Non-Fungible Tokens, most known as NFTs, started making headlines and went genuinely mainstream in 2021. The most popular application for NFTs is digital artwork, but this is not the only way to use it.
There are nine main categories of NFTs: art, video game items, trading cards, collectibles, sports highlights, memes and GIFs, domain names, virtual fashion, and other popular culture items.
NFT tokens are used to assert ownership of unique items. It allows people to tokenize things included in the given NFT categories, and they can have one certified owner secured by the Etherium blockchain. As it is recorded on a blockchain, NFTs can be used to prove ownership, authenticity, and provenance of anything.
The word “Non-Fungible” is an economic term used to describe things that an individual owns which is unique and cannot be replaced. For example, bitcoin is considered as fungible as if a person trades one for another; he will have the same thing. They can be exchanged as their value defines them rather than their unique properties.
Many have sold millions of dollars for digital artwork, making it a wonder how many are willing to spend a significant amount of money on things that people can easily view and share. But the idea and value behind these non-fungible tokens are that it creates value for a digital asset as it is now scarce.
With its popularity, inventors have poured billions into this new asset class. With the amount of money flowing in, it became a primary target for hackers. There are still security vulnerabilities in the NFT market, and it is essential to use real time fraud prevention measures to safeguard users’ accounts.
Using a more secure authentication method like FIDO2 passwordless authentication can prevent hackers from gaining access to a digital wallet and other criminal activities such as phishing, SIM swap, and account takeover attacks.
Visit LoginID’s website to learn more about NFTs and how to protect them.