Why you should care about the security of your NFTs
Shot at NFT.NYC 2022, this video describes why you should care about the security of your NFTs, everything you need to care about as a collector, and also some additional things that creators should be aware of.
Welcome to NFT.New York!
We're excited to celebrate the amazing diversity and technological innovation that is the NFT community.
We wanted to outline some critical points when dealing with NFTs that everyone should be aware of, and open up avenues for further education and discussion.
Ownership: One of the things that Web3 enables is direct ownership of assets. Examples of various assets can be a cryptocurrency, NFT, piece of artwork, or your inventory and royalty wallets (if you are a creator).
Security: The ability of ownership thus leads to the question of security and protection of your assets (as well as inheritance). Why should you think about the security of your assets, and how can you ensure your assets can be passed on in the future?
Collectors: As a collector of NFTs, you are collecting them from a number of different blockchains. This ultimately means that you will have a number of different wallets to store them in. These wallets need to be backed up - even if you keep them in cold storage or a hardware wallet.
Risks: There are risks from all fronts when dealing with cryptocurrency. These can include using bad software (such as vulnerabilities from Metamask), theft from online exchanges or marketplaces, and theft of physical cold storage wallets. But the most likely scenario many face, is that you didn’t write down your seed phrase (and your computer died)!
Simple accidents can lead to huge disasters.
Backing up the wallets that your NFTs and artwork are stored in is vitally important. Over 50% of NFT collectors have lost access to the media associated with their NFTs.
Creators: For creators, there are some additional things that should be backed up. Not only do you need to back up your original art, but very importantly your Royalty wallet as well. Your Royalty wallet is the designated wallet into which residuals and royalty payments will be deposited.
There are lots of reasons to consider how you will protect your ever-expanding collection of NFTs and digital artwork. Head over to securemycrypto.org to learn more about all the different ways you can protect your assets.
Wasim is a serial entrepreneur with five exits, and an advisor in the fields of AI, blockchain, cryptocurrency, and encryption solutions. At Vault12, he led the private and public fundraising efforts, and focuses today on expanding the Vault12 ecosystem. His crypto experience began with AlphaPoint, where he worked with the founding team to launch the world's first crypto trading exchanges.
Previously he was a founding member of Voltage Security, a spinout from Stanford University, that launched Identity-Based Encryption (IBE), a breakthrough in Public Key Cryptography, and pioneered the use of sophisticated data encryption to protect sensitive data across the world's payment systems. Wasim serves on the board of non-profit, StartOut, and is a Seedcamp and WeWork Labs global mentor.
Wasim graduated with a Bachelor of Science degree in Physics and French from the University of Sussex.