The Growing Concern for Digital Asset Safety
In the wild west of Web3, where hackers seem to have the upper hand, it’s no surprise that users are getting jittery about the safety of their digital treasures. With over $320 million reportedly snatched away in the first quarter of 2023 alone, protecting NFTs has shot right to the top of everyone’s to-do list. After all, no one wants to be that friend who insists they store their priceless virtual art in a cardboard box labeled ‘do not touch.’
NFT Warranties: A Breath of Fresh Air
Enter the hero of our story: a new warranty service that offers coverage for NFTs against smart contract hacks, masterminded by Web3 payment provider Wert in collaboration with insurtech whizzes Avata. This new feature promises to back up users with up to a whopping 90% of their asset’s value if things go south. It’s like insuring your favorite baseball card, but instead, it’s a pixelated panda with a party hat!
What’s the Catch? Spoiler: It’s Pretty Simple
While optimistic NFT enthusiasts can breathe a sigh of relief, they may also wonder what they’ll need to cough up for this peace of mind. The coverage will cost a mere 6% of the asset’s price at checkout. That’s right, for the price of a fancy coffee, your digital artwork gets the security blanket it desperately needs when added to your cart!
Building Trust in the NFT Marketplace
According to George Basiladze, co-founder and CEO of Wert, a warranty like this is a solid step toward bridging the “trust” gap in the Web3 realm. He says that the added security will coax even the most conservative non-native crypto users into dipping their toes into the waters of digital collecting.
“Overall, any consumer looking to get into the NFT space wants to protect their money invested and by offering them that sense of security, they are able to engage in Web3 on a deeper level with reduced risk.”
Opening the Gates for Serious Collectors
Basiladze points out that experienced investors, particularly those splurging on high-value NFTs, often experience sleepless nights worrying more about security than an average collector. Now with warranties, they can relax and ‘collage’ their digital walls without the constant fear of theft. Essentially, it’s about making the NFT landscape as enticing as a candy store for professional collectors.
The Road Ahead: Skyrocketing NFT Transactions
The hype around NFTs isn’t going anywhere. With projections for NFT-related transactions expected to balloon from 24 million in 2022 to almost 40 million by 2027, it seems we may be witnessing the dawn of a shiny new age of digital collecting. And warranties could very well be the golden ticket that fans the flames of mass adoption.
