Is Token-based Authentication Secure?

As hackers evolve, so must the security procedures and policies implemented by MSPs. Thanks to the rising use of brute force attacks, dictionary attacks, and phishing tactics to grab user credentials, it’s becoming glaringly obvious that password authentication is not any longer enough to stay attackers cornered.

Token-based authentication, when utilized in tandem with other authentication practices, creates a 2FA barrier designed to prevent even the foremost advanced hacker in his or her tracks. Token authorization systems are regarded very secure and effective since tokens can only be obtained from the device that generates them, whether it be a key fob or a smartphone.

The security of token-based authentication comes from the cryptographic signing of the token. A token is signed using a private key, which is known only to the token issuer. Only the token issuer can generate a valid token and as such only authorized users can obtain valid tokens. Additionally, the token is encoded with a unique and unpredictable value, known as the nonce, which prevents replay attack. And also each token is valid for a specific period of time, after which it expires and new token will be issued. The Blockchain development company offers a wide range of Blockchain development services, including tokenization solutions and other custom Blockchain solutions for businesses and organizations.

But despite the various advantages related to an authentication token platform, there's always a fat chance of risk that is still. Smartphones also add potential weaknesses, even if smartphone-based tokens are exceedingly handy to use. Tokens sent as texts are riskier because they will be intercepted during transit. Like other hardware devices, smartphones also can be lost or stolen and finish up within the grasp of these with dangerous intentions.

TOKEN-BASED AUTHENTICATION BEST PRACTICES

Implementing a strong authentication strategy is critical when it involves helping your customers protect their networks from a security breach. Except for your strategy to really be effective requires strict adherence to all or any relevant best practices.

Here are a couple of key factors to stay in mind when deploying a token based authentication strategy.

  • Put the proper token into play
    While there are variety of web tokens alive, none quite match the recognition and reliability of the JSON Web Token (JWT). JWT is taken into account an open standard (RFC 7519) for transmitting sensitive information between multiple parties. The knowledge exchanged is digitally signed using an algorithm or public/private key pairing to make sure optimal security.
  • Keep it private
    A token should be treated an equivalent way user credentials are. Customers should be made aware of the value of protecting their token codes by treating them as they would a vault containing their most priceless items. This mindset is especially relevant when it involves the signing key.
  • Leverage HTTPS connections
    HTTPS connections are constructed with security protocols top of mind, leveraging encryption and security certifications designed to guard sensitive data. It’s important to use HTTPS connection vs HTTP or the other sort of connection when sending tokens, as these alternative systems face higher chances of interception from an attacker.

TOKENIZATION OF PRECIOUS METALS

Tokenization are often applied to all or any markets and every one sorts of assets, but it's especially useful within the case of the valuable metals market. As all gold bugs know, precious metals are one among the simplest stores useful, but they even have some disadvantages, mainly associated with how hard it's to move and store metals like gold, silver or platinum, especially in larger quantities.

Tokenization allows for transgressing the normal limits of the valuable metals market. It enables investors to realize exposure to a valuable like gold during a unit that's agnostic of bar and brand. Since the token may be a digital certificate of legal ownership, it are often processed or transferred instantly, but it also can be wont to withdraw actual, physical gold at one among the various global locations, whenever the owner decides so.

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Main Advantages of Tokenized Precious Metals

For the valuable metals industry at large, tokenization may be a thanks to allow the market to expand by disrupting it in order that it becomes more inclusive. From the purpose of view of an investor, tokenization are often considered an optimal sort of exposure to precious metals, since it provides many advantages over both physical metals and precious metals ETFs.

  • Security
    For an extended time, storing precious metals during a secure, remote vault was considered the safest way of investing in metals. Tokenization adds an additional layer of protection to the present time-tested method of storing precious metals. while the metal itself remains being held during a vault, its certificate of ownership is secured with state-of-the-art cryptographic algorithms.
  • Flexibility
    Tokenization enables the investors to require full control over their assets. Unlike physical gold or silver or platinum, tokenized assets are often bought or sold 24/7, and therefore the trade order is usually executed immediately.
  • Reliability
    Cryptographic algorithms wont to secure tokenized assets are impossible to be broken. Unlike paper certificates, they can't be forged or tampered with, allowing you to place full confidence in your investment.

The benefits of tokenized precious metals

  • Digital Ownership
    Tokens are often redeemed for the underlying physical valuable at any time.
  • Highly Accessible
    1 gram (1 token) is divisible into 18 decimals, enabling people to get fractions of a gram.
  • Cheap and fast settlements
    Export precious metals without incurring exorbitant expenses or lengthy delivery processes.
  • New markets
    Individuals all around the world can buy precious metals from you through a variety of platforms and distribution channels.

Why are precious metals the answer?

Now quite ever, investors are seeing precious metals as a secure and stable thanks to hedge their portfolio against inflation, and protect their investment from political and economic instability. Why? It's simple; because precious metals perform.

So, why aren't there more individuals investing in actual precious metals?

  • High-priced
    Physical metals have a high entrance cost, making them unavailable to the general public.
  • Inconvenient
    Physical metals are logistically difficult (not to say expensive) to move and store.
  • Vulnerable
    Physical metals are susceptible to theft - particularly when stored personally by the investor.

Physical metals…

  • Are inconvenient to move
  • Are expensive to store
  • Are susceptible to theft
  • Have a high-cost barrier to entry

Precious Metals Tokens…

  • Don't require transport
  • Are stored smartly and securely online
  • Are protected by blockchain technology
  • Are a low-cost thanks to invest?

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Tokenization of precious metals - future prospects

Of course, many commodities enjoy tokenization, but it's perhaps the tokenization of these with the very best value that has the foremost advantages. Precious metals are one among the simplest assets for shielding capital from inflation and market fluctuations. Trading them also becomes easier because of tokenization. Therefore, additionally to the prevailing tokens secured by gold or silver, those using other precious metals should soon appear. What is going to be next? Platinum? Palladium? The chances are endless..

Next Article

Tokenization For Real Estate Assets

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