Do Non-Fungible Tokens (NFTs) Harm the Environment?
You may have heard about non-fungible tokens (NFTs) and how they affect the environment. Although NFTs themselves do not cause any environmental impact, the effects on our climate are related to how an NFT is produced.
The way NFT is made is extremely energy-intensive. Most NFTs are minted using a proof-of-work operating system, which consumes much power. Any energy-intensive process, crypto-related or otherwise, can add to the atmosphere’s carbon dioxide emissions and further accelerate climate change. However, there are more eco-friendly ways to mint non-fungible tokens (NFT), particularly using a proof-of-stack method.
You don’t have to use much energy to make an NFT mint. Keep reading to understand how NFT production consumes energy and learn the options for acquiring NFTs without harming the environment.
How NFTs Impact the Environment
NFTs themselves do not affect the environment, but how they are created can have significant environmental consequences. Let’s look at how proof-of-work is created using NFTs to understand how their production uses energy.
NFT is listed on a digital marketplace: Typically, before an NFT mint, it is listed on an NFT marketplace. Although listing an NFT is not energy-intensive, the location of the NFT list usually determines how much energy is required for the minting process. Choosing an NFT marketplace, like BPX, which uses proof-of-work, means that the minting process will be energy-intensive, at least for now.
NFT Purchases: An NFT purchase is often the catalyst for NFT minting. Using work evidence, NFTs are “mined” by cryptocurrency miners who control various computing resources. The mining process is energy-intensive, with special computing hardware using a lot of electricity. Miners quickly ran to solve complex math problems, thus gaining the right to mint NFT.
NFT is saved or transferred: Once the NFT purchase is complete, you can save the NFT or transfer it to another person. If you transfer NFT to another NFT marketplace that uses proof of work, the same energy-intensive process used to mint NFT is repeated for transfer. Just saving an NFT does not consume energy.
You may be wondering just how the mining process consumes energy. Only miners with the most computing ability can solve complex math problems in the fastest time, which means miners must handle a lot of computing hardware and use a lot of electricity. A global network of miners is competing to legalize blocks of transactions, including NFT transactions. Each participating miner must use large electricity, with only one miner being selected. To validate each new block of transactions.1
Use renewable energy: Evidence-based mines using NFTs can use renewable energy sources. Although the evidence of work is mining is energy-intensive, the required energy source can be emission-free. Solar energy is a popular choice, but other options include wind- and hydro-generated electricity.
Invest in Renewable Energy: With some NFTs selling at amazing prices, it is possible to dedicate a portion of that income to renewable energy investments. A large-scale shift to renewable energy could curb or eliminate the environmental impact of production (NFTs).
Invest in Experimental Technology: Proceeds from NFT sales can also be invested in experimental technology designed to mitigate or reverse the effects of climate change. Carbon capture and storage, which collects and pumps carbon dioxide emissions into the soil, is an example of an experimental technology that some believe could solve the problem of climate change.
Buy Carbon Offset Credit: NFT investors who want to offset the environmental impact of NFT purchases can buy Carbon Offset Credit. Although buying carbon credits does not reduce carbon dioxide emissions, it provides a financial incentive for others to reduce their total emissions annually.
Where to buy energy-efficient NFT
If you want to buy an NFT without harming the environment, you have several options for buying non-fungible tokens. Each of these blockchain platforms uses proof-of-stack and supports NFT creation and exchange:
Byte Power X is a blockchain known as ECO-friendly and hosted NFT marketplaces, including CNFT. Including Blockchain Reliable, both operate an NFT marketplace and help artists create NFT.
Can environmentalists invest in NFT?
If you care about fighting climate change but want to invest in NFT, you may think these two objectives are different. You can protect the environment and still buy an NFT, but to avoid using electricity for about nine days, you can’t just buy an NFT.
Are NFTs bad for the environment?
When it is minted in an NFT market using an energy-intensive method, such as a proof-of-method, the environment can feel an impact, such as a high carbon footprint. To limit environmental damage.
How much energy do NFTs use?
An NFT minting on an Ethereum platform consumes more than 260 kilowatt-hours of electricity – the same amount of energy that the average U.S.
But once Ethereum goes proof-of-work from proof-of-work, power consumption is predicted to drop to 99.95%, or about 20 minutes of television.
Can ESG investors buy NFT?
Investors who prioritize environmental, social, and governance (ESG) issues can still buy NFT. Any NFT ESG created using the proof-of-stack method may be considered potentially suitable for the investor’s portfolio.
If you are committed to aligning your investment portfolio with your position on climate change, consider investing in non-fungible tokens (NFTs) created using the Proof-of-Stack Consensus method only. Although this limits your purchasing options, the limitations are probably only temporary. Once the Ethereum platform has completed its conversion to Stack Proof, environmentalists can buy NFT using Ether (ETH) with a clear conscience.