NFT or nonfungible token has been around since 2012. But its popularity recently skyrocketed, with its trading volume rising to nearly $11 billion in the third quarter of 2021. Similar to the growth of cryptocurrency, this boom brought interest in NFTS – what it is and what it does. Now, more people are curious about its functionality and why some people trade non-fungible items on digital platforms.
Here are some of the basics one needs to know about NFTs.
What is NFT
Simply, NFTs are a way for artists and digital asset owners to sell electronic property over the internet. These are smart contracts that are stored within the blockchain. Each token holds a record of the unique characteristics of the asset and keeps track of the property’s current and previous owners.
Since, in essence, these are contracts, every creator can add particular details into their tokens. For example, an NFT can be programmed to generate royalties and give them to the creator every time the NFT is resold.
NFTs provide a solution to the challenge of trading electronic assets. Even if someone creates a duplicate of a specific digital artwork, the NFT gives proof of real ownership.
How to Protect NFTs
NFTs are also vulnerable to security risks like social engineering attacks. One of the best ways to protect these are to activate multiple-factor authentication with solutions like LoginID. These applications secure the user’s digital wallet with KYC authentication and biometric verification when they want to access their accounts or complete a transaction.
In contrast to solely relying on passwords, reinforcing the wallet’s security with biometric or FIDO2 key authentication eliminates the vulnerabilities of knowledge-based user verification. Additionally, it addresses many cyber risks while making sure that users have a secure, private authentication for the future – LoginID.
Learn more about NFTs and how to best secure them in an 
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