# Leveraging Blockchain Data and AI to Fight Forgery

By [Roderick Thompson](https://paragraph.com/@roderick-thompson) · 2023-08-16

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The rise of non-fungible tokens (NFTs) has opened up new opportunities for digital art and collectibles. However, as the market grows, so too do the incentives for fraud. With no centralized authority to verify authenticity, it has become easier than ever to pass off replicas as original works. This threatens the integrity of the burgeoning NFT economy.

BitsCrunch is working to address this challenge through its AI-powered blockchain data platform. By aggregating metadata from leading marketplaces like OpenSea and analyzing transactions on Ethereum and other networks, BitsCrunch provides a comprehensive record of on-chain activity. This wealth of information serves as a foundation for developing advanced machine learning models.

One such model focuses on detecting anomalies that could indicate forgeries. It examines attributes like block timestamps, wallet addresses, and file hashes to establish baselines for legitimate listings. Any listings displaying significant deviations from these norms are flagged for further human review. For example, if an NFT is listed only minutes after the original was sold, this could suggest the work was copied rather than uniquely created.

In addition, the platform taps into computer vision techniques to perform visual analysis of image and video NFTs. Models are trained to recognize subtle differences in art styles, color palettes, and other aesthetic qualities that distinguish original works from imitations. This allows the system to automatically flag listings bearing extremely close resemblance to existing pieces in a database of known works.

BitsCrunch also encourages community participation through its open data and transparent methodology. Individuals can browse analytics and even run their own queries to uncover potential inconsistencies. If a forgery is found, users have the option to "report" it through a decentralized workflow. This routes the case to curators who can then blacklist specific wallet addresses or listings from appearing in search results and analytics going forward.

By combining on-chain and off-chain data with advanced AI, BitsCrunch aims to establish the most authoritative record of authentic NFT activity online. This helps build confidence for collectors and creators alike that the platform only surfaces legitimately created and transacted digital assets. With network effects, the system will grow increasingly robust at detecting even the most sophisticated forms of forgery over time - ensuring the long-term integrity of this emerging digital economy.

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*Originally published on [Roderick Thompson](https://paragraph.com/@roderick-thompson/leveraging-blockchain-data-and-ai-to-fight-forgery)*
