What you need to know about NFT and network security

What you need to know about NFT and network security – Mail Bonus

In December 2021, a work of art called “The Merge” set a record for the highest price officially sold by a living artist. While high-priced art tends to be oil paintings or sculptures, this $ 91.8 million piece is entirely on a blockchain. “The Merge” is one of many works of art of its kind that have exploded in popularity; Known as unchangeable tokens, or NFTs, these digital assets act as proprietary certificates for certain images and videos.

But with new technology, the question must be asked: are they safe?

NFT network security: vulnerabilities that could put users at risk

Although NFTs are protected against some types of cyberattacks, they still have their share of vulnerabilities. The security of your NFTs depends on where your wallet is stored; some marketplaces are more sensitive than others, with centralized systems that store user keys within their own systems. If that system were compromised, cybercriminals could access all the user data stored in it.

NFTs also face risks associated with smart contracts and blockchain-specific applications. Because smart contracts are the foundation of NFT design, all the vulnerabilities within these applications leave users unprotected. One of the most popular NFT projects, CryptoPunks, experienced this problem in 2017. An error affecting their smart contract application prevented Ethereum from shipping in the seller’s wallet, meaning that scammers could get NFTs without paying for them.

These vulnerabilities are just a few of the issues raised by NFTs cyber security capabilities. As with many other valuable items, hackers have found various ways to infiltrate valuable accounts and steal assets inside.

Common NFT hack and problem

There are very different ways that hackers have found to compromise NFT security; some involve the use of advanced modern hacking technology, while others use methods that are as old as the internet itself.

  • Fishing: One vulnerability that blockchain will never be able to account for is simple human error. Hackers will send NFT owners a link to a fake wallet website, usually asking them to log in to fix problems with their account. Once the credentials have been entered, this hacker has access to the user’s encrypted wallet and all its assets (including NFT).
  • Proving ownership: With the hassle of storing images on a blockchain, many NFTs are actually owned through image identifiers. This means that when you buy NFT, you do not actually own the image. This has led many people to purchase fake NFT image identifiers; the scammers run away with the money while the user is left with a useless video URL.
  • Personality fraud: As with any cryptocurrency related technology, there are a number of scams that can force users to leak sensitive data. This goes beyond the account information of your wallet; With marketplaces like Coinbase, where a lot of information is required to set up an account, users have often experienced identity theft scams. NFT marketplaces are no different and everyone who works within them should take care with whom they share their data.

How to secure your NFTs

Securing your NFT devices starts by choosing the type of wallet you will use: hot or cold. Cold wallets can lead to a much higher level of security, as they have no connection to the internet. The only way to steal NFT from a cold wallet would be to have physical access to the hardware. The problem with this option is that most NFT transactions take place through a hot wallet and it would be difficult to transfer your collection offline if you are ever going to sell any of your tokens.

A hot wallet, which allows you to buy and sell, exposes you to the same attacks that are present whenever you go online. Make sure you keep a close eye on your login credentials and never share sensitive information with anyone. If a leak occurs, be sure to run an authentication scan as soon as possible. This can help you identify what has happened to your information and stop hackers before they can commit identity theft.

NFTs and Crypto: Different technologies with different network security capabilities

As two of the most prominent blockchain technologies, NFT and cryptography are often thrown together. Although both are digital assets, it is not possible to trade with NFT or exchange for each other, so it is much more difficult to trade with them. Fortunately, less business usually means more security, as the number of interactions with the property decreases. As time goes on, the level of cyber security of both technologies will increase; for now, NFTs could be a less sensitive investment, as long as users take the time to secure them properly.

Support us through our sponsors

Mail Bonus – #NFT #network #security

Leave a Comment

Your email address will not be published.