Are NFTs Safe to Buy?

are-nfts-safe-to-buy

TL;DR

  • Keeping an NFT safe is largely dependent on the security of the issuing project
  • NFT marketplaces also have some roles to play in safeguarding NFTs.
  • The smart contract of an NFT could also be compromised.

The Role of the Issuing Project

We typically know NFTs to exist in multiple formats, such as images, audio files, and videos. But when a collector acquires an NFT, what they really purchase is not the NFT itself but the unique identifier that is attached to the NFT.

NFT Marketplace Security

For all the campaigns about decentralization, centralized platforms like Opensea and Rarible are still popular marketplaces for users looking to acquire premium digital art. The most important point here is that NFT marketplaces hold the private keys to all digital art on their platforms, and in the event of any breach in their security, hackers can successfully cart away with several NFTs.

Smart Contracts Vulnerability

Hackers could also look to exploit the smart contracts of an NFT project. Most blockchain projects are built on open-source programs where the underlying codes can be viewed by anyone. This also means that hackers could seek to exploit the codes by searching for weak areas they can capitalize upon.

Bottom Line

There is little a collector can do to prevent the loss of their NFT. Securing NFTs mostly rests on the shoulders of the platform issuing the collection, while NFT marketplaces must also do their bit to ensure the security of their platforms. Conclusively, the safety of an NFT is as good as the security measures put in place by the NFT project and the NFT marketplace.

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