Ethereum co-founder, Vitalik Buterin, has aired his opinion regarding the current craze around non-fungible tokens (NFTs).
According to Buterin, NFTs can be useful in some socially relevant ways, such as charity, rather than just being the casino for already-wealthy celebrities.
Buterin said if NFTs receive the necessary support, it could be channeled towards impacting other areas of society. He added that there is no social value in buying Elon Musk’s NFT for $1 million because it has no effect on his already accrued wealth.
Vitalik Buterin noted:
“But they could also be a missed opportunity: there is little social value in helping Elon Musk earn yet another $1 million by selling his tweet when, as far as we can tell, the money is just going to himself (and, to his credit, he eventually decided not to sell). If NFTs simply become a casino that largely benefits already-wealthy celebrities, that would be a far less interesting outcome.”
He added that the focus of people should be on the potential of non-fungible tokens rather than the personality of auctioneers, in order to preserve their social value.
Buterin further asserted that “Which NFTs people find attractive to buy, and which ones they do not, is a question of legitimacy.
“If everyone agrees that one NFT is interesting and another NFT is lame, then people will strongly prefer buying the first, because it would have both higher value for bragging rights and personal pride in holding it, and because it could be resold for more because everyone else is thinking in the same way.”
Vitalik Buterin Suggests Ways to Make NFTs Promote Social Good
To make non-fungible tokens a legitimate means of effecting social impact, Buterin suggested two possible ways.
According to Ethereum co-founder, if a decentralized autonomous organization (DAO) is set up, it could help NFTs to promote social good. He thinks the collective approval of the decentralized community could be used to sanction a number of NFTs that assure that a portion of the sales revenue would be for charity.
Secondly, he said NFTs could promote social good through social media platform integration. He is of the opinion that if NFTs are allowed to show on users’ profiles, it will give them the room to display their investments for their followers and other users.