OODA Loop – NFTs and Cybersecurity
Like other digital solutions, an NFT (non-fungible token) is exposed to the danger of cyberthreats. As an NFT uses blockchain technology, the cybersecurity problems that might affect an NFT are similar to those that affect a broad range of blockchain technology solutions. Equally, the token is only as (cyber)secure as the technology is secure from which it is formed. Although NFTs are still not common and are used little due to the technology being relatively new, the associated cyberthreats are already apparent. Above all, NFT security depends among other things on the technology used to create it. One of the major security factors is the level of decentralization of the blockchain system from which the NFT is created. The more centralized the blockchain system, the greater the risk of an unauthorized person taking control. Although this is at odds with the idea itself of distributed ledger technology, which blockchain is, blockchain is created by one or a small number of parties. This technology is intended to ensure security due to roles played by a large number of parties in the operation of that technology, as this minimizes the risk of an unauthorized person taking control. The lower the number of parties managing NFT production projects, the easier it might be to gain control of the entire token resources created in the project. This might even result in them being lost completely.
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