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address. Thus, we believe that using a multi-signature contract can partly solve this issue since each binding must be confirmed by more than one participant. Information Disclosure. Information leakage occurs when information is ex- posed to unauthorized users, which violates confidentiality [95]. In the NFT system, the state information and the instruction code in the smart contracts are entirely transparent, and any state and its changes are publicly accessible by any observer. Even if the user only puts the NFT hash into the blockchain, the malicious attackers can easily exploit the linkability of the hash and transac- tion. Thus, we recommend the NFT developer to use privacy-preserving smart contracts [93][94] instead of plain smart contracts to protect the user’s privacy. Table 1: Potential Security Issues and Corresponding Solutions of NFTs. STRIDE Spoofing (Authenticity) Tampering (Integrity) Repudiation (Non- repudiability) Information disclosure (Confidentiality) Denial of service (Availability) Elevation of privilege (Authorization) Security Issues • The hash data may bind with an attacker’s address. • A poorly designed smart contract may make NFTs lose such properties. Solutions • A formal verification on the smart contract. • Using the cold wallet to pre- vent the private key leakage. • Sending both the origi- nal data and hash data to the NFT buyer when trading NFTs. • Using a multi-signature con- tract partly. • Using privacy-preserving smart contracts instead of smart contracts to protect the user’s privacy. • Using the hybrid blockchain architecture with weak consen- sus algorithm. • A formal verification on the smart contracts. • An attacker may exploit au- thentication vulnerabilities • An attacker may steal a user’s private key. • The data stored outside the blockchain may be manipu- lated. • An attacker can easily ex- ploit the hash and transaction to link a particular NFT buyer or seller. • The NFT data may be- come unavailable if the asset is stored outside the blockchain. Denial of Service (DoS). DoS attack [96] is a type of network attack in which a malicious attacker aims to render a server unavailable to its intended users by interrupting the normal functions. DoS violates the availability and breaks down the NFT service, which can indeed be used by unauthorized users. Fortunately, the blockchain guarantees the high availability of user’s operations. 10PDF Image | NFTs Non-Fungible Tokens Focus
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