10139989MetaGuard: Safeguarding DeFi and Metaverse TransactionsClosedCollaborative R&DInnovate UKThe rise of decentralised finance (DeFi) and growing complexity of the Web3 and Metaverse have brought about new opportunities and significant security challenges. Security in crypto remains a key barrier to broader adoption. In 2023, $1.7 billion was stolen, hacked, or phished from crypto users globally, highlighting a significant obstacle and source of frustration. Unintended transaction outcomes are among the most common causes of fund loss incidents within unhosted wallets including MetaMask, TrustWallet, Phantom etc. Proactive security alerts that thwart malicious transactions are crucial in protecting users against scams, phishing, and hacks. The MetaGuard project builds upon the success of Phase 1, where we developed foundational tools to enhance the security of smart contracts and decentralised applications (DApps). These contracts and applications are pivotal to the operation of DeFi and Metaverse platforms but are vulnerable to cyber threats, including fraud, phishing, and unauthorised access. The MetaGuard project aims to further innovate in this space by developing an advanced, AI-driven security solution that proactively monitors and secures digital transactions in real-time. Our objective is to create a proof of concept that not only identifies potential risks but also integrates seamlessly with users' wallets and DApps to provide instant alerts and comprehensive safety advisories without disrupting the user experience. MetaGuard's unique approach leverages cutting-edge artificial intelligence (AI) and machine learning (ML) algorithms to offer dynamic risk assessment, semantic verification, and DApp authentication. These features ensure that every transaction is analysed for potential vulnerabilities, protecting users from evolving cyber threats that could compromise their assets and interactions within the decentralised digital economy. In Phase 2, our focus is on refining and validating the core functionality of MetaGuard through extensive beta testing, feedback from industry experts, and strategic collaborations with key players in the DeFi and blockchain sectors. We aim to launch MetaGuard as the go-to security solution for individuals and businesses operating in the Metaverse and DeFi environments. We are committed to exploring commercial opportunities that will allow MetaGuard to be widely adopted. This includes developing a scalable SaaS subscription model and forming partnerships that will facilitate the broad implementation of our security solution across various platforms. MetaGuard will represent the future of secure digital transactions in the Metaverse and DeFi. It will enhance user confidence and contribute to the sustainable growth and innovation of the decentralised financial ecosystem.