The term “NFT” has become a buzzword in the past year, with more and more people seeing its value and investing in it. An NFT or a Non-Fungible Token is a digital asset stored on a blockchain that has a unique identification code. As the name implies, NFTs are non-fungible, meaning they cannot be replicated or interchanged with something else. They are uniquely identifiable based on their digital signature.
NFTs can represent any kind of digital asset. Among the most popular ones is digital artwork. With NFTs, investors can buy photographs, virtual renderings of paintings, and other pieces of digital art. There are also people who use NFT to purchase memes or even renowned tweets.
Still, many ask why people are so inclined to pay a premium for an asset that numerous individuals can see and share. Given that, they can do so free of charge.
This is because there is a certain prestige linked to being a certified owner of a particular digital art piece or pop culture item. And a lot of people possess the willingness to expend large sums of money to ascertain ownership over these digital assets.
The growing interest in NFTs propelled the trading volume in this market to reach figures in billions. But people are also becoming cautious of the possible risks in the NFT industry. Besides legitimate investors, criminals are also gravitating toward NTFs.
The use of passwords and other weak authentication processes to secure digital assets proves to be a liability. These outdated means of confirming a person’s claimed identity are no longer effective in the modern world.
To better protect NFTs, they need a stronger form of identity verification. Presently, many alternatives are available such as biometric identity verification solutions. These advanced identity proofing technologies are more effective in deterring fraudulent attempts and cannot be bypassed using the techniques used against passwords.
For more information on the matter, see this infographic created by LoginID.
