The Internet has accelerated the development of globalization. It not only forms a parallel communication mode across states, but also changes the legal system constructed on the basis of national sovereignty. Governments are doing their best efforts to maintain the cyber space owing to the threat for national securities and interests are created from the cyber space worldwide. That leads to controversies of state sovereignty from different aspects. Although it is difficult to explore the state sovereignty in cyber space, but ineluctable, the controversies of state sovereignty have already existed among nations in the cyberspace. Whether to defense from a network attack or to limit the network information transmission, these must be through the state sovereignty to justify the actions. To resolve the international conflicts in cyberspace, international arbitration has to be involved thus a new implication of state sovereignty has to be explored, so that we can have a nationality identification mechanism as well as the boundaries of nations for the bases of arbitration in cyberspace.