Ethereum co-founder Vitalik Buterin believes the NFT can be used to address social issues such as philanthropy and public finance, but not when the technology is still seen as “a casino that already benefits rich celebrities.”

The Ethereum White Paper author said that helping celebrities like Elon Musk does not have much social value to add another million dollars to the bank balance by selling NFTs. But he believes that when supported and coordinated, non-replaceable brands can have a serious impact on other areas of society.

In a blog post entitled “The Most Rare Resource Is Legitimacy”, Buterin said that public attention and resources are often directed at what most people think is legitimate – a term in game theory that he defines as:

“The highest ranking model. An outcome in one or another social context is legitimate if people in the social context largely accept and play a role in activating that result, and everyone does so because they expect everyone else to do the same. ”
In short, people act in a coordinated way if they understand that everyone else is doing the same thing, especially if it is beneficial to them personally. The NFT market, which accounted for half a billion dollars in recent months alone, is also under the influence of ever-changing forces of mass perception.

“Which NFTs people find attractive to buy and which are not, is a matter of legitimacy,” Buterin said.

“If everyone agrees that one NFT is interesting and the other is bad, people will strongly choose to buy the first because it will have a higher boast value and personal pride in owning it, and also because it can be resold for more. because everyone thinks the same. ”

The influence and appeal of celebrities like Elon Musk can be potentially overwhelming. The Tesla boss is credited with moving bitcoin (BTC) and the broader cryptocurrency market in many cases, both positive and negative. Buterin said Twitter boss Jack Dorsey’s interest in NFT is commendable, citing the social media chief’s decision to auction off NFT’s “first tweet” for $ 2.9 million.

But if the focus remains on these people, the likelihood that NFTs will have any real social impact will be lost, says co-founder of Ethereum:

But it can also be a missed opportunity: helping Elon Musk make another million dollars by selling the tweet does not have much social value when, as far as we can tell, the money just goes to him (and his honor, which he to finally chose not to sell). If NFTs simply became casinos used by already rich celebrities, it would be a less interesting result. ”
Buterin proposed two possible approaches that would help make NFTs more “legal” as a way to act as a funding mechanism for causes that somehow increased social benefits.

Buterin said an independent decentralized organization could be set up which, with the unanimous consent of the decentralized governing community, would “punish” any non-financial organization if part of the proceeds from the sale were guaranteed to be donated to charities.

Another way is to work with social media platforms to incorporate NFT screens into user profiles so that they can show what they have invested their money in. Buterin wrote that when combined with the first idea, this approach can “motivate users to NFTs that contribute to important social issues. “

Source: CoinTelegraph