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Cyberwarfare is emerging as the next evolution in modern warfare between nation states. The use of cyber espionage and disruption of government agencies, critical infrastructure operators and private sector companies is driving the market for sophisticated cyberweapons. Complex malware campaigns, advanced persistent threats and the commoditization of a legitimate exploits market underpin next-generation cyber warfare technologies. This report looks at the current state actors and their cyber activities, the development of offensive cybersecurity and cyber weapons, and how cyber warfare is affecting national security.