Vitalik Buterin: Fund “Valuable” Open Source Projects, Not Just “Public Goods”

Ethereum co-founder Vitalik Buterin called for a shift in perspective regarding how essential digital infrastructure projects are funded and supported.

In a recent article outlining his thoughts, he argues the focus should move beyond traditional “public goods” theory towards a framework centered on “open-source” development and contribution. Buterin suggests the primary goal isn’t merely funding projects labeled ‘noble,’ but rather building and sharing the most valuable open innovations possible.

Why Buterin Questions the ‘Public Goods’ Label for Digital Infra

Buterin acknowledges that modern digital systems heavily rely on shared resources – often termed public goods. This economic concept typically describes outputs valuable to many, where individual contributions don’t necessarily yield direct personal returns.

While recognizing the necessity of such goods, especially in decentralized ecosystems like blockchain, Buterin contends the traditional “public goods” notion doesn’t always apply efficiently or accurately in these rapidly evolving digital spaces.

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Buterin: ‘Open Source’ a More Fitting Framework?

Instead of relying solely on the public goods frame, Buterin proposes “open source” as a more appropriate and useful lens for many crucial digital resources. He points out that key examples within the crypto world – such as core blockchain research, widely used software libraries, and the development of essential software like Ethereum clients – are fundamentally open-source endeavors.

While the concepts overlap, Buterin notes clear definitions exist. Groups like the Free Software Foundation (FSF) and the Open Source Initiative (OSI) have long defined and promoted open source based on its ability to provide broad, diffuse public benefits through shared knowledge, code, and standards.

Open Source’s Edge: Global Scalability and Accessibility

The advantages of open-source models extend beyond just software development itself, Buterin argues. He suggests open source plays a vital role in addressing global challenges, citing examples ranging from environmental monitoring technology to building decentralized communication or energy infrastructure.

Buterin asserts that open-source models often provide solutions that can be scaled effectively worldwide. While providing localized physical infrastructure remains important, open methodologies inherently allow for easier global deployment and adaptation of solutions. He concludes this open model is crucial for the continued progress and accessibility of shared global digital infrastructure.

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As a point of contrast, he notes that projects like national defense, if inherently unable to be fully open-sourced due to security needs, might not truly fit the definition of a global public good, further highlighting the distinction he draws.