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NFT Due Diligence

Due Diligence underpins all successful NFT projects and trades.

NFTs are today exchanging hands at a tremendous value, as evident from an artwork of an NFT artist Beeple selling for a whopping $69 million in a Christie’s Auction. On Axie’s Infinity, a gaming platform, a virtual property seller sold a digital estate at $1.5 million dollars. While these stupendous volumes are prompting the launch of new NFT projects and startups, it is also attracting artists, gamers, sellers, traders, and many more to test and try their luck.
Problem is – the lucrative terrain is also attracting cyber-criminals who want to make some quick money. There are also some peculiar issues that threaten to wipe out the entire investment of the entrants. Due Diligence can protect the NFT entrepreneurs, investors, and traders from such loss.

Contrary to perception, the NFT is not the underlying item purchased itself, but a sort of certification about the ownership of virtual assets. Here are a few major threat vectors that might push your NFT venture off the rails.

Security

Problems like account hacking, creation of unauthorized NFT versions, plagiarism, and more have trickled into the ecosystem.

Prevention of NFT Counterfeiting

Minting of the NFTs in the asset owner’s wallet without their knowledge happens because of an anatomical defect in smart contracts. Due Diligence can detect the issue, nipping it in the bud.

Code Patch-up

Simple mistakes while coding could result in unexpected consequences. Due Diligence helps in discovering the severity of errors in time and taking adequate remedial steps.

Check Gaps in Minting Process

Verifiable authenticity of an NFT is the direct outcome of how it was minted. Our team checks the process threadbare to ensure proper and secure minting.

Ensure accessibility of virtual asset

If the virtual asset beneath NFT is corrupted or removed, the buyer will lose access. To ensure this, we ensure the smart contract provides for hosting of virtual asset in an accessible format.

NFT space is replete with incredible promise and might hold for you a fortune. However, to harness the space, you will require Due Diligence, backed by a thorough process. Here are various phases of our Due Diligence ignition process:

What is NFT?

NFT is a cryptographic token bearing an emblem of ownership.

What is Due Diligence in general?

Due Diligence is the process of ensuring every component of a transaction is in place before taking it forward.

What is the objective of Due Diligence in NFT?

The aim of Due Diligence in NFT is to establish that any decision taken regarding an NFT project or trade is an informed one and no holes are left in the code, maximizing your chances of finding value in the transaction.

Is Due Diligence imperative for security in launching NFT projects and trading?

Given the riches in NFT space, threat actors are bent upon going to any extent for heisting NFTs. Due Diligence blocks any attempt to counterfeit NFTs.

What does minting refer to in NFT space?

The process of writing digital art as a transaction on the blockchain is termed minting.

What makes minting such an important process for NFT’s security?

The way an NFT was minted impacts its verifiable authenticity. Any gap in the process leads to creation of fake NFTs.

Which kind of Due Diligence Quillaudit offers?

Quillaudit rolls out technical and operational Due Diligence. We essentially look at problems such as creation of unauthorized NFT versions and accessibility of virtual assets backing the NFTs.