Ethereum co-creator Vitalik Buterin believes NFTs can be applied to socially relevant causes such as charities and funding public goods, but not while the technology is still viewed as a “casino that largely benefits already-wealthy celebrities.”
The author of the Ethereum whitepaper said there was little social value in helping celebrities like Elon Musk add another $1 million to their bank balance by selling NFTs. But he does believe that with support and coordination, non-fungible tokens could have a significant impact on other areas of society.
In a blog post titled “The Most Important Scarce Resource is Legitimacy,” Buterin said public attention and resources are often allocated to whatever most people perceive to have legitimacy — a game theory term which he defines as:
“A pattern of higher-order acceptance. An outcome in some social context is legitimate if the people in that social context broadly accept and play their part in enacting that outcome, and each individual person does so because they expect everyone else to do the same.”
Blockchain technology, along with the adoption of cryptocurrencies, is gaining momentum. The enterprise blockchain market is expected to reach $21 billion over the next five years. Just eleven years on, and both sectors have matured greatly, resulting in well-established organizations taking the technology more seriously as they tackle challenges that come with implementing blockchain and the use of digital assets.
Unsurprisingly, professional services giants are among those taking a larger role in tackling new market challenges. The Big Four firms and Fortune 500 companies are working with a number of blockchain and crypto companies on ways to combat regulatory uncertainty, interoperability challenges, consensus models and development of the technology. Henri Arslanian, PwC’s global crypto leader, told Cointelegraph that the Big Four firms specifically have a very important role to play in the advancement of the cryptocurrency ecosystem, saying:
“Although Bitcoin was designed with a trustless ideology, the reality is that the industry still requires trusted entities to catalyze the development of the ecosystem.”
Canadian-based Blockchain tech company Blockstream announced the launch of a security token backed by the company's mining production on March 29.
It offers an alternative to investing in Bitcoin mining stocks, with the company providing non-US qualified investors exposure to Bitcoin mining through the Blockstream Mining Note security token. BMN represents 2,000 terahash per second of hashrate from Blockstream's mining facilities.
The Bitcoin mined for BMN will be held in cold storage for three years, and will be distributed to the final token holders at the end of that time frame. Blockstream plans to begin BMN mining operations by July 9, with the following tranches expected to be released in the third quarter of this year.
This Daily Dose was brought to you by Cointelegraph.