Secure Abstraction of Fractionalization Smart Contracts for Non-Fungible Tokens

Non-fungible tokens (NFTs) have faced a downturn in interest, prompting a critical reassessment of their utility and accessibility. Fractionalization emerges as a solution, by enabling multiple parties to hold a stake in a single NFT, fractionalization lowers the barrier to entry for investors, enhancing market liquidity.

Implementing fractionalization relies on smart contracts, which govern the terms of division, and transfer of fractions of an NFT. However, the complexity of these contracts and the immutable nature of blockchain underscores the importance of security.

This thesis tackles the challenge of implementing fractionalization solutions and enhancing the security of supporting smart contracts. It thoroughly analyzes current fractionalization methods, identifies security vulnerabilities, and explores mitigation strategies to contribute to a safer and inclusive NFT ecosystem. The goal is to propose a baseline for standardizing NFT fractionalization to improve interoperability and address security concerns, laying the groundwork for a more unified and secure ecosystem.