Forkast explores the growing backlash among fans over blockchain technology’s energy use in the last part of a special series on NFTs, the music industry and the music business.
Part 1 of this series examines NFTs, blockchain technology and how they could be used. Redistribute money, power and resources in the music business. Part 2 explores K-pops new token economy. Part 3 is a look at How the NFT platform allows musicians to enter the crypto world.
Asia’s music industry has been K-pop entertainment agents are trying to ride the NFT wave with all their might. They want to make a profit off their artist loyal following by adding nonfungible tokens (non-fungible tokens) to their range of licensed merchandise.
But the music business’ enthusiasm over NFTs is not shared by some fans. Despite the recent great success of Jay Chous PhantaBear NFT collection from Taiwanese pop stars, there seems to have been a rise in opposition to NFTs among K-pop and other music lovers.
Music fans are not content to accuse artists and companies of being greedy. They fear that the NFTs blockchain technology will be harmful to the environment, despite the lack of supporting data.
K-pop sensation BTS, or ARMY, has many fans. Trending hashtagsIncluded #ARMYsAgainstNFTAnd #BoycottHybeNFTOn Twitter, many people claimed that NFTs are not environmentally friendly. Many said that they prefer tangible merchandise over digital.
This whole thing is stupid. Don’t sell just about anything in the name of our boys Just improve quality of the freaking albums!#BoycottHybeNFT #ARMYsAgainstNFT pic.twitter.com/qLTB5mOvtA
shiv_NFVEVR (@patel1103) November 5, 2021
The fan backlash was triggered by recent announcements by South Korean talent agencies on their artists’ plans for NFTs and the metaverse. HYBE, which is the label behind BTS, has teamed with blockchain company Dunamu for NFTs that fans can collect and trade on its current community app Weverse. JYP was also a top K-pop talent agent and has partnered with Dunamu for a platform for NFT distribution, trading, and more.
Cube Entertainment, which manages popular bands such as BTOB, PENTAGON, and (G)I-DLE, has partnered up with Animoca Brands in a joint venture to build a music metaverse and issue NFTs.
Thomas Baudinette, a Macquarie University lecturer in Sydney, told ForkastFans were united in their concern that the companies should invest in art and not into making money.
Fans also considered HYBE and BTS hypocritical.
Here are some BTSStanding at the [United Nations]Baudinette stated that they are advocating for climate justice and democratization, and that their management company is now involving itself in an industry that has historically not been very good at engaging on issues of climate change.
Baudinette stated that K-pop as a fandom is full of informal economies such photocard trading, and other highly creative practices among its fans. Although encouraged by agencies, they are not regulated. However, if companies start to regulate these mechanisms of engagement, it will be a problem. [by having fans trade NFTs on official platforms]It kind of dampens the fun of Kpop.
Areum Jeong, an assistant professor who teaches Korean pop culture at Sichuan University-Pittsburgh Institute, said if music companies insist on issuing NFTs, fans are telling them loud and clear their desire for greener technology. Fans are also able to see the economic motives behind NFT plans.
Jeong said that this is an opportunity for companies to create new content that could generate profit. Forkast. In a sense, it’s like seeing fans as a way for them profit more.
How polluting can NFTs be?
The environmental impact of NFTs is still a matter of debate.
Last spring, a New York Times articleConcerns about NFTs and global warming were sparked by the link between greenhouse gases, NFTs, and NFTs. The report, citing An analysisIndependent researchers concluded that the environmental equivalent to 211 kilograms CO2 emissions could be caused by the production of one NFT. However, the data analysis was later completed by the researchers. Clarified that analysis as being biased and that it was not an all-sides-of-the-story research note.
There are also some blockchain industry experts ClaimThis set of data was not complete and there is currently no data on the true environmental impact of NFTs. It was difficult to weigh all factors, including the carbon footprints of NFTs alternatives.
This is one thing that I wish we had better hard data for. It’s concrete and based in actual scientific study. Not just guesses and assumptions, Zach Burks who is the CEO and founder Mintable NFT marketplace, said. Forkast.
Continue reading: What is Bitcoin’s environmental footprint? And what are the possible solutions?
U-Zyn Chua is the CTO and lead researcher atDeFiChain, said: If we look at that whole [live]Concerts have a huge environmental impact. Which one will have more environmental impact if they are compared to NFT? NFT would have less impact, according to me.
Chua said that the blockchain used for NFT was not created solely for NFT and music use. Chua stated that NFT simply rides on an existing infrastructure, which is already consuming the same resources without or with NFT. Forkast.It is not about consuming more than what is already being consumed.
Greener options
The NFT energy issue is a policy and technology issue for the crypto industry. It is also about how easy it is to access renewable energy sources like solar, wind, and hydropower. Chua stated that crypto miners often use excess electricity from these clean sources that would otherwise go to waste.
Chua stated that this is a store of value that can be used to incentivize greener choices and activities.
Ethereum, which is the NFTs account for a large percentage of the marketare currently built upon, is aiming at becoming more energy-efficient. It is expected that this year it will migrate from its current energy-intensive proof of work (PoW), model to a proof of stake (PoS), consensus mechanism that is expected not to consume as much energy as the PoW.
Burks stated that every NFT is unique in terms of the contract it uses and the gas it emits. It’s not about the NFT but the Ethereum network.
Continue reading: How UN goals guide new ESG investment vehicles in blockchain
Many NFT issuers want to make money on PoS blockchains with lower energy. DigitalArt4Climate is an NFT initiative that is associated with the United Nations. It aims to promote art on PoS blockchains and inspire environmental activism around world.
Miroslav Polzer is the founder and CEO at IAAI GLOCHA in Austria, which was responsible for DigitalArt4Climate. ForkastBecause the initiative was built on the proof-of–stake Polkadot/Kusama NFT chain, the carbon footprint is a million times smaller than other proof-of–work based blockchain solutions.
Dapper Labs NBA Top Shot was one of the most loved NFT collections last season. It is powered by the Flow Blockchain, which also runs on a PoS protocol.
Ultimately, the goal is to move to the most environmentally-conscious process possible, Burks said. But it’s an iterative process.
