Decentralized NFT data networks empower communities and make the market safer

In a digital world, companies, 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) bring 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.

Previously, initial coin offerings (ICOs) were the first choice to build communities around blockchain projects. However, the high prevalence of scams has compromised this fundraising approach. To avoid a similar fate, the NFTs space needs to stay away from scams 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 wash trading, 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 toward 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 analysis 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.

Incentivized testnet empowers users to contribute to a safer NFT space

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

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

Source: bitsCrunch

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

To compensate participants, bitsCrunch will distribute 1% of its token supply as testnet rewards, paid in the native token BCUT. Planned as a multi-year initiative with several phases, 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 testnet starts in JuneMay 2023 and will run through September 2023, when the mainnet is scheduled to launch. The initiative accepts testing from both a selected group and the open community. In the first case, bitsCrunch is filtering testers by requiring candidates to pass through KYC verification and onboarding. The company said that participants in the United States 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 onboarding testing.

The tasks involve testing the Unleash NFTs platform, bug detection, node operator and staking, among others.

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

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