What are NFTs and How to Best Protect Them

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NFTs or Non-Fungible Tokens have been around for a long time but never exploded the way they did during the past 12 months. It recently debuted in people’s consciousness in early 2020 and built momentum.

2021 was the year when people became increasingly interested in bitcoin and cryptocurrencies. But even more, it was also the year where NFTs went mainstream. But what are NFTs, and why are they suddenly gaining attention?

NFTs are similar to cryptographic tokens like cryptocurrency recorded on a blockchain, used to assert ownership, prove authenticity, and provenance of anything. It can be in music, tweet, physical items such as artworks, collectible cards, and even real estate.

“Non-fungible” means the token is unique and cannot be duplicated or swapped for anything else. For example, if a person purchases an artwork authenticated by an NFT, they are not buying the digital asset. Instead, they are availing the digitally-authenticated note stating only one owner.

People might wonder why others are willing to pay for a digital artwork that many can view and share. The answer is that an NFT owner holds the contract stating their ownership rights. There is a specific value with being a certified owner of a particular piece of anything. 

In truth, investors have poured billions into this new asset class in the third quarter of 2021 as they see its potential. However, it became a prime target for hackers to commit criminal acts like cryptocurrencies. 

Digital assets like NFTs must be backed with a robust authentication method for Fraud Prevention. Gone are the days where passwords are enough to secure an account. Passwords are now an open invitation for phishing, SIM swap, account takeover attacks, and more.

Also, organizations must consider strong customer authentication that eliminates passwords risks for eCommerce fraud prevention.

Learn more about NFTs, and How to Best Protect Them by visiting LoginID’s website.

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