How Are NFTs Protected?

With the popularity surrounding NFT on the rise, it’s important to consider the protection if you are looking to buy or sell in the market. Knowing what exactly you are buying is important, especially if you are making a large investment.

NFTs have become one of the best ways for digital artists to sell their goods by tokenizing their work and putting it on platforms that can ensure the security of their work and guarantee that the copyright remains with the original creator.

NFTs can have proprietary names added to their tokens that can be protected as trademarks but this may cause consumer confusion. However, most NFTs come with smart contracts that show all details of copyright ownership as well as any royalties the original creator is entitled to should the NFT be resold on the market. 

How are NFTs protected?

The first thing to know about NFTs is that they are logged onto a blockchain which will prevent any fraud or duplication from happening. As NFTs are a token that contains digital media, the digital media can be replicated onto other NFTs but the token itself cannot be replicated.

This is due to the collectibility of NFTs and ensures that if you have the original copy of a particular artwork or other digital format, then you will be cited as the original owner which makes your NFT more valuable than someone who has bought the 1000th NFT containing that same digital media.

It’s the scarcity and collectibility that makes these NFTs so valuable and depends on how many are available. The less there are on the market, the higher the demand will be which drives the price up. 

But how can you be sure that your NFTs are fully protected? We’ve gathered all the information you need to know about what blockchains are and how they work to ensure that all of the NFTs and the information relating to them is fully secure and free from risk. You’ll have a full understanding as to how it works and can make investment decisions knowing that you are fully informed to do so. 

What are blockchains?

Blockchain technology is probably a term that you have come across time and time again when researching NFT and there is a good reason for it. Blockchain is a difficult concept to fully grasp but it is essentially integral to the buying and selling of NFTs and ensures the security, meaning that it is an important element of the digital world especially with the rising value of cryptocurrencies and NFTs.

Due to its complex nature and intricate technology, it can be expensive to run and detract a lot of companies but the most successful sites and exchanges are the ones that have the blockchain technology to support their assets.

With more improvements being made to blockchain technology to ensure that it is more accessible and user friendly, it will soon become utilized by all sites and exchanges as it becomes more readily available. 

What Blockchain technology is in simple terms is the structure that stores all transactional records relating to digital assets such as NFTs within a network that is connected to hundreds of computers around the globe. Usually, these kinds of storage are known as digital ledgers.

The transactions that are logged have to be authorized by the seller and the buyer in order to prevent any cases of fraud or duplication meaning that important information is recorded in the blockchain which means it is extremely secure. This transactional information is available for anyone to see but it cannot be tampered with thanks to the advanced technology. 

Why is Blockchain popular?

Blockchain is popular because of how secure it is. The easiest way to think about it is like online banking where you are transferring money to someone from your account.

You will need several passwords and keys in order to do so and once the transaction is complete, it is then logged onto your account. However, with online banking there is a level of risk which is where blockchain technology exceeds and finds it niche.

Blockchain prevents any third party from the transaction and instead facilitates a faster movement of transaction which saves both time and money as well as keeping the information more secure as there are fewer parties involved in any given transaction. 

Blockchain can also be used to support an array of platforms and is integral to ensuring that all cryptocurrencies and NFTs are secure.

A lot of people think that Blockchain and cryptocurrencies are used interchangeably, however, whereas Blockchain can be applied to the security of cryptocurrencies and other industries, Bitcoin and other cryptocurrencies rely on the Blockchain to keep them secure and to prevent any third party from infiltrating accounts or disrupting the transaction. This prevents any duplication or fraud from occurring and makes it the most secure form of transaction available in the digital world. 

So what are the advantages of Blockchain? While there are many to list, here are the most important ones that you should be aware of:

The first advantage is that it is highly secure thanks to the digital signature feature which helps to facilitate fraud free transactions. It’s impossible for data to be corrupted and changed by those who don’t have access to the private keys associated with a particular NFT. 

The second advantage is that it boasts a decentralized system meaning that there are no third parties involved in the transaction. The only parties involved are the buy and seller which means that the transaction cannot be accessed by a third party such as a bank or government. This means that the transactions can be done quicker and safer for a more smooth and convenient experience. 

The final advantage you should be aware of is Blockchain’s automation capabilities. Thanks to its programmable features, it can generate systemic actions and payments immediately after the transaction has been made. This means that the log will contain up to date information as well as meaning you have access to your NFT immediately. 

How does Blockchain technology work?

Now that you know why Blockchain technology is so popular and why it is important, it’s also essential that you understand how it works. This will help you to understand how the technology actually assists in ensuring the protection of your digital assets.

Since it is made of a new technology, there is scope for improvements and advancements to be made and it is projected to become integral to a variety of digital industries in the future. So what technologies does Blockchain apply at the moment? There are three main technologies that you should be aware of when researching Blockchain.

The first of these technologies is the Cryptographic keys which is a peer to peer network that contains a shared ledger. This means that it can store the transactions and keep a record of the network securely. There are two different types of Cryptography key which are the Private key and Public key.

As expected, both keys are needed to perform a transaction between two parties as they will help to produce a security identity reference. It is this specific technology that helps the Blockchain to be as secure as it is and is often referred to as the “digital signature” as it helps to authorize and control transactions. Once the digital signature has been verified, the peer to peer network is notified so the transaction can be completed and logged into the Blockchain. 

The second technology used is the Process of Transaction which is the method in which transactions are confirmed and authorized. Normally, transactions are completed using both Private and Public keys with the first person attaching the relevant information to the public key belonging to the second party.

This information is then collected into a block that contains important details relating to the NFTs including the digital signature and timestamps. The identities of the buyer and seller are not included in the transaction to protect their personal data. The transaction is then completed when the buyer enters their private key which is then matched with the block.

The final technology that Blockchain incorporates is Hash Encryptions which help to secure the data on the SHA256 algorithm which protects all information stored in the system. This includes users’ personal information such as the receiver’s address, the transaction itself and the details of both public and private keys.

It is transmitted across the world and then verified by the Blockchain. The SHA256 algorithm is one of the most sophisticated systems and is almost impossible to hack thanks to its ability to take all of the information and create a simple process. 


NFTs can be protected thanks to the blockchains which use a variety of mechanisms which provide all history of transactions relating to the NFT which can be viewed by authorized viewers. The only people who are authorized are those who have the private keys relating to the NFT.

The most popular blockchain is the Bitcoin Blockchain and is the best example of displaying how far and advanced the technology has gotten. It is thanks to the intricacy of the blockchain technology that makes NFTs and the cryptocurrencies associated with them rise in popularity and value with signs of extra increasing projected for the upcoming months and years.

Blockchain is clearly a technology that is going to dominate the digital landscape in the future and ensure the protection of NFTs and cryptocurrencies.