Paragon Protocol: The hidden security threats of NFT asset stored off-chain
When using the centralized storage, once the stored resources are inaccessible due to site closures or hacking attacks, the ownership of the NFT is just an empty shell, because the most important content resources are partially lost.
June 11, 2021 /MarketersMedia/ —
As more and more NFT artworks are sold at sky-high prices, many investors have pay attention to the field, which makes NFT a popularity. For NFT assets, it may be only one step away from low value to millions of dollars. But regardless of the value, asset security is crucial, which is easy to be overlook compared to transactions. The resulting asset security issues will bring irreparable losses to participants.
As a non-fungible token, NFT’s key innovation is to provide a way to mark the ownership of native digital assets, empower all valuable assets, and promote the continuous appreciation of NFT assets. In this regard, Soul, the core member of the Paragon development project, shared at a blockchain conference that, “The total value of the NFT of encrypted artworks exceeded 2 billion dollars by the end of May. With the increasing transactions of NFT artworks, its trading platform has also emerged rapidly. There will always be speculators in the development of any industry in the early days. By analyzing a large number of NFT platform artworks and analyzing their network messages and storage URL, it can be found that 70%-80% of NFT projects are stored off-chain. This means that the important media assets for NFT artworks use centralized storage. Although the smart contract uses ERC721 and other protocols to determine the ownership of the NFT, its corresponding pictures, videos and so on, are stored to the accessible centralized nodes that it cannot be guaranteed to be permanent, which will cause the biggest hidden danger of NFT asset security.
When using the centralized storage, once the stored resources are inaccessible due to site closures or hacking attacks, the ownership of the NFT is just an empty shell, because the most important content resources are partially lost. NFTs that do not use a decentralized storage mechanism can be called pseudo-NFTs, which will seriously hinder the healthy development of the NFT ecosystem. Even the well-known NFT trading platform OpenSea still partially uses centralized storage resources. Although large platforms such as OpenSea provide users with a path to upload IPFS through third-party services, the actual operation is complicated. Therefore, by default, users can choose not to upload IPFS and directly fill in the http address of the centralized storage. However, this will make users buy non-chained NFT assets, which is very easy to cause losses of assets.
The core value of NFT lies in the content itself. If the storage is not secure, the platform and user assets will not be protected. In this regard, Paragon, a protocol-level project aimed at activating the value of high-quality NFT assets, puts forward a constructive plan for how to ensure the security of NFT assets. Paragon emphasizes that IPFS data on the chain can ensure the security of NFT assets. At present, only NFT artworks that are connected to the IPFS protocol are decentralization. In addition, features such as distributed storage and point-to-point transmission brought about by decentralization are important prerequisites for ensuring the security of NFT assets.
In response to the problem, the Paragon directly provides IPFS access points, without requiring a third-party service, which makes it efficient and convenient for users. In this way, the user’s NFT asset data can be protected from the hidden dangers of asset security caused by problems such as Internet failure. The IPFS protocol can protect NFT assets in an encrypted manner, and the form of decentralized storage ensures the security of NFT artworks for each user.
One thing is for certain that a sound NFT platform, such as the Paragon, will drive the development of the entire NFT ecosystem. For investors, it is necessary to pay attention to identifying NFT platforms that are really effective while setting foot in the NFT field, so as to maximize the value brought by the benign development of NFT. It can be expected that with the promotion of platforms such as the Paragon and the increasing value created by users, NFT will enjoy a rapid development in a few years and become the most promising asset in blockchain.
Contact Info:
Name: Bill james
Email: Send Email
Organization: Paragon
Website: http://www.paragon.cool
Source: MarketersMedia
Release ID: 89026965
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