NFTs create a unique on-chain smart contract that does not have a directly tradable counterpart

The HUMAN Protocol confirmed through their official blog that the Proof of HUMANity has potential applications in the world of NFTs. The group claims that, NFTs are not a fad. Of course, the current use of NFT technology as digital art property may or may not last, but this is just one application of NFTs. It is worth remembering the great utility of NFTs, or non-fungible tokens, which simply create a unique on-chain smart contract that does not have a directly exchangeable counterpart. It is unique, or non-fungible.”

Proof of HUMANity and the Bid for NFTs

From Human Protocol, they also pointed out that the latest NFT platforms are incorporating on-chain auctions to NFTs, as is the case of Metaplex (Solana Labs).

“While on-chain auctions may be appealing to both buyers and sellers of NFTs, it comes with a risk. When you are bidding at a traditional auction house, you can see [whom] you are bidding against. In Web 3.0, you cannot. Just as malicious bots can front-run DEXs and manipulate market prices, so they can in on-chain auctions. They could bid higher on pieces, artificially driving the price up, or else orchestrate with other bots to manipulate the appearance of a bidding war (if you think you are up against 1,000 bidders, you may be likely to walk away, not knowing they are bots).,” they specified.

In the blog post, they claim that the humanity test stops bots at their source. In this example, Metaplex could integrate Proof of HUMANity to function as an essential test that all bidders must pass.

Beyond Art

For those behind the HUMAN protocol, it is worth analyzing other NFT applications to understand the determining potential that bots could have in such technology and ecosystem.

“NFTs are simply a unique digital code for which there is no equivalent tradable asset; they can be traded for other things, but there is no direct substitute for it. It is non-fungible, while a dollar is fungible: one dollar is equal to another”, they noted.

“NFTs will most likely be used as a form of identification in Web 3.0. Anything else unique – be it tickets to a sports game, the movies, a plane ticket or any kind of QR code – could be an NFT,” they added.

In this sense, any form of bidding that may take place in these NFTs could benefit from a proof of humanity check.

“Whether one is selling Bitcoin through DeFi, or Superbowl QR code tickets through an online marketplace, the principle remains the same; bot protection is essential,” they pointed out.

Creation

The proof of humanity could also be a required proof in the minting of the NFT itself.

They assert that, “to mint an NFT is not very difficult. As bots become more sophisticated, there is a possibility that they themselves could create NFTs, whether for art, identification, or event tickets, to name just a few uses of NFTs.”

In this case, “Proof of HUMANity would not only be used in any bidding process or DeFi protocol, but also as a way to ensure humanity at different stages of the NFT life-cycle  – whether to authenticate that the minter of the NFT is a human, or that the holder of the NFT is a human,” they explained in the blog.

They then added that it is essential to convert NFTs into forms of identity, or into QR codes, as a means to stop a bot from minting its own QR codes and thus scam shoppers.

In conclusion, they highlighted that the HUMANity test is not likely to be a stand-alone solution to protect the creation, offering, and ownership of Web 3.0 NFTs, but will be part of a broader background or identity check process. However, an on-chain bot blocker has endless use cases to protect Web 3.0 as it moves toward using non-fungible tokens in more useful and common ways.

By Audy Castaneda

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