Significant changes in various industries have been witnessed in the past couple of years, particularly because of the COVID-19 pandemic. With the disruption in regular activities, there has been a growing emergence of new markets that lean toward a more digital-oriented nature. One of which is the booming popularity of NFTs or Non-Fungible Tokens.
In the second half of 2021, the NFT trading volume has surged to nearly $11 billion. It has constantly been attracting more investors, prompting them to shell out hefty sums into this market. But what do people exactly see in NFT that makes it so enticing?
Among the attractive features of NFT is its unique and blockchain-based way of creating and proving ownership of a digital asset. It enables permanence in the ownership of items like digital artwork. This is one of the reasons why many are using NFTs to purchase photos, digital versions of paintings, and other pieces of digital art.
Besides virtual art pieces, the application of NFTs also span memes, GIFs, music, video game items, trading cards and other collectible assets, pop culture items, and even popular tweets, among others.
Still, NFT is not only enticing for legitimate individuals. Many criminals also want to exploit this market for their fraudulent motives. Hackers will try to circumvent passwords through phishing scams and SIM swap attacks to compromise digital accounts.
Consequently, it is ideal that passwords and other weak authentication practices are replaced with more robust identity verification technologies to protect NFTs. Many vendors already offer passwordless solutions that harness FIDO2 authentication and biometric technology.
Biometric identity verification coupled with cryptographic keys provides layered protection against fraudulent attacks while reducing friction throughout the process. This multifactor authentication process is not quickly bypassed with tactics commonly used against knowledge-based credentials.