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All you need to know about NFT UID – complaint and anti-fraud tool – The Financial Express

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Companies or developers can avoid the hassle of development and leverage plug-and-play offered by Web3 development companies to set up their fraud detection systems at a nominal cost.

By Shrikant Bhalerao

NFT UID is a unique identifier system for non-fungible tokens (NFTs). It enables NFTs to be easily identified on the blockchain. It is an open-source system developed by the Ethereum Foundation, and it consists of a set of standards and protocols for creating and managing the identifiers for NFTs. It makes a global standard for NFTs, which can then be transferred or exchanged between compatible blockchain networks and allows for the interoperability of NFTs, meaning that they can be used in any consistent application or platform.  

What is NFT UID Unique Identification? 

NFT UID is a unique identifier assigned to every non-fungible token on the Ethereum

blockchain. This identifier is used to verify the authenticity of an NFT and allows for a quick, effortless transfer of ownership. NFT UID provides a layer of security and ownership to the NFTs since it is an immutable and secure identifier that cannot be changed or tampered with.

How does NFT UID work as an anti-fraud tool? 

NFT UID helps to prevent fraud and counterfeiting by verifying the authenticity of digital goods. It is a unique, immutable, and cryptographically secure code assigned to each digital asset or item. It can be used to identify, track, and prove the ownership of digital assets, allowing users to easily verify the authenticity and provenance of digital goods. It also helps to prevent the duplication of digital goods, as it is impossible to replicate an NFT UID. This helps to protect digital asset owners from fraudulent activities such as counterfeiting, double-spending, and unauthorised duplication.

How is NFT UID important for NFTs?

NFT UID is important because it allows NFTs to be tracked, exchanged, and verified on the blockchain. It ensures that each NFT is one of a kind, providing a layer of security and authenticity to the digital asset. Most importantly, NFT UID makes it easier for buyers and sellers to track the ownership and transfer of digital assets, creating a more secure and efficient market.

Future of NFT UID in fraud detection:

The future of NFT UIDs in fraud detection looks very promising. NFT UIDs can create

immutable digital identities that can be tracked and monitored in real-time. This will enable companies to identify, flag quickly, and prevent fraudulent activities or transactions. 

Additionally, NFT UIDs are interoperable and designed for scalability, so companies can

quickly and easily build their own fraud detection systems that leverage the power of NFT UIDs. This will help companies stay ahead of the curve in the fight against fraud.

Full-stack Web3 development platforms further make the adoption and execution of NFT UID simpler by offering it as an API. Companies or developers can avoid the hassle of development and leverage plug-and-play offered by Web3 development companies to set up their fraud detection systems at a nominal cost. 

The author is the co-founder, Seracle

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