The world is enhancing every day and the faces of technology are reaching great heights. Everything these days are into turning digital. One such invention that has taken the most attention is the use and functions of NFT. NFT stands for non-fungible tokens.
NFT means any particular subject cannot be traded and cannot be exchanged. Non-fungible tokens are different from others and have one major difference with others This is where the NFT stands out different from other principles which are cryptocurrency and Bitcoin.
Physical money or cryptocurrency is fungible meaning they can be exchanged and traded. Transactions or trading through cryptocurrency apply more tax and have been recently approved by India.
NFT marketplaces struggle to limit plagiarism
The non-fungible tokens are used for protecting and proving the ownership of digital goods. Though non-fungible tokens aim to prove the ownership of the digital goods, a particular file that is under NFT can be copied and pasted but the unique receipt will only belong to the true owner as the non-fungible tokens cannot be replicated.
It is not easy to put a particular good under non-fungible tokens, one needs to mint a certain subject of digital good before getting it under Non-fungible tokens. The OpenSea that mints digital goods for free is called lazy mining.
There are websites and platforms like OpenSea which use this lazy minting, by collecting some portion of the selling price as gas {minting fee} and allowing the people to mint a particular digital good for free. Some people use control paste and control copy methods to steal and copy someone’s digital good, which is called plagiarism.
Plagiarism if done in non-fungible tokens is also a crime. The non-fungible tokens face this major problem of plagiarism, where people copy-paste the owner’s digital good.
Artist vs anonymity
The major drawback of non-fungible tokens is that it is a decentralized process. Meaning the working of the non-fungible token is not centralized under any authority. Because of this many people try to steal and misuse a particular digital good.
In anonymity, the non-fungible assures that trade can occur under a decentralized process. However, some personalities say that this decentralized form which is creating the problem, soon will find a solution and resolve the drawbacks. Because of an unauthorized process, the chances of completed assurance of trade of digital goods is limited.
Stolen content
As it is known that the working of non-fungible tokens is decentralized, the chance of stealing content has raised. Also with the process of lazy minting, the buying, selling and trading of a digital good is circulated to different peoples and hence the chances of the unique content of a particular digital good are reduced. To get approved in the non-fungible token, the process of minting is very essential. The only legal money required is to pay for the minting process called gas. But yet some people sell this without paying the gas.
However, the non-fungible token claims for proving the ownership of the digital goods, if such practices of lazy minting are performed, the content could be stolen.
Phishing attack – drop in trading volume
As we know that this non-fungible token works on a digital platform, the chances of the tokens being hacked are more. If an application is working on an online platform, there are hacker which uses different websites and applications to hack and trick people. NFT has also been under this attack. non-fungible token attacks are called phishing attacks.
A phishing attack is an act where the non-fungible tokens face losses. This is because of the stolen content and free minting. The platforms like OpenSea allow people to disturb the selling price of a digital good. If the mining fee is not collected, the whole buying selling of the digital good is reduced and hence a visible difference in the drop of trade volume is seen.
Such kind of phishing attack is called cyberattacks where a group of people send a message to the owner of the digital good and hence reveal the structure of their digital good and steal it.
The main cause, because which hackers can steal content is because of the decentralized process of the non-fungible tokens. If the safety aspects of the non-fungible tokens are increased and improved, such chances of phishing attacks would reduce, and also drop in trading volume would be handled.
OPENSEA hit by trading attack
As known, OpenSea is a platform wherein people can mint for free, and hence the trading volume is reduced. Because of the existence of such platforms, the hackers get a chance to steal content and hence disturb the overall budgeting and trading of a particular digital good.
non-fungible tokens work under decentralized processes and are responsible for proving the ownership of processes as well. Whereas Platforms like OpenSea which is the world’s largest marketplace for non-fungible tokens. The OpenSea has seen a significant drop in trading volume after the phishing attack, which happened recently in February.
Conclusion
Such types of inventions are if invented, need to be formed in such a way that all the safety are taken into consideration. And also inventions like non-fungible tokens are different from other applications and hence their making of hardware and software is also different.
The phishing attack is mostly done by hacking or tricking people with a message or an email, and asking people indirectly to reveal their information about digital goods. Such fraud emails usually ask people to send passwords through emails.
People should be aware that if a company wants to know any details about the owner of the goods, the company would never ask for any personal passwords of the people. But such hackers, trick people in such a way that the people provide personal passwords and information via mail or message.
