Non-fungible tokens are held indirectly responsible for up surging environmental deterioration. The climate havoc is mounting due to global warming. But one could think about how this digital technology is causing environmental instability? Probably the answer resides in the production means of NFTs. NFTs means of production are generating a significant shift in our climate and environment.
Our environment is rapidly changing, possibly due to human activities. This intervention has upset the balance preserved within the ecosystem for billions of years. The fast-evolving technology has severe implications despite significant benefits. One of these technologies is NFTs, which indirectly impact the environment.
What are NFTs?
The non-fungible tokens are digital assets that are popular everywhere. Most people speculate that NFTs will sustain forever due to their hype among people. In NFTs, people have digital assets in art, music, video, etc. Using cryptocurrency, one can buy and sell these assets. In 2021, it will collect a net worth of $ 41 billion. Moreover, NFTs have unique identifying codes for security purposes.
NFTs and cryptocurrency are made using similar programming. However, they are different in their work. People can trade Cryptocurrencies as they are fungible; for instance, one bitcoin is equal to another. However, NFTs are non-fungible. You cannot exchange one NFT with another one. Like you cannot buy one painting by selling you.
NFTs and their impact on the environment
NFTs are digital assets that are traded in cryptocurrencies. Moreover, people produce it in paintings, music, art, videos, etc. and sell them. However, it has some significant implications for the environment. Some couldn’t comprehend that how these are interlinked. This relation is explained if one understands its manufacturing process. NFTs are not harmful to the environment; their preparation method has cast severe effects.
NFTs require excessive energy consumption for their preparation. According to statistics, one NFT consumes power equivalent to nine days of energy consumption by an American household. They often require a proof-of-work method for their minting, which is an energy-consuming process. In proof-of-work methodology, a user must solve a complex problem using excessive energy.
All these processes result in carbon dioxide emission that is rising Earth’s temperature. Global warming is causing environmental degradation by melting glaciers. Moreover, it is causing the extinction of various species, forest fire, deforestation, and any consequences. Listing an NFTs is not an energy-intensive process; however, minting requires excessive energy and electricity supply.
How to reduce the high energy consumption?
NFTs are not degrading the ecosystem. However, its manufacturing and minting process is an intensive procedure. Miners compete with each other to get NFTs. They solve complex puzzles requiring a power supply that is equivalent to an American household’s nine days of electricity consumption.
In order to lower this heavy load, manufacturers are planning to introduce the option of proof-of-stake. In this process, one can generate NFTs without damaging the environment. Moreover, it is advisable that miners using proof-of-work must shift their electricity source to renewable energy sources such as solar plates. These eco-friendly means of energy generation are the saviour of our ecosystem.
Moreover, one can invest in various experiments that contribute to save the environment. For instance, you can support carbon pump and storage experimental technology. Moreover, shift to platforms that use proof-of-stake to get their NFTs.
NFTs are indirectly affecting our environment. The minting method requires high power consumption. As a result, it releases carbon dioxide into the atmosphere and causes severe damage. Hence, people should adopt alternative practices such as proof-of-stake for minting NFTs. Moreover, invest in experiments that aim to preserve our ecosystem’s vitality and sustainability.