Since the advent of Non-Fungible Tokens (NFT) in 2014, the technology has transformed the token landscape. In the art world, NFTs have radically changed the way art is owned and monetized. As a result of the technology’s popularity, large companies such as Coca-Cola, McDonald’s, Nike, Louis Vuitton, and Samsung have now endorsed it.
Through NFTs, more artists can monetize their artwork whose value is determined by the masses rather than a small percentage of experts in the industry. Digital art, which has so far only generated attention through tech platforms like Instagram and Facebook, has now become a crucial revenue source for artists, musicians, and other creators.
Increasingly, scammers are listing stolen art as NFTs on NFT marketplaces. Artists and NFT creators in the non-fungible token industry are economically frustrated by massive fraud and plagiarism. A major issue associated with blockchain technology is the immutability of listings, which makes it impossible to flag them down as copyright infringement as they are never actually removed.
The growing problem of NFT theft and plagiarism has been highlighted by several popular digital artists, including Lois van Baarle and Aja Trier. A spike in fake and plagiarized tokens forced Cent, the NFT marketplace, to temporarily suspend most transactions in February. An NFT of Jack Dorsey’s first tweet was sold on the marketplace for $2.9 million, which gave the marketplace its fame.
Approximately 80% of NFTs on OpenSea’s platform are fake, the popular marketplace has recently admitted. As part of its efforts to combat counterfeit NFTs, the platform has removed its ’50 item limit’ on its free minting tool. Based on the staggering data, the counterfeit issue facing the entire industry requires more solutions.
The issue has been recognized by several companies, and various solutions have been developed to combat art theft and detect fraudulent listings.
The majority of image detection tools currently available scan and compare the NFT with the images uploaded to public blockchains supported by the software. An artist can then submit their artwork to a secure account. Upon filing an NFT request, the artist will receive an alert and have the option of removing the plagiarised images.
Although counterfeit NFTs are erased from major NFT marketplaces, it is impossible to remove an image code from a blockchain. Fraudsters are hard pressed to sell NFTs as genuine since most transactions take place on these popular platforms.