Enhancing Digital Asset Management and User Engagement through Blockchain-Based NFTS

Abstract

Blockchain technology affords the secure and effective means for addressing the spiking cases of financial frauds and inefficiencies. Using the immutable and distributed nature, blockchain provides robust transaction security. However, NFTs have significant limitations in the financial use scenario due to the non-fungible characteristics that discourage the consistent valuation and exchangeability. To overcome these challenges, the proposed system integrates NFTs into banking operations and enhances their utility in secure financial transactions. The system uses the Proof of Stake algorithm to record transactions on the blockchain, offering energy efficiency and scalability compared to traditional Proof of Work. This method ensures secure and reliable transaction processes while addressing the high demands of financial systems. The framework thereby extends the utility of NFTs beyond digital collectibles, redefining the concept of asset management in banking and creating innovative opportunities for financial applications. The results show that the incorporation of NFTs into blockchain technology improves transaction security and efficiency, thus establishing the potential for financial innovation. This approach not only minimizes risks associated with traditional systems but also introduces a transformational model for managing digital assets in banking. By utilizing NFTs in secure blockchain frameworks, the system opens avenues for scalable and innovative financial practices.