Decentralized NFT data networks empower local communities and make the market safer

Decentralized NFT data networks empower local communities and make the market safer

In a digital world, businesses, organizations and influencers are leveraging the latest technologies and practices to get closer to their communities in a more direct way. Digital tokens and nonfungible tokens (NFTs) provide even more features to make this happen.

Blockchain-based tokens, especially NFTs, can be used to create new experiences to drive community engagement in Web3 and develop a sense of belonging. This can be a game-changer for brand managers, digital artists, influencers and any entity with an online presence.

In the past, initial coin offerings (ICOs) were the first choice for building communities around blockchain projects. However, the high prevalence of fraud has compromised this collection method. To avoid a similar fate, NFT’s space must stay away from fraud and price manipulation.

With specialized services like bitsCrunch, NFTs are a much safer market, allowing digital artists and businesses to grow active communities. The data analytics company uses the power of artificial intelligence (AI) to help NFT issuers and holders manage the risks associated with laundering, fraud and unfair pricing.

Source: bitsCrunch

Launched in 2021, BitsCrunch started with a traditional business model and is now looking to decentralize the key processes of its data network. A major step towards this goal is to encourage active user participation to improve services and ultimately make the NFT space safer for all parties.

BitsCrunch’s decentralized network is still under development. It will address the challenges of NFT sales data analytics by collecting and enriching data using advanced computational and AI algorithms linked to on-chain and off-chain resources. The community-driven network will accept contributions from developers willing to add functionality to the algorithms. By providing reliable statistics, accurate pricing and fraud detection, the network helps NFT users make informed decisions.

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Incentivized test network gives users the opportunity to contribute to a safer NFT space

In line with the narrative of community engagement encouraged among blockchain market participants, bitsCrunch has launched its incentivized testnet, which drives the decentralization of the revenue-generating product.

BitsCrunch’s data network will undergo several phases of decentralization, with an initial focus on the data queue layer. The goal is to provide seamless, unlimited access to the NFT data in the bitsCrunch network and improve the user experience.

Source: bitsCrunch

To achieve this, bitsCrunch seeks cooperation and input from operators, projects and users who can help in the network’s trial phases. The team behind bitsCrunch believes that the bitsCrunch community and current users are an essential part of the network’s development, and their close collaboration is excited.

To compensate participants, bitsCrunch will distribute 1% of the token supply as testnet rewards, paid in the native token BCUT. Planned as a multi-year, multi-phase initiative, bitsCrunch will allocate a portion of the 1% token supply to each phase as a reward. The team expects that this approach will encourage engagement and a higher level of interaction between bitsCrunch, its community and its customers.

The first round of the incentivized test network will start in June May 2023 and will last until September 2023, when the main network is scheduled to be launched. The initiative accepts testing from both a select group and the open community. In the first case, bitsCrunch filters testers by requiring candidates to go through KYC verification and onboarding. The company said participants in the US may not be eligible for token-based rewards due to regulatory considerations, but the network is seeking other forms of remuneration. Candidates will receive an invitation to fill out a form to be selected for the closed group testing. Testing tasks range from node setup and operation to API consumer testing.

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The tasks include testing the Unleash NFTs platform, error detection, node operator and staking.

Onboarding will not require KYC verification; However, a KYC or similar process will be implemented to receive airdrops to prevent Sybil attacks (where one person tries to take over the network by creating multiple accounts, nodes or computers).

BitsCrunch’s initiative is a big step towards maintaining the integrity and value of the NFT community, and shows that decentralization and active participation can make blockchain safer.

Disclaimer. Cointelegraph does not endorse any content or product on this site. While we aim to provide you with all important information that we can obtain in this sponsored article, readers should do their own research before taking any action related to the company and bear full responsibility for their decisions, nor can this article be considered as investment advice. .

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