A Non-Fungible Tokens (NFT) is a unique digital asset that is non-interchangeable and is kept in blockchain-based storage. It has skyrocketed in popularity in the past year. And by the third quarter of 2021, the trading volume in this industry had already approached $11billion.
NFTs are being used in a variety of applications; one of the most widely known ones is in digital artwork. These digital assets enable investors to procure pieces of art like photographs and digital paintings. Some even use NFTs to purchase memes or well-known tweets.
Although there are many other ways to acquire digital art pieces, there is a certain value that the NFT market holds. The prestige associated with being an official owner of a specific artwork or pop culture asset is a factor that makes investing in NFTs all the more enticing. It reflects people’s willingness to expend hefty amounts of money, all for the sake of achieving a particular status.
Other applications of NFTs include, but are not limited to, video game assets, music, sports highlights, collectibles, digital fashion, domain names, and other pop culture assets.
The nature of NFT has attracted numerous investors, and this industry is expected to grow in the succeeding years. However, because of the growing number of investments pouring into NFTs, they also pose security threats.
Hackers may try to infiltrate the system and exploit it for illicit schemes. These threats prompt entities in the industry to ensure robust security by adopting solutions like modern identity verification. In the digital world, outdated identity proofing processes like passwords are no longer sufficient for safeguarding the network.
The future of cybersecurity lies with advanced protection solutions like biometric identity verification and passwordless security. These authentication technologies are not susceptible to common means of circumvention and do not add unnecessary friction in the process.