NFTs or Non-Fungible Tokens have risen in popularity in the past months as their trading volume reached $11 billion during the third quarter of 2021. However, as investors place billions in this new asset, NFTs have become a prime target for hackers in the same way as other cryptocurrencies. Using weak authentication measures to secure NFTs can be a costly mistake in the long run.
NFTs refer to blockchain-based means of asserting ownership of a digital asset. Today, the most popular application for NFTs are digital artworks, which allow investors to purchase photos, digital renderings of paintings, and even online memes. However, NFTs are not strictly limited to art and visual mediums; it also includes music, video game items, trading cards and collectibles, sports highlight, virtual fashion and other online pop culture items.
Unlike traditional cryptocurrencies, NFTs cannot be readily exchanged, unlike bitcoins that are fungible and exchangeable. The non-fungibility of NFTs make them unique, as it has a uniquely identifiable digital signature that cannot be replicated.
However, digital assets like NFTs can also be a target for hackers. Exchanges and digital wallets can be a gold mine for bad actors, significantly if they can gain easy access to such assets. It can be vulnerable and compromised due to weak authentication practices such as securing accounts using passwords only, compared to using more secure authentication methods like kyc authentication.
Using a more secure authentication method like FIDO2 key passwordless authentication can help protect NFTs from hackers. FIDO2 protocol is based on private key, public key cryptography, and the user is prompted to provide their biometrics during registration. The biometric is then stored in the device’s secure enclave, combined with the device itself that acts as the private key, which then unlocks the account. After registration, users would only need to use their biometric to access their accounts securely.
For more information about NFTs and how to best protect them from hackers, you may visit Login ID which offers secure, private authentication for the future.