💽 How does NFT minting work?
NFT (Non-Fungible Token) minting binds an artwork to a blockchain token. Minting is a backend process that uses a smart contract and a set of parameters to assign ownership and security. On initial minting, the creator may be the first owner or the original “controlled by” address.
When an NFT is sold, a new token is not created. Instead, the “controlled by” address is updated. Therefore making provenance explicit within the blockchain token.
💽 How does an NFT work technically?
A minted NFT to the Etherium blockchain is on the ERC-721 standard that implements an API for tokens within Smart Contracts. The ERC-721 standard provides the basic functionality to track and transfer NFTs.
NFT tokens operate like other crypto tokens. Therefore, NFT artwork can be bought and sold freely on connected Etherium-based exchanges or wallets.
💽 Can an NFT be hacked?
NFTs cannot be hacked individually like an email address.
An NFT is essentially crystallized on the blockchain as code and cannot be modified. The decentralization and distribution over a network tighten the security of blockchain technology versus previous singular digital storage systems. Without a singular point of failure, blockchain is much harder to corrupt.
However, a wallet holding an NFT is vulnerable to a hack. Blockchain wallets and user accounts need to be regarded and protected by the account owner as a bank or securities account. Failure to protect your tokens can place unwarranted risk on the account and vulnerable to hackers. Your security measures may include using unique login credentials, 2FA (two-factor login), avoiding phishing scams, and keeping critical information offline.