Nonfungible tokens (NFTs) are big business — but come with significant cyber- and crypto-security risk. Part of the problem is that the NFT landscape is poorly understood. They also make up part of a massively overpriced blockchain-based network that could open the door to new security threats.
So, how do companies prepare for the coming storm of NFTs and similar crypto-markets? How do they proactively defend key assets?
Putting the Fun in Fungible
First things first: to help deflect any potential defensive dilemmas, IT security pros need to understand what an NFT is. If you’re not sure, you’re in good company. The concept isn’t exactly straightforward. Most articles focused on nonfungible frameworks are more concerned with hype than offering a holistic, simplistic definition of an NFT.
It all starts with the notion of ‘fungibility.’ As defined by Investopedia, “fungibility is the ability of a good or asset to be readily interchanged for another of like kind.” Physical currency offers an easy example — one dollar bill can be readily exchanged for another without any impact to the owners. While the bills have different serial numbers, they are functionally the same and can be exchanged at will. Assets that aren’t interchangeable — even if they’re similar or nearly identical — are nonfungible. Consider two cars, one dilapidated and one brand new. While they’re similar, they’re not the same, and an exchange would impact both parties.
In the realm of digital payment, bitcoins are fungible. While they have unique markers, one is functionally identical to another. NTFs, meanwhile, represent unique digital assets that people can’t duplicate or directly ex ..
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