You are probably already a bit familiar with cloud storage — saving things like files and photos online for later use — but did you know that cloud storage can also be used to help keep your expensive digital assets safe?
NFTs (Non-Fungible Tokens) are possibly the biggest trending, most hyped and sought after assets on the market today, with every influencer and their mother rolling out NFT mints and top creators raking in profits in the millions. To many, NFTs represent an important milestone in digital ownership — previously a near impossible feat. For the first time ever, people can own things like digital images, videos, GIFs and even items in video games.
But what are you actually buying, and how is it stored safely? Do you even know where it is stored? In essence, buying an NFT means allocation of the metadata (unique characteristics of the digital asset) to the user. Therefore, owning the metadata means owning the digital asset being represented by it. As shown by Australian Geoffrey Huntley, who created the website NFT Bay, the images represented by these pieces of metadata are often saved on web servers with less than air-tight security.
Protection from theft is crucial in maintaining the value and safety of your NFT. If you physically owned millions of dollars of artwork or had an impressive vintage wine collection to boast about, you would hopefully spend a considerable amount of time and money in choosing the perfect place to store them safely and securely, rather than leave them lying around carelessly, going to waste and depreciating in value.
The same concept applies to protecting NFTs via high-security digital storage. When you purchase an NFT, the token itself exists on the blockchain and therefore the data of the NFT’s token is on decentralised storage. But as the use of cloud storage is being increasingly used to store valuable assets, the occurrence of cyber theft and data loss has also seen a corresponding surge.
Cloud technology is certainly poised to be the future, and advances in cloud technology are going to hugely define how we interact online in the coming decade. It’s well worth noting that cloud storage platforms differ from a security point of view and thus, the level of protection they can offer your valuable digital assets. The process of storing an NFT in a location other than the original supported by the artist is getting into the weeds of Web 3.0 (a vision of a new internet based on blockchains that is gaining popularity among crypto and NFT enthusiasts), so we will leave that for another article. What is simple to understand, however, is the rising interest in storing NFTs in new locations after purchase. The files that your NFT token finds on the internet are usually housed in addresses pre-selected by the NFT creators themselves. Those may pose a security problem in situations where the owner either closes shop or the address is compromised. Hackers are already stealing NFTs.
Some cloud storage providers offer decentralised encryption, where the digital file is not actually encrypted itself; rather the file is broken down into data shards and stored at different addresses, hence providing protection even when a hacker manages to get their hands on one of the files because the other shards are still missing. Other platforms offer fully centralised encryption.
An example of the latter is Treasure Cloud, which offers zero-knowledge cloud storage and client-side encryption, even for cold storage modes, essentially meaning that all your data is fully encrypted and not viewable by anyone without your unique encryption key, not even Treasure. Not all cloud providers offer this, but think about it. Complete encryption is a critical security feature, especially when storing and sharing confidential data and expensive NFT collections, making Treasure Cloud unique in its safety offerings. Treasure was built on the principle of respecting data privacy, giving you the convenience of using your existing cloud storage providers in one place.
Sign up for Treasure Cloud’s storage for complete peace of mind when it comes to security and privacy, knowing that your data is safe at all times.
And it gets better. If you’re happy with Treasure Cloud’s offerings, then earn more rewards and incentives such as an additional 10 GB of storage on top of your existing plan for every person who signs up when you refer friends to sign up for a storage plan too! Click here for more information on Treasure Cloud’s referral program.
To learn more insights and information about data privacy and security issues, data protection, how to share data safely online, or just learn more about the people behind Treasure Cloud, please visit their blog.
Note: Coconuts Media is not a financial services company, does not provide financial advice, and is not a qualified expert in the storage of digital assets—financial or otherwise. This article is part of a paid partnership with Treasure Cloud and is for educational purposes only.
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