A Non-Fungible Token (NFT) is a blockchain-based means of asserting ownership of a unique digital asset. This includes art, music, video game items, sports highlights, memes and GIFs, trading cards and collectibles, virtual fashion, domain names, and other online pop culture items.
The idea and value behind NFTs are that they are created with distinct identifying codes on the blockchain. Every NFT has its own digital signature, making them uniquely digitally identifiable. In addition, the digital signature cannot be replicated, ensuring that the digital asset has a “one-of-a-kind” identity.
Non-Fungible Tokens (NFTs) gained momentum in the past year as investors are pouring billions into the new asset class. In the third quarter of 2021 alone, trading volume in NFTs amounted to almost $11 billion.
The popularity of NFTs continues to create opportunities for people to buy or sell art from internet platforms, avoid forgery, and promote originality in different assets. However, the explosion in the popularity of NFTs also exposed the new digital asset class to become a prime target for bad actors.
Exchanges and digital wallet for cryptocurrencies and NFTs can be a goldmine for hackers if they can gain access to them. Hence, using a weak authentication measure when securing user accounts for cryptocurrencies and NFTs alike can be a very costly mistake.
Utilizing knowledge-based authentication methods such as passwords is an example of a weak or bad authentication practice. Passwords are vulnerable to fraud tactics like phishing, SIM swap, and account takeover.
It is recommended to leverage robust authentication methods like FIDO 2.0 passwordless authentication. This modern authentication solution can secure NFTs and protect them from hackers as FIDO2 protocol uses a combination of mobile and biometric technology. During registration, users are prompted to enter their biometric such as fingerprint or face scan to their device. Their biometric, along with their device, will act as the private key that they can use to securely access their account.
To know more about NFTs and how to protect them, read this infographic from LoginID.
