NFTs, or non-fungible tokens have gained a lot of buzz lately as digital art has sold for millions in some instances. They are essentially digital collectibles which are usually placed on a bidding market place such as Rarible, Opensea, or one of the many other auction sites. Most of these marketplaces allow users to exchange crypto for the NFTs. The most popular crypto being traded is currently Ethereum (ETH).
THE ETH PROBLEM
Unfortunately, ETH consumes massive amounts of energy to mine and to keep track of transactions. An Ethereum transaction can have a carbon footprint equal to that of an hour long flight or much more. The amount of power currently being used for ETH transactions alone can power all of Panama for a year. NFTs themselves are not to blame for an increase in energy consumption, rather it’s the cyrpto that is being used to purchased and sell NFTs that is detrimental to the environment.
NFTs Vs Mother Nature?
So do we cancel NFT’s? No, digital art is here to stay and NFT’s have certainly provided a new renaissance in the art space. There are several practices in place that reduce the environmental impact when trading NFT’s, however some of these practices such as Sidechaining or Bridging crypto can be unpredictable. The most effective method is to use a marketplace that is not back by the ETH blockchain. There are several NFT marketplaces that utilize other blockchains, you can find a list of eco-friendly NFT sites here. It will take transparency and accountability to ensure benefits digital art outweigh the environmental cost. Most of the world has jumped into Sustainable Super Hero mode or is preparing to do so.
A Sustainable Future
Despite trips to Mars, Earth is the only planet we have and WE are a serious threat to our planet, so WE need to be proactive in protecting it. Understanding and accountability go along way and when we understand the damage we can cause, we are more likely to find an alternative that is less damaging. Let’s work together to hold each other accountable for a bright future on our beautiful planet. Happy Earth Day
#NFT #EarthDay #Crypto #Technology