The HUMAN Protocol’s Proof of HUMANity has potential applications in the world of NFTs. A) Yes they affirmed it through the official blog.
“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”, they detailed.
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 can be attractive to both buyers and sellers of NFTs, they do come with risk. When you bid on a traditional auction house, you can see who you’re bidding against. In Web 3.0, no. Just as malicious bots can preempt DEXs and manipulate market prices, they can also do so in on-chain auctions. They could bid higher for parts, artificially driving up the price, or orchestrate with other bots to manipulate the appearance of a bidding war (if you think you’re up against 1,000 bidders, you’ll likely walk away, not knowing they’re bots). )”, they specified
“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 said 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 specified.
“NFTs will most likely be used as a form of identification in Web 3.0. Anything else unique – whether it’s 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 it could be said that any form of bidding that may take place on these NFTs could benefit from a humanity test 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.
Creation
The proof of humanity could also be a required proof in the minting of the NFT itself.
Minting an NFT is not very difficult. As bots become more sophisticated, there is a possibility that they could create NFTs themselves, whether it be 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 it be 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: “This information is important if NFTs are to be converted into forms of identity, or into QR codes, as what stops a bot from minting its own QR codes to scam shoppers?”
In conclusion, they highlighted: “The humanity test is likely not 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 verification 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.”
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