The dynamics of NFTs in the Metaverse

Abstract

Non-Fungible Tokens (NFTs) are an important element of the Metaverse as they support functionalities at various Metaverse layers, including the creation, trade, and ownership of digital assets. This paper focuses on the details of NFT dynamics within the Metaverse and emphasizes the mechanisms that support value creation and distribution in this area. This chapter explains the role of NFTs in decentralized ownership tracking, as well as addressing the challenges related to copyright and intellectual property. We draw parallels between traditional and virtual economies and highlight key differences and similarities. Moreover, we investigate the influence of NFTs on wealth disparity and the distribution of digital assets, and we report their potential benefits and drawbacks.