Overview of Non-Fungible Token Eco-Regulation, Traceability and Data Right Confirmation Security

As a new technology, Non-Fungible Token (NFT) has sparked a surge in asset digitization. NFT, which is unique, irreplaceable, and indivisible, can be used for investment, traceability, data storage, and so on. However, the application of NFT is not solid—risks such as wash trading and broken links abound, and data cannot be confirmed. In response to the aforementioned issues, previous authors proposed some policy solutions; however, few academic studies on NFT risks have been published. First, this paper examines the current transaction risks of the NFT ecology before proposing a regulatory approach to financial market fraud. Then we investigate two common applications of NFT—supply chain traceability and data right confirmation—and propose methods to improve security based on existing research risks. Finally, we summarize the work of this paper and provide an outlook on NFT. To the best of our knowledge, we have conducted the first exploration of NFT ecological regulation approaches, as well as studied the security risks of two major application scenarios: traceability and data right confirmation.