A consequence of owning costly NFT products is that it would be impossible to be returned ownership if the product ever gets lost or stolen. The idea of having NFT products stolen and taken advantage of raises the question of whether NFT platforms are trustworthy and should be relied on.
Currently, NFT platforms are unable to assist participants with stolen product problems. Considering the tight system used to ensure the transition of transactions between participants, it is difficult to fix what has already been done. NFT uses a blockchain system that prevents authoritative control or management from a single individual. While it is fair in terms of participants committing to the act of transactions, there is a lack of management aside from the digitized encryption system.
A major problem that causes this problem is the extent of security to access the NFT and crypto. Anyone can access other individual belongings as long as they know the private keys or if the user accesses a harmful website and unintentionally allows the other party to gain access to everything on their device. NFT is a digital technology that is equally as sensitive to hacker attacks such as phishing and malware problems.
To combat these problems, it is recommended for users follow the necessary steps to ensure the safety of NFT and crypto assets. Firstly, use a reputable cryptocurrency wallet and enable security settings. Make sure that the wallet has a unique password. If possible, make sure the device is protected with cybersecurity software and avoid misplacing private keys in any set of conditions. It is also important to carefully research before committing to any acts including researching NFT products and reliability, navigating the web carefully, and ensuring the reliability and identity of the customer or anyone the participant is setting up transactions with.
It is not a surprise that multiple individuals and platforms are working to solve this issue and ultimately strengthen NFT platforms in general. A company called Upstream is focusing on designs to combat this problem. Compared to a typical NFT platform, the product is not comprised of complicated code but will function as a full-stack platform to build an environment with no central authority, the sole purpose of blockchains. This solution will fix the flaw existing in current platforms and ensure better security for NFT product storage, a combination of qualities from hot and cold wallets.
Vault DAO, a product from the platform is designed as a multi-signature wallet that requires verification of identity through a series of signatures from multiple accounts to authorize transactions. This is beneficial as users would be able to set up multiple accounts with different passwords that would reduce the risk of identity theft in the case that one or more keys were revealed. In addition, this platform allows users to opt for another option that would allow participants to delegate signatures to trusted partners for more security measures.
My Thoughts on Combatting NFT Theft
With Vault DAO as a starting point, I do believe that there would be more advancements that would allow physical or indirect forms of verification. I propose potentially more advanced devices designed in the future that would be used as a form of digital wallets rather than using frequently accessed devices connected to the cloud. The device may emit a frequency or some sort of encrypted message after accepting a series of security measures. The device will store NFT and other digital products. It may also reveal a different QRcode that can be scanned through devices such as phones and desktops to access the wallet through another application on the user’s device.
Just like how digital technology advancing creates the risk of more harmful malware, blockchain technology is facing its expected setback. However, there would be more security measures developed in the future that would prevent this. Considering the possibility that we might become reliant on digital payments in the future, it is possible that a digital wallet is created instead of physical wallets holding paper money.
Sources
https://techcrunch.com/2022/08/03/upstreams-new-vault-could-help-nft-holders-sleep-at-night/
https://vpnoverview.com/internet-safety/cybercrime/nft-scams/
