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    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    Enhancing Security in Online Gambling with Blockchain Technology

    Enhancing Security in Online Gambling with Blockchain Technology

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

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    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

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  • Metaverse
    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

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    Experience to Earn: Everdome's Metaverse Frontier

    Experience to Earn: Everdome’s Metaverse Frontier

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

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    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

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  • NFT
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    Ethereum Collections Lead NFT Sales Today

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    how NFTs became a global brand and a Web3 “social currency”

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    Labubus have succeeded in every way that NFTs have failed

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    NFT sales surge to $574 million in July, second-highest in 2025

    NFT sales surge to $574 million in July, second-highest in 2025

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    The Biggest Games Releasing in August 2025

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    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

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    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

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    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

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    What’s the Difference & Which Is Better to Trade?

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    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

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    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

  • Coin Marketcaps
  • Home
  • Crypto
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  • Web 3
    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    Enhancing Security in Online Gambling with Blockchain Technology

    Enhancing Security in Online Gambling with Blockchain Technology

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

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    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

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    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

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    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

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    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

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    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

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    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    Experience to Earn: Everdome's Metaverse Frontier

    Experience to Earn: Everdome’s Metaverse Frontier

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    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

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    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

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    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

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    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

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    Carrieverse and Disney Ink Content Deal

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    SYKY Bridges Digital and Physical Fashion with Apple Vision Pro

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    Somnia Launches Playground App to Empower Metaverse Creators

  • NFT
    NFT Sales Spike in July—but Still Miles Below 2024’s Highs

    NFT Sales Spike in July—but Still Miles Below 2024’s Highs

    Ethereum Collections Lead NFT Sales Today

    Ethereum Collections Lead NFT Sales Today

    how NFTs became a global brand and a Web3 “social currency”

    how NFTs became a global brand and a Web3 “social currency”

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Labubus have succeeded in every way that NFTs have failed

    Labubus have succeeded in every way that NFTs have failed

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    NFT sales surge to $574 million in July, second-highest in 2025

    NFT sales surge to $574 million in July, second-highest in 2025

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

  • Gaming
    The Biggest Games Releasing in August 2025

    The Biggest Games Releasing in August 2025

    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

  • Blockchain
    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    LFG Boosts Token Launches with Community Power

    LFG Boosts Token Launches with Community Power

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    Polyhedra Network launches Proof Cloud in open beta

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    It’s a Different Sort of Olympics as Cryptographers Face Off in Polyhedra’s ‘Proof Arena’

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    SoonVerse Partners with Arris to Enhance User Experience

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

  • AI
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    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    ETH Daddy Discusses Ethereum and AI

    ETH Daddy Discusses Ethereum and AI

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    ChatGPT is a tad too enthusiastic about Ethereum’s prospects

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    UAE emirate launches new free zone for digital assets, Web3 and AI

    UAE emirate launches new free zone for digital assets, Web3 and AI

  • Guides
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    What’s the Difference & Which Is Better to Trade?

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

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    What are Decentralized Autonomous Organizations (DAO)? The Pros, Cons, and Real-World Examples

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    What Is Copy Trading in Crypto? A Beginner’s Guide

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    What Is Crypto Staking? How to Earn Crypto by Holding It

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  • Analysis
    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

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    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

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Home NFT

AI could transform NFT marketplaces, but ethical challenges loom, warns Nuklai CEO

May 22, 2024
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AI could transform NFT marketplaces, but ethical challenges loom, warns Nuklai CEO
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Speaking with crypto.news, Matthijs de Vries, CEO and Founder of Nuklai, delved into the ethical implications of AI use in the NFT sector.

READ ALSO

NFT Sales Spike in July—but Still Miles Below 2024’s Highs

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The onset of AI has opened up a lot of new possibilities, and one of the sectors that has leveraged this technology heavily is NFTs. From generating NFT art to enhancing verification processes, AI is becoming a pivotal tool in the decentralized digital art world.

However, this rapid integration also brings about some ethical concerns. Issues such as intellectual property rights, the potential for misuse of AI-generated content, and the transparency of AI algorithms are at the forefront of this debate.

The need for ethical guidelines and robust policies becomes more critical as AI’s influence in the NFT space grows. Balancing innovation with ethical considerations will be key to fostering a sustainable and trustworthy ecosystem.

De Vries sees AI as a transformative force for enhancing NFT verification and security, but he asserts that addressing its ethical challenges is crucial for maintaining a trustworthy and sustainable digital art ecosystem.

AI faces criticism for copyright issues and is also seen as a solution for NFT copyright problems. How can AI tackle these issues effectively, given its own copyright challenges?

Technology can be a double-edged sword. For instance, AI’s generative models have both helped and harmed. They’ve been used to copy artists’ work without permission – this misuse is pretty common in scams. A scammer’s unauthorized use of an artist’s work often results in AI-generated creations that are similar to or indistinguishable from the artist’s original piece. Such creations spark the conversation around property rights violations and illustrate the need for stricter regulations in AI development. At the same time, AI algorithms can spot derivative works and forgeries, even if they have subtle changes. Humans might miss these. E.g., AI can learn an artist’s style and then identify copies. This ability is crucial in addressing copyright issues.

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There are also some ethical concerns. These include intellectual property and potential misuse of AI-made content. How should platforms address these concerns to maintain trust and integrity?

AI requires specific data for training. Artists can embed ownership details into the NFT representing a piece of art. This clear traceability to the original creator ensures that anyone can verify the piece’s owner. Platforms can deploy AI to scan that data and crawl the internet for pieces that attempt to replicate the creator’s art. If it finds similar pieces, it can check for the authentication information. It will flag any differences and help artists enforce their IP rights. Platforms can also distribute automatic royalty payments based on the art’s allowed usage.

This system ensures fair payment and tracks data use in blockchains. It protects creators’ rights and encourages ethical content use. Also, an NFT marketplace with advanced AI shields artists from property misuse and buyers from fake art. These steps reduce scams, boosting platform trust and integrity.

From your experience, what advancements are being made toward achieving real-time NFT verification using AI?

Given information about the provenance of NFTs, AI can process these vast amounts of data to verify a real or fake NFT almost in real-time. We can train AI to recognize unique attributes found only in authentic NFTs. This rapid verification prevents fraudulent listings and can alert users before they potentially purchase fakes. It helps prevent the sale of counterfeit or even stolen NFTs.

How do you think these advancements impact the user experience?

As AI gets better at detecting this information, it can expand its capabilities beyond identifying fake NFTs. For example, AI may be used to find spikes in volume for a particular NFT listing. It could also flag multiple NFT listings with similar attributes. This would shut them down before anyone gets a chance to buy. NFT marketplaces all run on blockchain networks, which are famous for their open-source nature. A trustworthy NFT marketplace will make its AI’s learnings public for anyone to view, allowing buyers to view an NFT’s history. This isn’t to mention that blockchains are immutable, meaning users can rest assured that an NFT’s data was not tampered with.

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More and more, people are using AI-driven systems to verify the origins of NFTs. How do these systems ensure digital asset authenticity?

To verify if a digital asset is authentic, AI needs a robust data trail to determine origin and ownership. Public data sources offer a verifiable trace of authenticity. They are the ideal means to train AI, as they show the many ways fraudsters try to play the system. Collaborations on data and on-chain verification can add significant value to AI’s valuation of digital assets. AI can also evaluate real-world assets (RWAs) and intellectual property rights.

You might also like: NFT Price Floor co-founder predicts quality NFTs comeback despite market retreat

What do you think are some of the main challenges in keeping data accurate and preventing fraud?

Of course, bad actors will keep finding ways to get around existing systems. This is why public collaboration is critical, as expanding upon trainable data will help AI detect new methods of fraud as soon as they appear. AI training also needs accurate data. This requires NFT owners to properly document their asset’s history. As long as the human side of NFTs is correct, the AI findings will also be. When it comes to privacy, AI can learn what info to share and what to keep private. This comes down to NFT developers and marketplaces building their systems in a way that promotes artist privacy. AI doesn’t decide what information should be private or shouldn’t — that’s up to humans.

Digital Product Passports (DPPs) are a growing concept. It aims to track the history and ownership of luxury items and NFTs. How do AI and blockchain boost the security and authenticity of DPPs?

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Digital passports are easily made by checking and tracing all supply chain data. This data is then put in an NFT to show its origin. It tracks everything, like its environmental footprint, ownership, and maintenance. AI models can then spot fraud by finding unusual patterns. AI can crawl the web faster than humans and doesn’t require rest. Essentially, AI can monitor multiple NFTs on a 24/7 basis and immediately flag NFTs with inauthentic DPPs. However, AI works best with publicly available data. Blockchain-powered supply chains are completely transparent. They allow AI to understand their inner workings and note discrepancies, making them more effective when tracking NFTs.

Lastly, could you explain to our readers how neural networks and machine learning make NFT authentication more accurate and efficient?

Anyone could replicate an NFT collection and create a counterfeit version, but the underlying data would reveal that it is not the original. Neural networks analyze everything from the NFT’s metadata to the style of its creator in ways that the human eye could never pick up. Hackers and scammers are getting smarter. They constantly come up with new ways of deceiving people. But AI can reliably validate the authenticity of an NFT when trained on diverse data sets and combat any new methods a bad actor comes up with. Distinguishing fakes is hard for most people – and training AI on large data sets makes spotting fraud easier. Technological advances, such as neural networks, further enhance the ability to incorporate extensive verification methodologies into NFT marketplaces.

Read more: What are the best AI crypto trading bots, and can you trust them?

Tags: CEOChallengesethicalLOOMMarketplacesNFTNuklaiTransformwarns

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