What Are Nfts And How To Best Protect Them
Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership of physical/digital assets. Such types of assets include art, music, trading cards and collectibles, video game items, virtual fashion, memes and GIFs, and other online pop culture items.
This new crypto asset class creates opportunities for people to buy and sell unique physical or digital assets from internet platforms. It also enables them to promote originality in different assets and avoid forgery.
To create an NFT, individuals do not need an in-depth knowledge of coding on the blockchain. They simply need to select the blockchain they want to use their NFT on and find a cryptocurrency digital wallet that supports their blockchain’s NFT standard. Next, they need to purchase enough cryptocurrency to create an NFT on their chosen blockchain and connect their digital wallet. Finally, they have to upload the item they want to turn into an NFT to a compatible NFT marketplace to generate their Non-Fungible Token.
Because of the ease in the generation of NFT and the assurance that the digital signature in every token cannot be replicated, NFT’s popularity exploded in the past 12 months. In fact, NFT trading volume in the third quarter of 2021 reached nearly $11 billion.
However, along with the increasing popularity of NFTs is the increased cybersecurity attacks on this crypto asset class. With the significant amounts of financial assets invested in NFTs, as well as cryptocurrencies, it is understandable why NFTs and crypto are prime targets for cybercriminals.
Industries using blockchain employ robust cybersecurity measures, such as identity verification protocols, to improve their data systems’ security. Various financial institutions now have electronic Know Your Customer or eKYCprotocols to prevent potential threats and fraudsters from circumventing and exploiting their systems.
In addition to their eKYCguidelines, they also add biometrics as part of their identity verification process. Biometric authentication offers a more secure way of authenticating an individual’s identity. This also enables account users to opt for passwordless authentication. Hence, instead of typing passwords, they will only have to use their biometric (fingerprint or face scan) to securely access their account.
To know more about NFTs and how to protect them, read this infographic by LoginID.
