An NFT translates intangibles to authenticate a work. These include videos, audio recordings and illustrations. Buying an NFT means being able to store it in your own virtual space (the blockchain) with the certainty that it is protected in the world of the web. Therefore, you are the sole owner and the only right to use it. These purchases allow artists to earn money through the cryptocurrency during the development of the new art, 2.0.
The concept of NFTs is growing enough to raise the question of whether insurance would be necessary should something go wrong. However, the transactions are secure and the virtual world allows almost no possible mistakes. Everything appears to be perfectly safe.
Insurance of virtual works of art
The rise of NFTs raises the question of whether they are secure enough in the regulated and encrypted virtual space to protect them. Indeed, computing has never been entirely foolproof, and bad intentions are always possible even for digital works. The paradox of NFT is that even though the trend is accelerating, it is still not sufficiently known and developed to achieve foolproof protection. The universe still under construction can therefore leave its share of risks – but like everything in the end.
So, insuring your works, be they virtual or real, is entirely possible. Standard insurance companies already offer to insure artworks provided you have a physical safe. If this is the case with NFTs, then the insurance in question will also cover damages caused to this guy. If you doubt the involvement of non-fungible tokens in your contract, don’t hesitate to ask your insurer about it. So, to get more information on the subject and thus, not to fall from the top in case of problems.
Warning, a virtual safe will surely be the exception to the rule for this type of insurance which only covers physical goods.
Furthermore, these digital files are not insured by traditional insurance, so you have to go through specialized contracts. Some companies like it Hiscox offer offers on this topic, so find out. It is entirely possible to protect your virtual assets.
Nothing required at the moment
In fact, NFTs remain at a domain well protected by blockchains which are virtual spaces created to protect your acquisitions. Virtual safes are very effective, but it will be a question that your codes remain confidential and that you are careful on all types of sites and networks. Beware of scams, dubious links (phishing links), and change your passwords regularly. Anything can happen and of course you are not immune to anything.
To give you an example, OpenSea, one of the largest NFT marketplaces, recently suffered a bug that caused artists to lose several NFTs to sell them at ridiculous prices to strategic buyers. These “non-fungible tokens” were then sold for 99% less than they were originally worth. If the site is in any case very well protected and adapted to virtual works, the fact remains that there are numerous flaws in the IT field.. The world of the web is constantly expanding and can harm those who blindly trust it.
Insurance to provide protection and cover damage from NFTs won’t do everything, of course. But it is precisely for risks that cannot be mitigated that it can be useful. So, if you are a big collector of these images or even a creator in this field, pay attention to what may be having your back. You might thank yourself later.