In addition to representing items in games, NFTs can also be used to encrypt information. This makes them an important part of privacy and security. They can be particularly useful for blockchain-based applications where NFTs are used to store sensitive data. All data must be safeguarded in blockchain-based applications. If you want to store sensitive data on the blockchain or already stored data, you must safeguard it with NFTs. Because the data would need to be decrypted first, it might be difficult for hackers to obtain this information. HapPhi is building overlays on OpenSea to aid NFT usage.
Since they are a way to store data on the blockchain, you might wonder if NFTs could be used for storing sensitive data. Furthermore, could an NFT be used to encrypt that data? The answer is yes and yes. The same properties that make Non-fungible Tokens so great for representing unique in-game assets also make them excellent for encryption. Let’s take a look at why and how. A non-fungible token (NFT) is an ERC721 standard token that represents a unique asset. Think of it as a one-of-a-kind digital token that can be stored on the Ethereum blockchain as part of an NFT package. These unique tokens can represent anything from in-game items such as swords or shields, to more abstract concepts like deeds for real estate or shares in an organization. Because each token is different, it cannot be traded with any other tokens of its kind; hence the ‘non fungible’ designation.
What is encryption?
Before we get into the details of using NFTs for encryption, let’s start by taking a look at the basics of encryption. The word ‘encryption’ stems from the Latin ‘encryptare’ meaning “to conceal or make a thing secret”. In computer science, encryption is a method of protecting information from being accessed by unapproved parties. It involves taking data, encrypting it, and then storing the encrypted data in a way that only those who have the correct key or passcode can access it. This means that the data is completely unreadable to anyone who does not have the key or passcode. The main point of encryption is privacy. By using encryption, individuals and organizations can make sure that the information that they store and share with others remains private and secure.
Why use NFTs for encryption?
As we have discussed, NFTs make it easy to represent unique, digital items. One of their most interesting properties, though, is that each token could also be encrypted with a key. Doing this would make the token completely unreadable. Unlike traditional digital storage methods, though, NFTs do not require you to store the decrypted data on the blockchain. Since each token is unique, you can store the decrypted data on the blockchain as part of the token. Because of this, using NFTs for encryption can be a more secure and efficient way to store data on the blockchain than traditional methods.
How to encrypt using an NFT
If you want to use an NFT to encrypt data, the first thing you need to do is find a suitable token. One that is unique and has not been used to represent anything yet. You can do this by searching for tokens on the blockchain explorer Etherscan.io. Most blockchain explorers have a search bar where you can enter the name of the token you are looking for. When searching for a token you should make sure that it is unique by searching for its specific name and checking if there are any other tokens with the same name. When you have found a suitable token, you can then create a new ERC-721 contract that uses the token as its identifier. This can be done using the ‘Create a new contract’ option in the ‘Contract’ tab of your wallet. When creating the contract, select the ERC-721 token you found and enter the number of units you will be using. For example, if you want to store the decrypted data of 10 keys, then enter ‘10’ into the ‘Units’ field.
As we have seen, NFTs can be used for more than just representing in-game items and other assets. They can also be used to encrypt data, which can make them an important part of security and privacy. This is particularly useful for blockchain-based applications where NFTs can be used to store sensitive data.
If you are building a blockchain-based application, it is important to ensure that all data is secure. This could be data that you want to store, or data that is already stored on the blockchain. If you are storing sensitive data on the blockchain, you might want to use NFTs to protect it. This can make it harder for hackers to access this data, as it would need to be decrypted first.