Subscribe to Entrepreneur for $5
Subscribe

Blockchain, NFTs and the New Standard for Identity and Security

Role of Blockchain and NFT in security and identity.

By
Opinions expressed by Entrepreneur contributors are their own.

Blockchain and non-fungible tokens (NFTs) are two of the most popular technological innovations in recent years. In today's world, where data is frequently hacked, and identity theft is on the rise, blockchain and NFTs are providing a new level of security and identification.

Non-Fungible Tokens (NFTs)

Blockchain technology uses cryptography to generate an unchangeable record of transactions that can't be tampered with. NFTs are represented by unique cryptographic tokens that provide an added layer of security by ensuring that each asset is tracked and verified. Also, they are designed to serve as a type of digital asset, which represents rights and privileges.

Related: What Is an NFT? Inside The Next Billion-Dollar Crypto Sensation

They can also be utilized to virtually depict something scarce, such as in-game items or collectibles. Due to their uniqueness, they allow for more complex identification and security.

NFTs enable businesses to create a system where digital assets can be securely stored and transferred between users. This is a fantastic tool for keeping sensitive information safe,  it has the potential to revolutionize how we use the internet.

How Blockchain Technology Sets New Standards in Cyber Security and Identity Management

Blockchain technology has established new standards in cyber security. By providing a decentralized platform for the safekeeping of data, it protects various organizations from cyber assaults. It may also be utilized to keep track of people's identities. It embodies security innovations through the following aspects:

Security through Blocks

Blockchain technology, as a distributed database, maintains a continuously growing list of data records called blocks. Each block includes a cryptographic hash of the previous block, a timestamp, and transaction data. Its immutability is one of its most prominent features. Furthermore, it is used to verify users and confirm that their identities are not compromised.

Private and Public Blockchains

Related: Secure Your Data with Blockchain

A private blockchain is a database that allows enterprises to communicate information without a central authority. On the other hand, a public blockchain is accessible to anybody on the internet to be viewed and used. Both are safe and tamper-proof since due to their transparent and secure nature. As a result, they're perfect places to store sensitive data.

Decentralized Technology

The blockchain network allows users to store data decentralized and may be used for high-level encryption. The decentralized nature assures that any one entity cannot control the hacker's identity or card information. Hacking attacks on the network are now impossible since they would have to attack 51% of the system simultaneously.

Smart Contracts 

Smart contracts are self-executing contracts that employ blockchain technology to enforce the terms of a deal automatically. They build trust and enforce security in a business by being tamper-proof and transparent. Additionally, investors may use them to manage identities. This  aids in the prevention of identity theft and fraud.

How NFTs Are Influencing Cyber Security and Identity

Related: NFTically Secures Additional Seed Investment

As the world becomes increasingly digital, keeping data private is more critical than ever. NFTs are one method that entities use to accomplish this. Kwiktrust is one entity that utilizes NFTs to secure data. It's a digital security firm that specializes in offering secure file sharing and storage solutions. They utilize blockchain-based technologies to create tamper-proof records of transactions.

The following are a few examples of how NFTs are being used to promote cybersecurity:

Integrated Security Features 

NFTs work in tandem with other security elements to promote and affect cyber security. These include, but are not limited to, an encrypted messaging service, an encrypted data storage platform, and the ability to generate digital signatures on transactions. NFTs may interact with identity providers via authentication, ensuring that users are not impersonated.

NFTs improve cyber security because they are difficult to duplicate and link to other digital assets. The use of cryptography also enhances protection. They are also versatile, which means users may utilize them in a variety of ways. Furthermore, NFTs provide a supplementary layer of security for enterprises and individuals who want to secure their digital assets.

Smart Encryption and Validation

Related: Decentralized Blockchain Solutions to the Rising Oracle Challenges

NFTs employ a "smart encryption and validation" method to improve the security of digital assets. Their programmed system is simple and elegant, allowing anybody with an internet connection to acquire and trade them easily. Smart encryption and validation are used in NFTs to improve security and identification in public and private blockchains. 

As much as Blockchain technology could be reliable, the sector is still new to many people. There are chances that one could lose money investing in NFTs, but leveraging platforms like KwikTrust could shelter investors from such dark clouds. KwikTrust is an e-validation platform that proves ownership of NFTs and digital assets via self-certified and third-party validation files stored in blockchain networks.

NFTs' encryption and validation technology are unrivaled. Each unit has a digital signature, making it impossible to reproduce. Such technologies are raising the bar for the statistics sector, which is concerned with database access security. NFTs prevent others from stealing the artwork of others. Each work has its digital signature, which identifies a project to its owner.

Offering Secure Storage

Blockchain technology's key characteristics make it an ideal platform for non-fungible tokens. Blockchain is decentralized, making it resistant to hacking and corruption. Additionally, it is immutable, which implies that data cannot be altered or erased once recorded. 

Lastly, the blockchain is completely transparent, allowing everyone on the network to see all transactions and data. Blockchain's immutability, security, and transparency make it an excellent storage option for NFTs since they may be kept securely and with surety that they will not be tampered with.

Securing Digital Ownership of NFTs and Digital Assets

Related: 5 Reasons Why NFTs Are The Metaverse's Ideal Revenue Model

Keeping track of all the activities undertaken in a day may be difficult. With blockchain technology becoming more popular every day, there are various methods to safeguard your digital assets. As much as Blockchain technology may be trustworthy, it is still relatively new to many individuals.

There is a need to maintain the integrity and security of transactions. Several projects have employed NFTs to represent tokens to their networks, including Request Network, POA Network, Civic, etc.

Tanveer Zafar

Written By

Entrepreneur Leadership Network Contributor

Tanveer Zafar is an experienced writer. Zafar is passionate about covering topics on productivity, creativity, entrepreneurship, blockchain, work, lifestyle and technology.