NFT as the forefront of digital assets: how secure is it?

As we all know, in the field of Crypto, hackers track funds. In the early days, centralized exchanges and soft wallets were the main targets of hackers. In recent years, attackers have also expanded their target to DeFi smart contracts, trying to use code flaws and vulnerabilities in smart contracts to extract loans and liquidity funds.
Now it is inevitable that they will turn their attention to NFT, which is a fast-growing field with unlimited growth capacity. Hackers are taking some extreme measures to take advantage of the NFT boom .

Earlier this year, NiftyGateway users began to complain that their accounts were hacked. One user claimed that someone had stolen his NFT on the platform and then completed a transaction worth $10,000 without his consent. .
The funds flowing into the NFT also caused the artist’s work to be stolen by an unidentified person and cast into an NFT, which was then sold by an unidentified person for a net profit. In a case reported by Wired, the theft occurred even after the artist’s death.

Although these situations are extreme enough, the unknown future value in NFT will also produce some interesting scenarios. Although the idea of ​​asset tokenization is still in its infancy, in principle, any asset can be tokenized into an NFT on the blockchain.
As the first use case of NFT, the artwork has brought a deep impression to everyone. The record-setting $69 million Christie’s auction by Beeple is almost well-known .

NFT as the forefront of digital assets: how secure is it?

Imagine that in this world, private yachts worth $600 million and crown jewels worth about $4 billion can all be tokenized. This will definitely increase the risk of new potential attackers.
So, if you don’t indulge in the fantasy robbery of the “Mission Impossible” type, then how will our hypothetical cat and mouse security game unfold between a guardian of precious digital assets and a cunning thief?

How secure are blockchain wallets?

Obviously, the NFT market of the existing central organization has the same security problems as the Crypto exchange. They will continue to be the target of attackers, and this type of user may become the victim of this game.

But no one with a truly valuable NFT would risk saving it on a platform with a central organization. The relatively safe assumption is that as the digital asset market matures and NFT becomes mainstream, custody infrastructure will develop in the same way as Crypto. Therefore, people with expensive NFT assets will be able to expect storage wallets to meet military-grade security standards .

So hackers need more complicated strategies. If he cannot access the username and password, is there a way to attack the wallet itself with brute force?

Cryptography is a core component of network security. We use public-private key pairs to achieve secure access from email accounts to Bitcoin wallets . However, the encryption algorithms we currently rely on are secure to a certain extent. With today’s computing power, it will take decades to forcefully attack Bitcoin’s algorithm and reveal someone’s private key.

But the era of quantum computers is approaching. In July of this year, Chinese researchers demonstrated a quantum computer that can complete a benchmark task that would have taken 8 years to complete in 70 minutes.

Eliminate quantum threats

In theory, it is assumed that hackers have enough quantum computing capabilities. Then in this case, he can attack the blockchain encryption technology that protects the NFT Crown Jewelry and obtain the private key. Such theft may be successful.

NFT as the forefront of digital assets: how secure is it?

However, in this case, if the NFT issuer uses a crypto platform with anti-quantum computing capabilities to release the NFT, then they will have the last laugh. The team behind the anti-quantum blockchain QAN foresaw the quantum threat a few years ago and began to develop a non-outdated platform using more complex encryption algorithms .

51% attacks are getting more expensive

Another way hackers want to achieve their goals is to attack the blockchain network itself. More and more PoS proofs make this cost expensive, because hackers need enough pledges to attack.

For example, let’s assume that NFT is released on Solana, the most popular staking platform at present. The attacker needs to obtain $90 billion in SOL (Solana’s public chain token) to successfully manipulate the network. Even with crown jewels as a reward, this is prohibitively expensive.

In this case, attacking the PoW proof-of-work blockchain may be a better choice. Currently, it only costs $2.6 million per hour to attack Ethereum . However, this is still not easy.

Therefore, despite the headlines of NFT theft, it is actually not easy. NFT is the same as any other digital asset. Expensive NFT and tokenized assets should be stored in a secure private wallet, or in the hands of a trusted and reputable custody service provider. The strong security of the blockchain can greatly reduce its risks.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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