

Minting For Collectors

As a collector, minting allows you to become part of a community. When minting from a new project, collectors become the first-ever owner of a particular NFT. Minting from a new collection is like buying a pack of collectible cards; you never know how rare the NFT will be. 

Minting as a collector requires you to go to the developer’s website. On the website, there will be an option to “Mint.” Connect your wallet, pay all fees, and your NFT will arrive in around 30 minutes. 

How Much Does Minting Cost?

The cost of minting depends on the “gas price” (transaction fee.) This is paid to the blockchain and will vary depending on the time of day and overall activity. Minting an NFT can cost as little as $0.01 but can go as high as $500 to a few thousand dollars. If gas fees are particularly high when minting an NFT, you can always return later to mint at a lower price. Just make sure the collection won’t sell out before then!

How Long Does It Take to Mint an NFT?

Minting an NFT can take anywhere from 30 minutes to 3-4 hours, depending on how experienced you are with the platform. 

The actual minting process is the stage at which your NFT is published. Before minting, you need to create the art for the collection and decide how many NFTs you plan to create and how you plan to promote the collection.

Most Famous Mints

CryptoPunks

CryptoPunks was first released in June 2017 and became the most popular NFT collection of all time. What makes this mint famous is that it was completely free. Anyone with an Ethereum wallet could claim a CryptoPunk.

Following its release, many collections replicated the 10k profile picture trend, and CryptoPunks went on to sell for millions. As of December 2022, CryptoPunks remains the most valuable NFT collection on the planet. 

Quantum 

Quantum is commonly cited as the first NFT ever minted. It was minted in May 2014

(May 2014) on a site known as Namecoin. After its initial mint, Quantum was forgotten about for years until going on auction at Sotheby’s in June 2021, where it sold for over $1 million. 

The Eternal

The Eternal is the fastest-selling NFT collection to be minted, selling out in just seven minutes. It was released by Anthony Hopkins, who partnered with NFT company Orange Comet. It was sold on 13th October and showcased 1000 NFTs consisting of 10 unique animation NFTs and 990 unique images. 

What Is an NFT Gas War?

An NFT gas war is a bit like a bidding contest with too many bidders. It starts when the demand for an NFT is higher than its supply- for example when a popular new NFT collection is released. This increase in demand causes the blockchain to slow, and consequently, some investors tip blockchain validators to speed up the transaction. As a result, the gas fee increases based on the tip. 

To beat other bidders, investors will keep paying higher fees until most investors can’t afford the gas fees. This causes the overall traffic to decrease and prioritizes the highest bidders, which can be frustrating for investors with smaller budgets as it could price them out completely. 

It’s important to note that gas fees will also differ based on the platform and the time of day. In some situations, the gas fee can be higher than the listed sale price of the NFT. Therefore, it’s important you research the gas fee before selling or buying an NFT. 

Final Thoughts: Minting Isn’t As Complex As You May Think 

Minting an NFT isn’t quite as complex as it’s made out to be. While you need to consider factors such as gas fees and the platform to mint, once you have the designs in place, most platforms will take care of everything for you. Be diligent with your research beforehand and ensure that the gas fee is within your budget- the last thing you want to do is bid for an asset only to realize you can afford the gas. 

Minting is a great way to make money as a digital creator. As NFT technology advances, its use cases and widespread adoption will also increase, making it a great time to get involved in the market. 

How Computer Vision Could Help NFT Authenticity

Posted on by Anthony Georgiades

Computer vision is a new field of science that uses Artificial Intelligence (AI) to teach computers how to interpret visual data.

It’s currently used at the forefront of the autonomous vehicles industry to detect and classify objects like road signs, create 3D maps– and, recently, its technology is being explored to verify NFT authenticity.

The NFT market is worth $4.36 billion but has been criticized throughout 2022 due to faults in the minting process and scams. Since July 2021, over $137.6m of crypto assets have been stolen due to rug pulls and other crypto scams, with most investors losing everything in the process. 

Computer vision could help tackle these problems by proving the authenticity of an NFT before a purchase. By proving authenticity, buyers can be confident in their purchases, and NFT scams will be harder to pull off. 

This article will cover what computer vision is, common NFT authenticity issues and scams, and how computer vision can be used to solve them. 

What Is Computer Vision?

Computer vision is the process of creating a digital system that processes visual data in a similar way to people. The idea behind computer vision is to help computers understand images at a pixel level, picking up visual data that can’t be picked up by the human eye. 

The technology is commonly used for:

  • Object classification: When a computer classifies an object in a video or photo and assigns it to a category. For example, the system can help categorize images with a bird, a specific color, or with people in it. 
  • Object identification: When a computer looks through an image or video to identify a particular object. For example, a specific type of rock, the back of a vehicle, or a specific animal. 
  • Object tracking: when a computer looks through a video to search for certain criteria, which will then have its movement tracked. 

Computer vision is currently used in several industries including healthcare, automotive, agriculture, and retail, where it’s used to improve the efficiency of different systems. 

Common NFT Authenticity Issues

Double Minting 

A current issue within the NFT space is double minting. This is when a seller will double-mint their NFT collection.

Phishing

Phishing usually involves a fake ad, email, or pop-up from a website promising a high ROI NFT. To claim this NFT, users will be asked for their private wallet details. Once the scammers have this information, they can steal all NFTs and cryptocurrency in the wallet.

Airdrop

Airdrop scams are extremely common on social media. They usually advertise a free NFT for sharing a post with friends or signing up for an email list. When a user goes to claim their prize, they’re asked for cryptocurrency wallet information for the NFT, which hackers use to gain access to the account. 

Project Impersonations

NFT Iinvestors are sometimes taken advantage of by project impersonators due to the complexity of the industry’s fairly disparate moving parts. 

This is when an individual claims to be selling NFTs from a popular project, usually with an incentive such as a discount. They create a similar-looking website to make the project look legit and then sell a fake NFT to buyers. 

Unfortunately, even the most experienced crypto investors fall for project impersonations, such as Pranksy, who paid more than $336,000 for a fake Banksy NFT. 

How Can Computer Vision Solve NFT Authenticity?

It’s important to note that the result of applying computer vision technology to NFTs is largely speculation. The technology is still in its infancy and we don’t know exactly how it would work, but with that in mind, here’s how computer vision could work if applied to NFTs. 

Firstly, computer vision could solve authenticity by embedding verification codes into an NFTs image. 

This code would be so small it could only be picked up by software and so wouldn’t impact the image itself. Each time an NFT was sold, its authenticity could be verified by scanning it with computer vision software. 

The code would prevent scammers from replicating an NFT as they wouldn’t be able to replicate the code, making it safer for investors to buy NFTs. 

As well as authenticating NFTs on an individual level, NFTs could also be authenticated on a project basis. This would work with computer vision object classification, where an NFT would be classified by a certain project. 

The process would work much like the individual codes, however, would show that an NFT is actually part of a project. Therefore, if a scam project was created users could quickly verify if it’s legit. 

This technology is already being used by the likes of Google Cloud and Mobile Vision APIs, which help developers process images through machine learning models. Through an Optical Character Recognition (OCR) functionality, users can detect text in images that aren’t visible to the human eye. 

It’s also being used by Amazon Rekognition, a video analysis service designed to simplify the analysis process. It’s used to identify text, people, activities, and objects in an image. It’s currently used to detect inappropriate content; however, its technology could be applied to authenticate NFTs. 

Development platforms such as Althea AI and Fetch.ai are currently testing different ways computer vision can impact NFTs through smart computer vision. They’re looking for ways to incorporate language and speech into NFTs to create a dialog with owners. 

If successful, it could be used to authenticate an NFT through unique language exchanges or specific answers to questions that only a real NFT can provide. 

Final Thoughts: Could Computer Vision Be The Future of NFTs?

Although computer vision is yet to be applied to NFTs, it has plenty of potential to help overcome many of the scams currently occurring in the market, making it friendlier for new investors. 

As both NFTs and computer vision continues to innovate, it’s likely they’ll have additional applications for NFTs and Web 3. 

Although few claims are definitive, computer vision is an exciting concept that could play a significant role in adding legitimacy and structure to a rapidly evolving market of digital art.

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