Vitalik Buterin, Ethereum’s co-author, believes that NFT can be used for important social purposes such as philanthropy and government funding, but not when the technology is still seen as “a casino that is greatly benefited by wealthy celebrities.”
An Ethereum article writer said helping celebs like Elon Musk has little social value to add another million dollars to his bank account by selling NFTs. But he believes that when supported and coordinated, non-innate symbols can have a major impact on other areas of society.
In a blog titled “The Most Important Rare Resource Is Legitimacy,” Buterin said that audience interest and resources are often devoted to what most people consider legitimate – a term in game theory that he defines as:
“Higher-rank acceptance model. The outcome in some social contexts is legitimate if people in a social context usually accept and play their part in accepting this outcome, and everyone does so because it expects others to do the same.”
In short, people act in a coordinated manner if they understand that others will do the same, and especially if it is beneficial to them. The NFT market, which has only totaled half a billion dollars in recent months alone, is also being influenced by the ever-changing forces of public opinion.
“Which NFTs people find attractive to buy and which ones aren’t is a legal issue,” Buterin said.
“If everyone agrees that one NFT is interesting and the other is ineffective, then people will strongly choose to buy the former because it will have a higher value for both pride and personal dignity, and because it can sell at a price. New for more because everyone thinks the same thing.”
The impact and attraction that celebrities like Elon Musk claim can be enormous. The Tesla chief has been credited with moving Bitcoin (BTC) and the wider cryptocurrency market multiple times, positive and negative. Buterin said Twitter chief Jack Dorsey’s interest in NFT was commendable, referring to the social media CEO’s decision to auction off his “first tweet” about NFT for $ 2.9 million to charity.
But if the focus remains on these people, the NFT potential for real social impact may be lost, Ethereum co-founder says:
“ But it could also be a missed opportunity: There’s little public benefit in helping Elon Musk make another million dollars by selling his tweet, whereas, as far as we know, the money just goes to him (and his honor, as he ultimately decided not to sell.) NFT Casino is mainly distributing wealthy celebrities, so the result is less interesting. ”
Buterin suggested two possible ways to make NTP more “legitimate” as a way to act as a financing mechanism for purposes that contribute in some way to the public good.
Buterin said that an independent, decentralized organization could be created that could, with the unanimous consent of its decentralized governing community, “delegate” some non-financial organizations if a portion of the sales proceeds were donated to charity.
Another way is to work with social media platforms to integrate NFT screens into user profiles so they can show what they have invested their money in. Buterin writes that when combined with the first idea, this approach can “confuse users. NFTs that contribute to important social affairs.”