In the last few years, non-fungible tokens have experienced a massive surge in popularity; they have become capable enough to captivate artists, collectors, and investors alike.
However, along with such a rise, it is deeply concerned about the environmental effect created by it. This impact has sparked a significant debate among NFT development experts and individuals willing to invest.
How will this cloud of controversy end? Does NFT development really impact environmental health? To end this debate of whether it really increases environmental crises or whether these concerns are overstated can be backbreaking.
In this write-up, we will discuss how NFT development impacts the environment’s beauty, debunk some myths, and provide a clear picture to avoid any future contributions.
What Are NFTs & Their Impact?
Simply put, NFTs are digital assets tied to things like art, music, or collectibles. They are powered by blockchain technology, most often Ethereum, which uses a system called proof-of-work to secure transactions. PoW is energy-intensive because it requires computers to solve complex problems, and this process burns through a lot of electricity.
Because of this, NFTs have been blamed for contributing to environmental damage. But is it really as bad as people say?
Myth 1: “All NFTs Are Bad for the Environment”
The first big myth is that all NFTs are a disaster for the planet. People hear about the energy consumption of blockchain and assume that every NFT contributes significantly to carbon emissions.
Yes, but it is half true to admit the current Ethereum network consumes a lot of energy due to its reliance on PoW. Yet, the reality is that not all NFTs are created using ETH, and hardly all blockchains have hunger or energy.
For instance, several blockchains such as Tezos, Solana, and Flow use proof of stake or other similar mechanism to reduce carbon impact and energy requirements.
Even Ethereum itself is on the point of a major upgrade to Ethereum 2.0, which will transition to a PoS system, reducing its energy consumption by over 99%. Once that happens, NFTs on Ethereum will have a miniature environmental footprint.
Myth 2: “Minting an NFT Is as Bad as Taking a Cross-Country Flight”
A lot of people have heard that NFT development is equivalent to the carbon emissions of a long-haul flight. This comparison has been all over the internet, but is it true?
This claim is a bit misleading, at some extent, it might be true to say that NFT development on a PoW blockchain like Ethereum consumes energy. But this case is now always the same.
This comparison often fails to account for how the blockchain works. Just like each block contains multiple transactions, the energy use is shared across all those transactions, not just one NFT.
And again, it depends on which blockchain is used. Minting NFTs on a PoS blockchain like Tezos or Solana uses far less energy, which makes them environmentally friendly.
Myth 3: “NFTs Will Always Be Bad for the Environment”
Less intellectual individuals assume that NFTs will always remain bad for the environment and will never become sustainable. But the truth is a bit more optimistic.
NFT development experts and individuals related to blockchain tech crave eco-friendly digital assets. Ethereum’s move to PoS proves that it has massively reduced energy usage and cravings in the market.
It implies how the future of NFTs is safe, shinned, and greener. Being inspired by ETH, numerous NFT development platforms have started leveraging sustainable practices such as Layer 2 solutions to process off-chain and reduce energy consumption.
While some other NFT platforms have partnered with carbon offset projects to neutralize their impact and teach a mindful environmental cost to artists and collectors.
Myth 4: “NFTs Are the Main Culprit Behind Blockchain’s Carbon Footprint”
One common yet mostly dangerous assumption made is that “NFT development is the biggest driver of blockchain’s carbon emissions. Once it is eliminated, blockchain technology will no longer have an impact on the environment.
The reality is that NFs have gotten massive attention in the last few years, but they only have a small ratio of activity on blockchains like ETH. In fact, a large amount of energy consumption in ETH comes with a practice of different activities like cryptocurrency trading and decentralized finance (DeFi) applications.
So, it would not be wrong to say that NFTs are just one piece of the larger blockchain puzzle.
How Can NFTs Be Made Low Impactful?
You might be wondering to know if there is any specific practice to reduce the environmental impact of NFT development. Luckily, we know how to do it. Let’s get into a number of working solutions that have solid contributions to reducing effect:
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Switching to POS: Ethereum’s shift to proof-of-stake is a giant leap to make NFT development sustainable and safe. Other blockchains already using PoS, like Tezos and Solana, are perfect alternatives for this.
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Layer 2 Solutions: NFT development platforms like Polygon reduce the load on Ethereum by processing transactions off-chain. This makes Ethereum efficient without compromising security.
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Carbon Offsetting: Some NFT platforms are functioning with carbon offset projects to neutralize their environmental impact. This could include planting trees or investing in renewable energy to balance emissions.
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Choosing Green Marketplaces: Some NFT marketplaces, like those built on the Tezos blockchain, are designed with sustainability in mind. Creators and collectors have massively reduced their carbon footprint through NFT minting or buying on greener platforms.
Final Thoughts
To end things off, the environmental impact of NFT development is a real concern for all developers and investors part of it. But it is a complex issue that needs to be addressed seriously rather than some alarmist headlines.
Yes, we accept certain blockchains like Ethereum, which now consume a lot of energy to work, but this is not applicable to all NFTs. It would be wrong to say that everyone has a hunger for energy to work. With current and upcoming technologies, the individuals and experts in this niche are putting extra effort into ensuring it is much more eco-friendly.
If you are an NFT development expert or a newbie developer, remember that it is your responsibility to make choices that prioritize sustainability. So be careful when you make choices; with the right innovations and decisions, you can easily continue to grow without leaving any carbon footprint.
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