Nonfungible tokens (NFTs) captured the world’s attention when the first NFT artwork was sold at an astonishing price of $69 million. The artwork was a collage by the digital artist Beeple, and its sale has heightened people’s attention to the enabled possibility of trading digital assets over the internet. Because of that historic event, many are now taking an interest in NFTs and are discovering the appeal of owning digital assets.
Although this token has a wide scope, it is presently very popular in the trade of digital artwork collections and other electronic files like GIFs and tweets. For those who are not familiar with NFT markets, it would initially be confusing to think about why people would buy something that anyone on the internet can easily and freely view. But essentially, the individuals dealing with NFT put a high value on the concept of being the owner of something that is unique and interesting.
Before, selling digital assets was challenging because anyone could easily copy and distribute them over the internet. NFT provided a solution to this problem by ensuring that the true original copy is directly transferred from the artist to the buyer through blockchain technology. An NFT is also encrypted with the artist’s signature in the blockchain. So even if others can create a copy of the file, the buyer knows and can verify that the asset in his possession is the authentic one.
However, there are still risks to owning an NFT. Like anything that is on the internet, they are vulnerable to cyber-attacks. One way of securing them is by enabling stronger authentication with solutions like LoginID.
LoginID can upscale an NFT and cryptocurrency digital wallet with eKYC and biometric authentication. It also adheres to the FIDO2 standard, which uses cryptographic login credentials that are not stored on a server. In effect, users get a secure, private authentication for the future – LoginID.
Learn more about NFTs and how to protect them in an infographic from LoginID.