Non-fungible token (NFT) has become a quite hot topic recently along with the concept of metaverse gradually becoming clearer and more mature. As part, or even the infrastructure of the metaverse ecosystem, NFT is actually shaping how metaverse would look like in the future. Current applications of NFTs are tightly associated with digital files such as photos, audio and videos and any of those minted files are assigned unique and non-interchangeable unit of data saved on blockchain, which automatically provide proof of ownership, therefore, once a NFT file is traded, the ownership is automatically transferred to the buyer. NFT marketplaces such as OpenSea see a dramatic growth in sale nowadays as people are tending to purchase unique NFT art pieces.

While NFT is creating unlimited possibilities for our future life, it is also facing a few big challenges, which might significantly slow down the development of metaverse. Low transaction speed is always a concern as people has to wait long time for the transaction to complete and once the transaction is completed, return or cancellation is usually not allowed which means that unlike in real life, if you are not happy with what you got, you have to either keep it or find another buyer that is interested in this NFT. Certain regulations are absent from NFT marketplaces as the entire system is designed to be decentralized, and this brings another problem onto the table: copyright. While NFT has created a unique way for authenticating digital files, it is still a question mark that whether the buyers also own the copyright of the work.