Tools to Help Prevent Crypto Scam Theft at World Token Summit

Digital fraud is a major issue on social media. Every day, scammers develop new accounts that mimic well-known content creators in an effort to get their followers and other unsuspecting people to give them money. To tackle this problem, some have looked to the blockchain to devise and execute a decentralized social identity authentication system.

Using Blockchain to Generate a Decentralized Social Identity

At the recently held World Token Summit 2023, Cointelegraph had a conversation with Matthias Mende, who is a co-founder of the Dubai Blockchain Center and also a speaker at the summit. In his address, Mende mentioned one of the center’s projects which is using blockchain technology to generate a decentralized social identity for its users.

Mende informed Cointelegraph that identity fraud has been a recurrent issue in the industry. He himself has encountered many scammers who have taken content he posted on social media and created fake accounts pretending to be him. He said:

The executive declared that, though it is regrettable, there are numerous individuals who desire to hurt others. “We require ways to avert this,” he said. Hence, Mende initiated a venture that will make use of blockchain to authenticate the validity of social media accounts.

In the United Arab Emirates (UAE), the government has created an application known as the “UAE Pass” that is connected to the national identification card, known as the Emirates ID. This application allows individuals to use their mobile phones to prove their identity to service providers through smartphone-based authentication.

Drawing on this idea, Mende revealed that the center had developed a project known as Bonuz that would work in a similar manner. Utilizing the blockchain, they are in the process of constructing a platform that will offer blockchain-based validation for individuals’ social media accounts.

Tokenization for Forensic Analysis

Tokenization can be beneficial to forensic analysis, as discussed on the World Token Summit panel.

Mende asserts that blockchain can resolve the issue of digital identity theft.

The executive also stated that if there is a dispersed social identity, then evidence of identity can be kept on the blockchain, so that individuals can be absolutely certain that the accounts they are interacting with are truly the people they profess to be and not a scam.

Is decentralized social media the next big thing in crypto?