Research Article

A Machine Learning Augmented Cooperative-Game Framework for Blockchain and Non-Fungible Token-Based Artwork Trading with Zero-Knowledge Proofs

DOI:

10.3791/68889

March 13th, 2026

In This Article

Summary

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This study enhances NFT-based digital asset trading in smart city environments by integrating ML into a CoGTT framework. Implemented using smart contracts on a public blockchain and supported by zero-knowledge proofs, the framework improves fairness, adaptability, and transparency, achieving an 84% trade completion rate while accounting for execution costs inherent to decentralized systems.

Abstract

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In the context of smart cities, Non-Fungible Tokens (NFTs) are transforming digital art markets by enabling secure, decentralized transactions. As NFT trading grows, incorporating intelligence and adaptability becomes crucial—making Machine Learning (ML) integration essential. However, existing models, particularly Cooperative Game Theoretic Trading (CoGTT) frameworks, underutilize ML across all trading phases. Key gaps include limited real-time adaptability, suboptimal negotiation strategies, and inadequate buyer–seller matchmaking. This research addresses these gaps by integrating ML into a three-phase CoGTT frameworkML-augmented Naive Trading, Min–Max Price Negotiation, and Equilibrium-Based Tradingto enhance decision-making and pricing. The methodology applies ML algorithms such as decision trees, clustering, and reinforcement learning (Q-learning) within a public blockchain–based simulation environment using smart contracts. The simulation uses a customized dataset reflecting both market dynamics and artist credibility. The dataset is synthetically generated to emulate an NFT marketplace while maintaining controlled experimental conditions, which may limit direct applicability to volatile real-world markets. Zero-knowledge proofs (ZKPs) are employed to preserve privacy. ZKPs are employed to preserve privacy. A comparative analysis of ML models for NFT price estimation and strategic bidding demonstrates the effectiveness of combining predictive algorithms with reinforcement learning. Linear Regression and Random Forest models both accurately estimate NFT prices, with Random Forest achieving higher real-time prediction accuracy (R2 = 0.9920). K-Means clustering effectively segments market participants to support targeted negotiation, achieving a silhouette score of 0.8178. Integrating Q-learning with Random Forest enables dynamic bidding strategies that minimize the gap between recommended and actual prices. The discrete action set (decrease, stay, increase) supports interpretable, real-time bid adjustments. These findings highlight the potential for ML-driven NFT trading systems to support scalable, privacy-compliant digital marketplaces in smart cities, aligning trading behavior with market demands through automated, data-driven processes.

Introduction

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The convergence of blockchain technology and Non-Fungible Tokens (NFTs) has introduced a transformative digital asset ownership and trading model, particularly within smart cities. In this environment, a Digital Artwork Trading Framework enables artists to monetize their creations and offers collectors verifiable ownership through decentralized infrastructure. This aligns well with smart city objectives such as transparency, traceability, and automation. Several factors, such as high transaction fees, limited interoperability, and inadequate copyright enforcement, hinder the adoption and scalability of these systems.

A growing body of found....

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Protocol

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The framework for blockchain-based NFT artwork trading is structured as a multi-layered protocol that integrates smart contracts, privacy-preserving mechanisms, game-theoretic modeling, machine learning algorithms, reinforcement learning, and gas-cost evaluation within a unified architecture.

The process begins with the development of smart contracts defining core functions such as participant registration, asset listing, order submission, and transaction execution. These contracts enable user onboarding, asset registration, and secure order handling. To assess correctness and efficiency, contract logic was tested, and execution costs were ....

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Results

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The proposed blockchain-based approach for digital artwork trading leverages ZKPs. Each trading method is encapsulated in a smart contract, with essential functionalities—such as artwork creator registration, user registration, and trading mechanisms—defined as dedicated contract functions. The blockchain platform’s environment parameters used in the simulations are outlined in Table 1.

To maintain consistency, all trading methods adhere to standardized public blockchain param.......

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Discussion

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This research proposes a machine learning-augmented cooperative game theoretic trading (CoGTT) framework for NFT-based digital art markets, aimed at improving pricing accuracy, strategic negotiation, and decision-making efficiency. The approach integrates supervised, unsupervised, and reinforcement learning models—such as Decision Trees, K-Means, and Q-learning—on a smart contract–enabled blockchain platform to enable decentralized, transparent, and adaptive trading. A three-phase structure is introduce.......

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Disclosures

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We, the authors, declare that there are no conflicts of interest—financial, personal, or otherwise—that could have influenced the work reported in this manuscript. An AI language model was used only for language polishing, grammar correction, and improvement of clarity and academic tone in selected sections of the manuscript. The tool was not used for generating scientific ideas, formulating hypotheses, designing the methodology, conducting experiments, analyzing results, or drawing conclusions.

Acknowledgements

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The authors would like to express their sincere gratitude to Dr. K Hemant Kumar Reddy for his valuable guidance and insightful suggestions throughout this research. We also appreciate the constructive feedback from friends and colleagues, which greatly helped in refining the quality and clarity of this paper.

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Materials

List of materials used in this article
NameCompanyCatalog NumberComments
Hardhat (Blockchain Development Framework)Hardhatv2.19.1https://hardhat.org
MetaMask (Wallet Extension)MetaMask v11.10.0https://metamask.io
Next.jsNext.jsv14.1.0https://nextjs.org
Node.jsNode.jsv20.11.1https://nodejs.org
NVIDIA RTX 3060NVIDIAhttps://www.nvidia.com/Intel Core i7-12700H
PinataPinata.cloudv2.1.0https://www.pinata.cloud
Pinning policyPinata.cloudhttps://docs.pinata.cloud
ReactReactv18.2.0https://react.dev
RemixRemixv0.31.0https://remix.ethereum.org
Solidity (Compiler Language)Solidity v0.8.20https://soliditylang.org
Ubuntu Ubuntu  22.04 LTShttps://ubuntu.com

References

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  1. Blockchain technology, bitcoin, and Ethereum: a brief overview. Vujičić, D., Jagodić, D., Ranđić, S. 2018 17th International Symposium INFOTEH-JAHORINA (INFOTEH), Sarajevo, Bosnia and Herzegovina, , (2018).
  2. Kumar, C. S., Singh, A. P., Reddy, K. H. K. Utilization of decentralized finance (DeFi) and distributed ledger technology (DLT) in banking operations. 2024 International Conference on Intelligent Computing and Sustainable Innovations in Technology (IC-SIT), , (2024).
  3. Ante, L.

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Tags

Machine LearningCooperative Game TheoryNFT TradingZero Knowledge ProofsBlockchain ArtworkSmart ContractsPrice NegotiationReinforcement LearningRandom ForestK Means Clustering

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