Nifty Gateway is a custodial platform, which means that NFTs on our platform are stored in a secured Nifty Gateway Omnibus wallet and powered by Gemini’s state-of-the-art custody technology.
Being a custodial system means that we can offer a much simpler, easier, and significantly cheaper collecting experience for collectors. As the oldest and most trusted third party operator in the NFT space, we take extraordinary steps to ensure our platform is fully secure and trustworthy.
What is the Omnibus Wallet?
This Omnibus wallet is a master holding account used for the purpose of transferring NFTs into Nifty Gateway and moving them within our platform. The custodial nature of this system allows for movement (purchase, sell, gift) without having to process a transaction (and incur gas fees) on the blockchain.
Running on a custodial system does not mean we don’t value decentralization and its benefits. The NFTs in our wallet are minted on the blockchain, and easily withdrawn elsewhere, at any point.
How Secure is the Omnibus Wallet/Your NFTs?
Nifty Gateway is owned by Gemini, and we enjoy the many benefits of Gemini’s industry-leading security infrastructure and team. Gemini is a New York Trust company that undergoes regular bank exams and is subject to the cyber security regulations promulgated by the New York Department of Financial Services.
Gemini is the world’s first cryptocurrency exchange and custodian to complete a SOC 1 Type 2 exam, SOC 2 Type 2 exam, and earn an ISO 27001 certification.
The NFTs on Nifty Gateway are stored using Gemini’s custody technology, which uses hardware security modules (“HSMs”) that have achieved a FIPS 140-2 Level 3 rating or higher. Like Gemini, Nifty Gateway follows the principle of least-privilege by applying tiered, role-based access-controls to our production environment. Administrative access requires multi-factor authentication and must be accessed from Gemini issued hardware devices.
Some claim that a custodial system like ours is a target for brute force hackers, and it is safer to spread assets across several wallets. The reality is that brute forcing a key is as impossible as guessing a singular atom out of all the atoms in the universe.
The fact is that the durability in our HSMs and Gemini security infrastructure is better than the security on any personal hardware available to the general public. So even if you don’t necessarily own your own wallet on Nifty Gateway, the assets are still yours, and they are surely safer.
Will Nifty Gateway ever freeze or confiscate my NFTs?
NFTs purchased on Nifty Gateway, or stored in Nifty Gateway custody are fully yours.
So long as the NFT has been fully paid for and there is no evidence of illegal activity, Nifty Gateway will never freeze or confiscate your NFTs. Should a collector not pay, or participate in illegal activity, those issues will be addressed on a case by case basis. Individual NFTs may be placed on a hold until the issue is resolved, but other NFTs in your custody account that you own will not be frozen or held.
And thanks to the custodial nature of Nifty Gateway, should you lose access to your account - lost password, etc. we can actually help you regain access, and save the contents of it!
The custodial system is not only better when it comes to security. Additional benefits include:
- Payment flexibility - you can use an assortment of methods to pay for an NFT, including debit card, credit card, Gemini Balance, prepaid ETH.
- No gas payments or signing transactions - since all internal transactions are performed off-chain within our custodial system, there are no additional gas fees or complicated transactions to sign off on.
- Account recovery - as mentioned above, if you lose access to your account, we can help you regain access. Further, in the unfortunate event an account owner becomes deceased, we would be able to transfer the funds to the legal beneficiary.
- Avoid scams - Collections on our page are either curated or verified by our team, so you don’t have to worry about buying a scam project.
We believe that every collector should consider the most cost-effective method of collecting, and we believe our custodial system is just that. Our role as a trusted custodian helps make NFT collecting simpler, cheaper and more accessible.