Design and Implementation of a Secure NFT Marketplace Using Blockchain and Smart Contracts

Abstract

"Non-Fungible Tokens" (NFTs) have revolutionized digital ownership by enabling verifiable, unique assets on the blockchain. In this paper, we present an advanced, secure, and scalable "NFT marketplace" built on Ethereum, leveraging Zero-Knowledge Proofs (ZKPs), multi-signature wallets, and AI-driven threat detection to enhance security and decentralization. We implement ERC-721 and ERC-1155 standards, integrate Layer 2 solutions (Polygon zkEVM, Arbitrum) for cost efficiency, and introduce decentralized identity (DID) verification to prevent fraud. Our smart contracts were thoroughly tested using Slither, MythX, and manual audits, while the frontend employs React.js with WalletConnect v2 for cross-wallet compatibility. We also propose a novel royalty enforcement mechanism using ERC2981 with automated payouts via Chainlink Automation. Performance benchmarks demonstrate sub-second transaction finality on Layer 2 and gas cost reductions of up to 90% compared to traditional Ethereum mainnet deployments.