Risks of Non-Fungible Token Adoptions
and Risk Mitigation Strategies
Non-fungible tokens (NFTs) have made big waves in the last two years in particular
and have caused headlines with ever higher individual transaction sums. Among other
things, this boom has led to many hobby artists digitizing their art and selling it as
NFTs. At the same time, many companies also became aware of the NFT phenomenon
and exploded opportunities to develop existing or new products based on this innovative
technology. In the shadow of the success of NFTs lies a large number of projects that
have failed badly and are rarely mentioned.
In this thesis, the underlying technologies of blockchain and smart contracts are explored.
Based on this, different types of non-fungible tokens are analyzed and explained
using examples. This study then uses design science research methodology to explore
the problem of prevalent risks in the development of NFTs. Based on this analysis,
a prototype score-based questionnaire will be developed as a solution to mitigate the
existing risks. This solution has been built on MS Excel, ensuring that it can be used
easily and by anyone.
The developed questionnaire was then presented to subject matter experts and evaluated
using a standardized questionnaire. This evaluation showed that the prototype is
very well suited as an initial analysis tool and sufficiently covers the most important
risks. Two of the three subject matter experts agreed that the tool can be used well in
early stage, but would bring even more value as a sophisticated tool and recommend to
further expand the risks covered and to include more questions per risk.
Selami, Driton, 2022
Art der Arbeit Master Thesis
Betreuende Dozierende Moriggl, Pascal
Studiengang: Business Information Systems (Master)