A Non-Fungible Token, or NFT, is a blockchain-based means of asserting ownership of a unique digital asset, such as art, music, video game items, memes and GIFs, virtual fashion, and other online pop culture items.
Individuals can create an NFT by selecting the blockchain they want to use their NFT on and finding a cryptocurrency digital wallet that supports their chosen blockchain’s NFT standard. Then, they need to purchase enough crypto to generate their NFT, connect their digital wallet, and upload to a compatible NFT marketplace the item they want to try to turn into an NFT.
NFTs enable a real market for digital assets. In addition, it also provides consumers the ability to value, purchase, and exchange digital assets using a digital platform securely.
The uniqueness and identifiability of NFTs pushed people to invest billions into this new asset class. Still, the explosion in popularity and significant investments in the industry have made NFT, just like cryptocurrencies, a primary target of hackers.
Many companies are spending millions every year to bolster their identity verification processes. They are implementing eKYC protocols to keep fraudsters at bay. In addition, various organizations are also investing in passwordless authentication and biometrics for more robust digital identity proofing measures.
Passwords or PINs are not a reliable authentication method, as they are an easy target for cybercriminals. Hence, replacing these conventional methods of authentication with passwordless authentication is becoming imperative in today’s digital age.
Passwordless authentication method, such as FIDO2 passwordless authentication, offers enhanced security and convenience. Users using the FIDO2 authentication method are prompted to enter their biometric (fingerprint or face scan) into their device. The biometric and the device acts as the private key that unlocks the user’s account.