Privacy Risks in Metaverse and NFTs Ecosystems

Abstract

The convergence of Non-Fungible Tokens (NFTs) and the metaverse is reshaping the digital landscape by introducing novel models of ownership, identity, and interaction. NFTs enable verifiable digital scarcity and authenticity, while the metaverse offers immersive, persistent, and socially rich environments. Yet this integration raises significant privacy challenges, as vast amounts of personal, behavioral, and biometric data are continuously collected, processed, and stored. In addition, blockchain interoperability across platforms and the widespread use of avatars and digital identities create new vulnerabilities that extend beyond those found in traditional digital ecosystems. This paper examines the privacy implications of NFTs and the metaverse by mapping key threats, evaluating privacy-preserving technologies, and discussing regulatory, ethical, and societal perspectives. Moreover, by analyzing and synthesizing recent research, it identifies gaps in current methodological frameworks and proposes directions for future research and innovation. It argues that privacy should not be regarded as a barrier to innovation, but rather as a catalyst for building trust and enabling sustainable convergence between metaverse and NFT ecosystems.