Unveiling Security Vulnerabilities in NFTs: A Comprehensive Risk Assessment

Abstract

The biggest invention of Non-Fungible Tokens System (NFTs), that defines its role digitally using the self-generated concept of proof of ownership, which comes as a result of continues progress and advancement in Blockchain Technology This study aims to provide a comprehensive understanding of NFTs, their foundational technology, and the platforms enabling their trade. It highlights the key challenges of implementing NFT technology, focusing on issues related to ownership, governance, security, privacy, and environmental concerns. The research explores the inherent risks in the evolving NFT ecosystem, offering insights into the nature and scale of these threats. Additionally, it proposes a set of actionable solutions for participants and stakeholders to mitigate these risks. By categorizing core hazards within a simplified taxonomy, this paper identifies key vulnerabilities and outlines strategies for addressing them to enhance the safety and sustainability of the NFT space.