The “dark side” of NFTs

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As you may know, NFTs are linked to a digital certificate via the blockchain. What you may not know is that the encryption process to ensure the security of the network consumes a lot of energy and carbon emissions, which creates environmental impacts on the planet.

Therefore, NFTs are still not well received due to global concerns about the ecological footprint in the world. Now there are initiatives by some blockchain companies that aim to reduce energy consumption for the creation of NFTs to reverse this negative situation.

In addition to environmental issues, the digital security and legality issues behind NFTs should also be highlighted.

Nike recently experienced a situation involving trademark legal factors pakistan phone number list against a company that decided to make unauthorized use by turning its shoes into NFTs .
Recently, the OpenSea marketplace suffered a system bug that allowed a hacker to purchase NFTs well below the market price. Hackers have already executed phishing attacks, causing OpenSea platform users to sign autonomous contracts that allowed hackers to transfer the NFTs to their own wallets.
We are still dealing with emerging technologies and do not have a robust enough technological, security and legal system to deal with some situations. These are important factors to consider when adopting NFTs in your brand strategy.