With the advancement in technologies, in this digital world banking has not remained stagnant, there is a Swiss fintech firm, Fiat24 that is integrating Web3. They are leveraging digital art and blockchain by incorporating nonfungible tokens (NFTs) and cryptocurrency tokens into the banking system.
What is Fiat24 Doing?
Indeed, Fiat24 is envisioning a novel approach to the banking system and integral architecture through Web3 technology.
ERC-721 NFTs:
These are applied to establish an identity for the clients. Contrary to the regular ID methods, these digital IDs let Fiat24 be sure of the identity of their clients. These NFTs also serve as legal documents for ownership of an account and also grant the client access to their account.
ERC-20 Tokens:
These include money that has been deposited by the client and the balances resulting from the various operations. Based on these tokens, clients can manipulate their money and do some actions related to banking through their wallets like MetaMask.
How NFTs and ERC-20 Tokens Work Together
NFTs used to be associated with the conveyance of digital art, similar to images of apes and penguins. However, their applicability is much wider in certain cases. The latest innovations mean that NFTs can now be used to manage a variety of processes related to banking. For instance, instead of writing smart contracts and pre-programmed self-executed digital agreements, services can be delivered based on the specific information contained in NFTs for different NFT holders.
However, this depends on the use of the virtual world where all banking functions can be replicated and improved using ERC- 721Non-Fungible Tokens for identity and ERC- 20Fungible Tokens for the transaction. Another useful feature of clients’ accounts is that they are connected to their NFT, where banking logic and other necessary information are also stored.
The advantages associated with the use of this technology include the following;
Security and Proof of Ownership:
Thus, such account ownership is clear, and the ownership record in the client’s wallet gives secure access to the NFT.
Efficiency:
Various benefits are associated with using ERC-20 tokens which include Streamlining of Payment Processes. They can execute financial actions like conditional payments, and give loans without the involvement of the conventional banking system.
Speed and Cost:
This platform offers a higher speed and significantly lower fees in comparison with the SWIFT or SEPA protocols.
Integration with Traditional Systems
Fiat24 has integrated its system with other network systems, such as SWIFT, SEPA, Visa, Mastercard, etc. This means that clients can pay for an NFT or ERC-20 token and then engage in normal banking such as being issued with a Visa debit card to withdraw the money from an ATM.
Swiss IBAN NFTs
Therefore, having Fiat24 NFT means that the clients are provided with a Switzerland International Bank Account Number (SIBAN). Once the person has gone through the Know Your Customer (KYC) process, this IBAN works the same as any European bank account. It’s very easy for clients to exchange digital currencies for fiat currencies of their choice like EUR, CHF, or USD. The Fiat24 also has a Visa debit card that a user can use to access the money. The Fiat24 NFT is free but since it runs on a platform token called F24, one token is required to be burnt to make the purchase.
Ethereum Layer 2 refers to the concept of building the mentioned scalable solutions on top of the Ethereum blockchain.
It is important to note that Fiat24 is developed on the Arbitrum layer 2 of Ethereum. To be specific, the Arbitrum DAO backs it up, and Fiat24 has acquired Arbitrum’s token, ARB, through a grant. There are also plans for the next airdrop of ARB tokens shortly.
WEB3 BANKING: Changes That Are Yet to Come
The inclusion of Web3 in banking is an indication of moving towards digital and secure financial solutions. Since major fintech firms such as Fiat24 have embarked on using blockchain solutions traditional banking procedures will transform and become more flexible and innovative for consumers globally.
Besides updating the structure, this new model of banking brings on the future for the improvement of access to financial services all over the world.
Is Hong Kong Losing Its Crypto Crown? OKX Exit Raises Questions About the Territory’s Future
The Hong Kong-based second-largest crypto exchange by trading volume OKX recently withdrew its application to operate in the region. This action came with the same gesture by other crypto firms such as Huobi Hong Kong recently this month.
Why Did OKX Withdraw?
The exchange known as OKX, which is the third largest exchange in terms of trading volume as per data presented by CoinGecko, made the withdrawal announcement on its website. As for possible reasons for such a decision, the company stated that it had weighed its business strategy. Hence, OKX will cease its provision of centralized virtual asset trading services in Hong Kong by May 31. From this particular date, the customers will be able to only withdraw their own money.
Trends Among Crypto Exchanges
OKX is not alone here, though. Many other applicants such as Huobi Hong Kong also pulled out some of their applications they had filed with the Securities and Futures Commission (SFC) recently. This type of trend raises questions about how these companies perceive the regulatory environment in Hong Kong.
Regulatory Environment
The Hong Kong financial regulatory body, the SFC, has been considering license applications for several significant crypto exchanges, Crypto among them. com and Bullish, which owns the media outlet in question, CoinDesk. To date, the SFC has only permitted two exchanges, the latest permission granted in 2022.
This could partly explain why OKX and Huobi Hong Kong are among the exchanges that recently pulled out their applications. It focuses on the problems and risks that such companies encounter in the quest to secure regulatory permits in Hong Kong.
Conclusion
The decision of OKX to withdraw from the approval in Hong Kong can be attributed to the changes happening in the industry of crypto exchanges. Given that the regulatory environment still poses a challenge, these companies are now flexible in their approach and prefer to retreat from the approval system. This action shows that the activities and interactions between the crypto industry and other regulatory authorities are changing.
Can AI Fix the NFT Market? Nuklai CEO Sees Promise, But Warns of Ethical Landmines
AI has addressed new opportunities over the years especially when it comes to the creation of NFTs (Non-Fungible Tokens). Even items such as art or collectibles where people feel there will always be a demand later on are really gaining traction now and AI is at the helm of creating them. It assists in creating artworks as NFTs, especially in enhancing the verification procedures and making digital artwork safe. However, this integration of AI has also brought about some fundamental ethical questions quite seamlessly.
AI as the Possibility and Ethical Use of NFTs
Therefore, based on the experiences of actual users and trying to identify key factors that affect its popularity or lack of it, we can turn to the expert opinion of Matthijs de Vries, the CEO and Founder of Nuklai. He stressed that though introducing smart contracts and transparency into the creation and validation of NFTs can be highly useful with the aid of AI, the use of artificial intelligence in NFT projects raises ethical issues. For instance, some concerns relate to; ownership of content generated through the assistance of Artificial Intelligence, wearing the content generated inappropriately and satisfactorily, and; clarity of the algorithms used in Artificial intelligence.
Again, as AI remains prevalent in the NFT markets, ethical and sound policies should be developed. While it is important to use technology to continuously innovate in the world of digital art the following ethical considerations must be taken into account to ensure that the ecosystem created is sustainable and trustworthy.
AI and Copyright Issues
The impact of AI in solving the problems related to copyright could be characterized as dual–positive and negative. Firstly, AI-generated models have made beneficial contributions to artists and creators by identifying the presence of fakes to ensure authenticity. However, these models have been also used for reproducing artists’ work without authorization and this has made people to be cheated. These offenders are capable of using fake AI-generated images that are virtually indistinguishable from the authentic pieces, thus posing a major threat to artists
These are the issues that AI can think and work about very well. For example, it is possible to consider algorithms that are capable of identifying derivative works and forgeries that contain elements similar to an artist’s style. This capability is essential so that the owners of certain creations do not have their content stolen or misused.
Addressing Ethical Concerns
Ethical considerations should not be a mystery to NFT platforms, especially since they seem to be focused on ranking in profits. One way to do this is by making use of some level of artificial intelligence both in validating the integrity of the virtual work of art as well as in checking the digital signatures. Whenever artists create their pieces and convert them into NFTs, they can include further details regarding ownership within the NFT itself, and the use of AI can simply scan these details to ensure that there are no copies or clones of the same that exist in the market. Some of these differences may be detected by AI and the artists can be assisted to defend their works if similar pieces are discovered.
They may also offer royalties concerning the allowed use of the art using the platforms themselves to automate. This system guarantees that artists are getting the deserved money for their work and don’t get their art used without credit or even permission. New technologies can be employed to prevent artists from abusing their properties and to ensure that the buyers receive genuine artworks, all of which add to building trust in the NFT marketplace.
Utilization of Artificial Intelligence in the NFT Verification Process
Exciting developments are happening in the field of AI and it also applies in real-time NFT verification. AI adaptations are effective in distinguishing an original NFT from a counterfeit by utilizing a large amount of data such as the NFT’s history and features. The subjects are valid, with the fast verification process to curb fake listings, as well as to safeguard consumers from being scammed into purchasing fake NFTs.
It can also identify situations that may be considered suspicious, for instance, multiple listings with similar stocks or a sharp rise in buying and selling activity. This measure eliminates scams that would otherwise affect the buyers since their effects are prevented early enough. Transparency is another advantage that people get because an algorithm verifies an NFT, and others can easily examine its history to ensure it came from a particular authentic source.
Hereby, the Digital Product Passports and AI come into the picture.
Digital Product Passports (DPPs) are getting adopted more often as a form of documentation for the authenticity and provenance of art pieces, luxury goods, and NFTs. AI and blockchain make DPPs more secure and genuine since all the information regarding the supply chain is well-protected and retrievable. The data can be constantly observed by AI which immediately raises an alarm when something seems off, due to which even NFTs with fake DPPs will not be able to avoid detection.
Neural Networks and Machine Learning
Technological enhancements such as neural networks and machine learning help in the authentication of NFTs more accurately and with better efficiency. Finally, these technologies parse the metadata and even try to mimic the style of the artist concerned and can detect a fraudulent NFT in ways that human eyes cannot. In turn, AI remains among the most effective tools for verifying the reliability of NFTs due to their constant improvements due to hackers and scammers.
To conclude, it is evident that AI has an array of benefits in NFT markets, yet understanding and counteracting the ethical issues AI presents is crucial in forming a stable and safe system. With all these developments and the implementation of good ethical standards in the use of Artificial Intelligence in the NFT ecosystem, the expansion and advancement will continue to spew.
