Are there cybersecurity problems within the NFTs world? As it is a new technology that is incomplete in itself and that, in turn, is developed based on different standards developed by different organizations and entities around the world, the answer is yes; yes, there are technological risks inherent to this type of digital collectibles or non-fungible tokens (NFT).
We start from the basis that no technology is 100% secure, so NFTs are not infallible or a guarantee in the short, medium, or long term. However, the ERC-721, from the Ethereum network, is the most used today to create this digital asset.
The cybersecurity problems inherent to NFTs or non-fungible tokens
Automation plays an essential role in managing the buying and selling of NFTs. This process also seeks to generate traceability and monitor the operations that are taking place sequentially. This is carried out from the so-called smart contracts, a software code executed on a sequence of blocks or blockchain networks.
One of the consequences, given the large volume related to the demand for cryptocurrencies, is the increase in commissions linked to each transaction. Especially the so-called ‘mining’ key in commerce.
Cybersecurity problems linked to the operation of NFTs
The sale of NFTs on public networks, such as Bitcoin or Ethereum, is premised on the anonymity of the buyers. What does this mean? Anyone can buy as long as they have that ability, regardless of where the money comes from. Here is one of the significant cybersecurity problems linked to transactional operations.
What does this imply? That it becomes complex to identify who a non-fungible token belongs to and whether the money used to acquire it comes from a legal source or not its origin.
Another existing cyber risk is that an NFT may not be authentic and may not represent the asset it refers to. In colloquial terms, it would be a false asset. Currently, the authentication at the origin of a physical asset that represents a specific NFT is one of the significant challenges facing the trade of digital assets. That blockchain technology is unable to guarantee, for now.
For their part, NFTs are susceptible to computer attacks despite being encrypted and having access only via a password, which makes it much more difficult to fight against this type of harmful action.