Security is the cornerstone of the rise of NFT

In 2021, we will officially enter the NFT era. The emerging non-homogeneous token NFT market has reached an eye-catching milestone and transaction volume has reached a new high. Originally independent industry elements such as DeFi, NFT, and Game are mixed together to create more novel and unique new elements, such as NFT+ games, NFT+DeFi, NFT+ domain name services, NFT+ art, and many innovative NFT-related tracks are Created and developed vividly. Recently, the main application scenarios of NFT worldwide and the areas where centralized transactions occur are games, trading markets, virtual worlds and collectibles.

NFT (Non-Fungible Token) is a non-fungible token. Different from the cookie-cutter blockchain homogenized tokens, such as BTC, ETH, EOS, etc., NFTs belong to thousands of people, and each NFT has a unique ID. Therefore, NFT can realize the value benchmarking of many items in the physical environment under the chain, such as real estate and art collections. At the same time, it can also reflect the value of abstract objects such as IP rights, game equipment, and authentication information.

With the continuous expansion of the application field of blockchain technology, in the evolution of becoming the core force of the digital economy, the process of asset digitization can be accelerated by virtue of blockchain technology, such as cultural and creative products, artworks, games and other fields. At the same time, irreplaceable assets and intangible assets in the real economy can also be used for more accurate value benchmarking and circulation tracking through NFT.

The change from homogenization to non-homogeneity, to a large extent, conforms to the development trend of the concept of assets “from off-chain to on-chain”, and the value distinction of assets is also a rigid demand that must be clearly defined.

Compared with homogenized tokens, NFT possesses proprietary attributes such as circulatory, indivisibility, and consensus value. Under the value protection characteristics of blockchain technology, it is considered to be a future connection between digital and real economy, detonating asset circulation and increasing value. Innovative application model.

With the rapid development of the NFT ecosystem, in 2021, the value of the NFT market has increased by 2,100 times compared with the fourth quarter of 2020, and consumer spending has exceeded US$ billion NFT sales have repeatedly broken records and transaction volumes have risen steadily. As a result, hackers and criminals are coveting this emerging field. Therefore, Armors emphasizes that security is a very important key factor in the development of NFT. It is the cornerstone of the rise of NFT.

As we all know, the underlying technology of NFT is blockchain. Many people have a misunderstanding about NFT, thinking that NFT storage is absolutely safe, but it is not. Although NFT may represent paintings, music, videos or games, due to memory reasons, NFT metadata and media are often stored in a centralized off-chain, such as hosted by an auction platform. This means that NFT metadata may be at risk of loss. Once the files represented by these NFTs are lost, the NFTs will also lose their value.

First of all, how to safely store NFT metadata is an important problem that needs to be solved in the development process of NFT. Armors believes that distributed storage protocols can effectively solve this problem. Distributed storage solves the market risk brought by centralized storage due to its decentralized data storage characteristics. In addition, the distributed storage protocol is based on content addressing. It identifies content by its password hash instead of its location. When the NFT minting is completed, its encrypted hash value will never change, which ensures that the chain always returns the same content. Compared with data storage on the cloud, distributed storage avoids the risk of possible changes and can retain NFT data for a long time.

Second, a series of defensive measures need to be taken to protect cryptocurrency and NFT assets from hackers.

If proper precautions are not taken, these hackers can use a series of techniques to steal your NFT assets. Attack vectors include: implanting Trojan horse virus files, stealing login information and other information; using malicious software to record keyboard input and stealing passwords; using malicious software to obtain screenshots to obtain sensitive information; by hijacking DNS, creating phishing pages, and cheating The mnemonic phrase of the user’s wallet.

How to effectively protect our NFT assets and transaction security? Armors recommends the following:

First, avoid using the same password. The recent attacks on MetaMask and Nifty Gateway are likely to be caused by password leaks, and the victims used the same password. Armors reminds everyone that you must remember not to use the same password, and keep the password confidential and not leak it. If you want to buy NFT collectibles on a centralized platform such as Nifty Gateway, it is recommended that you must enable 2FA two-factor authentication and do not disclose your mnemonic to anyone.

Second, buy a hardware wallet. Hardware wallets are cold wallets, which can effectively protect the security of your NFT assets. The cold wallet can guarantee that in most cases it is hardly attacked by hackers, which is also the basis for protecting the security of NFT assets.

Finally, multiple wallets distribute NFT assets. Such distributed storage of NFT assets in multiple wallets can avoid the risk and loss of theft to the greatest extent. At the same time, be fully aware of phishing websites and Trojan horse software. Pay special attention when transferring NFT assets from hot wallets. Do not click on any external URL links. Be cautious in operating transactions outside of wallets and trading platforms to avoid hackers from stealing information and causing insecurity. Avoided property damage.

Armors was established in 2017 and is one of the earliest professional blockchain security organizations in the industry. Up to now, Armors has provided security audits, penetration testing, cross-chain migration, platform security and other guarantees and services for more than 2,000 blockchain platforms, exchanges, wallets, DApps and other institutions and projects. In the past four years, Armors has recovered more than 32,000 BTC in asset losses for customers.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/security-is-the-cornerstone-of-the-rise-of-nft/
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