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Are NFTs bad for the environment?

Are NFTs bad for the environment?

The modern age has witnessed a surge in new technologies. AI is now a part of almost every industry. Work has gone virtual and cars are learning to drive themselves.

We often see this as a march toward a utopian world. We envision a future that is cleaner, brighter and easier for our daily lives.

Unfortunately, science and technology don’t work like that. There is no clear and straight path to a perfect techtropolis.

Instead, we use technology in seemingly random ways as it evolves. Some of these implementations can be extremely useful. Some are absurd or actively harmful.

NFT is one technology that has received a lot of attention recently.

 

What is an NFT?

NFT stands for non-fungible token.

Non-fungible is basically a synonym of unique. NFTs are essentially a way to create something digital that acts exactly like a unique physical object.

This idea can be represented by a common parallel between trading cards, and NFTs.

Cryptocurrency can be described as a fungible token. You can still have the same bitcoin if you exchange it for another one.


NFTs work in the same way as trading cards. If I have a particular card and trade it for another, I will no longer have the exact same item that I had at the beginning. This is how NFTs work.

While NFTs can be considered unique pieces, many people use them as investments. They plan to buy an NFT and wait for it to appreciate before selling it off at a profit.

Numerous high-authority sources have analyzed the financial benefits of NFTs. Forbes published a new article recentlyExplaining that NFTs will likely crash in the majority of cases, but that the more valuable uses will likely retain their value over the long-term.

No matter what the timeline, the explosion in NFTs is a reminder to consider the global impact they have.

Are NFTs bad for the environment?

NFTs can be a serious ecological problem.

This seems odd at first glance. How could something digital consume substantial resources?

The technology used to generate NFTs is the key.

Blockchain technology is used to generate NFTs. Blockchain technology is used to generate cryptocurrency.


Blockchain is a decentralized data storage system. It works by creating blocks and linking them in chronological order.

This data storage is the backdrop to which NFTs exist.

This is because generating an NFT takes a lot of energy. Each unique NFT is made up of a sting of data. This requires a lot of complex computing.

Expert analysis is lacking. However, many estimates suggest that each NFT uses as much power per month as a household. Even though the estimate is slightly exaggerated, it still has a huge environmental impact.

This is combined with the fact people are creating NFTs at an alarming rate, and you have the recipe for environmental disaster.

 

It gets worse.

Cryptocurrency is the principal form of currency used for purchasing NFTs. Cryptocurrency is also dependent on the blockchain to generate.

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By using cryptocurrency more frequently, those who purchase NFTs are contributing to the creation of NFTs as well as the production of more cryptocurrency. This is a double win for the environment.

Then there are transactions. Each transaction is saved on the blockchain as data. Without it, none of this would happen.

This storage requires further data creation. While data creation isn’t as energy-intensive than the generation of an NFT it still contributes to carbon emissions.

Can Money Solve NFT’s Problem?

One solution to the NFTs’ high carbon footprint is to offset their emissions monetarily.

NFT entrepreneurs and advocates claim they’ll pay to offset their emissions. Although this sounds great in theory many environmental activists are skeptical.

The problem is that carbon elimination will likely be more cost-effective than NFT creators or investors are willing to pay. It is unlikely that they will solve the problem completely even if they throw money at it.

There is a solution, but it’s not impossible. NFTs can be created in ways that don’t cause as much environmental damage as they do now.

One solution to this problem is to switch over to green energy sources. Renewable energy could be used as a power source for the computers that generate NFTs. This would effectively eliminate their large carbon footprint, while still allowing the technology work as it should.

Another option is to modify the way technology works. Many crypto artists are working hard to make the NFT generation less harmful to the environment. They may come up with innovative ways to reduce the environmental impact.

 

Conclusion

Technology can be a boon or curse for society. AI for small businessMany entrepreneurs have been able to bring new products to market thanks to technological advances in medicine. Virtual spaces also helped us connect during the pandemic.

Although any given technology is neither good or bad, they have good and poor applications. Cryptoart is no exception. Hopefully, the future will see NFTs used more sustainably and in a better way.

 

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