After NFTs experienced their big boom, the market was suddenly flooded by an abundance of overpriced digital art pieces.
This brought about a pricing problem; Vitalik Buterin, as the creator of the first blockchain for NFTs, has now brought a to the table. The idea also came about with a bit of philosophical touch.
As a fan of World of Warcraft, Vitalik Buterin compared NFTs to in-game items, which is not too far from truth. At some point, the developers of WoW introduced unique “soulbound” items. This means that, should a player pick one up or equip one, they are prevented from trading it. A solution brought about due to the overwhelming tendency of players selling their items.
The creator of Ethereum found some similarities with POAP, or the “proof of attendance protocol.” In this case, your purchased NFT gets “a badge,” whether or not you personally attended an event, auction, or an NFT drop. This mechanic shifts the core value away from the item itself, to the creator or collector, which is not unlike physical art pieces in the real world.
On the other hand, in the real world, it’s usually the mixture of a creator and an art that creates its value. Yes, we know Leonardo da Vinci as a great artist, however, the Mona Lisa is known worldwide, in part, because of the series of events that transpired around the art.
Check out Buterin’s full blog post here.