Connect2NFT: A Web-Based, Blockchain Enabled NFT Application with the Aim of Reducing Fraud and Ensuring Authenticated Social, Non-Human Verified Digital Identity

Abstract

As of 2022, non-fungible tokens, or NFTs, the smart contract powered tokens that represent ownership in a specific digital asset, have become a popular investment vehicle. In 2021, NFT trading reached USD 17.6 billion and entered mainstream media with several celebrities and major companies launching tokens within the space. The rapid rise in popularity of NFTs has brought with it a number of risks and concerns, two of which will be discussed and addressed in this technical paper. Data storage of the underlying digital asset connected to an NFT is held off-chain in most cases and is therefore out of the NFT holders’ control. This issue will be discussed and addressed using a theoretical workflow developed and presented for a system that converges NFTs and verifiable credentials with the aim of storing underlying NFT digital assets in a decentralized manner. The second issue focuses on the rise of NFT infringements and fraud within the overall NFT space. This will be discussed and addressed through the development of a practical application, named “Connect2NFT”. The main functionality of this practical application will enable users to connect their Twitter social media accounts to the NFTs they own, thus ensuring that potential buyers or viewers of the NFT can comprehensively conclude who is the authentic owner of a specific NFT. An individual performance analysis of the proposed solution will be conducted in addition to being compared and evaluated against similar applications. Thorough development, implementation, and testing has been performed in order to establish a practical solution that can be tested and applied to current NFT use cases. The theoretical NFT storage solution is a minor but equally important contribution in comparison.

Blockchain distributed identity management model for cross-border data privacy protection

“…Bellagarda1 and Abu-Mahfouz addressed two problems by developing and demonstrating a theoretical workflow for a system that incorporates NFTs and verifiable credentials, presenting an academic workflow for the development of a system that includes NFTs and verifiable credentials in a decentralized manner to store the underlying NFT digital assets, as well as NFT infringement and fraud, which were discussed and addressed through the development of a practical application called Connect2NFT [17] . Sun et al proposed a multi-chain aggregated identity scheme that uses cryptographic accumulators to improve efficiency significantly and provides a way for VASPs, such as centralized exchanges, to demonstrate Proof of Reserves (PoR) to users [18] .…”

From NFT 1.0 to NFT 2.0: A Review of the Evolution of Non-Fungible Tokens

“…Authenticity in dynamic NFTs makes them applicable in various areas. For instance, NFTs could replace passports to travel across the globe without paperwork or stamps [12]. All changes are reflected in the NFT's code, with no chance of fraud or scamming.…”

Not So New Kid on the Block: Accounting and Valuation Aspects of Non-Fungible Tokens (NFTs)

“…NFTs can and are being used for a broad range of uses in many areas. Examples include digital identity (Bellagarda and Abu-Mahfouz 2022;Mentzer et al 2022), medical health records (Tanwar and Thakur 2023), and their use to combat counterfeit pharmaceutical drugs (Turki et al 2023) and food (dos Santos et al 2021). This article does not look at the wider use of NFTs.…”

“…This question aims to identify well-explored areas and gaps within both academic and industry literature on NFTs. Identifying such gaps could have significant regulatory and accounting implications, given the prevalent cyber hacks, fraudulent activities (Bellagarda and Abu-Mahfouz 2022), and regulatory scrutiny in this domain. This study's findings will provide valuable insights for accountants, auditors, and consultants advising organizations managing digital assets, NFTs, and tokens.…”