NFTS IN THE DIGITAL AGE: CYBERSECURITY RISKS AND AI-POWERED SMART CONTRACT SOLUTION

The burgeoning realm of blockchain technology, underpinning the foundation of modern cryptographic systems, serves as a focal point for this master's thesis. Central to this exploration is the emergence of Non-Fungible Tokens (NFTs), cryptographic assets unique in their representation and utility. This research commences with an elucidation of blockchain's theoretical underpinnings, followed by a chronological delineation of NFTs, emphasizing their evolutionary trajectory and inherent value propositions within a cryptographic context. Subsequently, the study undertakes a rigorous quantitative and qualitative analysis of the current NFT market. Methodical segmentation reveals nuanced market vectors, each delineated and assessed based on its unique characteristics. Analytical scrutiny of predominant marketplaces and platforms is also presented, emphasizing their operational paradigms and influence on NFT liquidity and valuation. Drawing on empirical data, recent market trends are critically evaluated, providing a comprehensive understanding of the market's dynamic equilibrium. Pivoting to the domain of cybersecurity, the research meticulously categorizes a spectrum of risks that permeate the NFT infrastructure. Employing a taxonomy of cyber threats, the work highlights potential vulnerabilities, delineates attack vectors, and characterizes the modus operandi of potential scams targeting the NFT ecosystem. In response to the identified threats, the thesis introduces a novel security paradigm: an integration of blockchain's deterministic consensus algorithms with advanced artificial intelligence tools. The capabilities of a specific tool, sourced from the start-up Anchain.AI, are critically assessed, underscoring its potential for real-time threat detection and mitigation within the NFT domain. The research culminates with a robust evaluation of this integrated solution, employing both computational benchmarks and theoretical analysis to determine its efficacy, scalability, and potential implications. The objective remains to underscore the importance of robust security protocols and to elucidate a path forward for the sustainable growth of the NFT market, ensuring its resilience in the face of evolving cyber threats.