A fungible asset, similar to money, is something with units that can be readily interchanged. However, if it is “non-fungible,” this would be impossible as it has properties that cannot be interchanged with something else.
NFT or Non-Fungible Token have exploded in the past year, with billions of investors pouring billions into this asset class. It is a relatively new technology, blockchain-based means of declaring ownership of a unique digital asset.
The most popular application for NFTs is digital artwork but is not limited to visual and art mediums. In truth, it includes art, music, video game items, trading cards, collectibles, sports highlights, and more. Nevertheless, NFTs are gaining popularity due to the popular demand for buying and selling digital artwork.
NFTs are usually bought with cryptocurrencies or in dollars, and the blockchain is responsible for recording transactions. But why are people willing to pay a premium for something, such as a digital artwork, when everyone can share and view it? That is because people have an innate desire for ownership. There is a specific value of owning a particular piece of digital art for many.
For instance, sports enthusiasts can purchase NFTs in sports highlights moments of the game. While the public can see such highlights, they are essentially buying the status as the owner of a unique NFT due to digital signature.
NFTs, offer people the chance to own any digital content of leading platforms independently. It provides proof that an individual has sole ownership of a digital asset. Due to the significant money spent on NFTs, it became a prime target for hackers. As such, investors must use robust authentication methods when securing an NFT for Fraud Prevention.
Moreover, having a secure authentication method also helps in eCommerce fraud prevention which is especially important now that businesses have gone digital.
Visit LoginID’s website to learn more about NFTs, and How to Best Protect Them.
This Infographic is shared here after legal permission from: LoginID’s