The popularity of NFTs has taken pop culture by storm in the last year. Nearly every day, a celebrity announces their interest and usually drops an NFT collection. Quentin Tarantinos Pulp FictionNFTs to Snoop Doggs NFT record label, a wide range famous people are beginning to see the creative potential of NFTs. Celebrities have played a crucial role in increasing awareness about NFT investment opportunities and the variety of NFT use cases. However, some fans are furious.
Despite all the excitement surrounding NFT, there are still concerns about the technology’s environmental impact. One notable example is the South Korean boy band BTS FaceSignificance A few months ago, they faced backlash due to their plans to release their own NFT collection. BTS was not alone in experiencing similar backlash.
Many fans forget that it is available. It isIt is possible to create NFTs that are not harmful to the environment. Many NFT platforms have adopted more eco-friendly methods of minting NFTs by incorporating energy efficient blockchains like Tezos and Flow, Polygon, Polygon, and Solana. These blockchains use a consensus mechanism called “proof-of-stake” (PoS) for validating transactions on the blockchain. This type of consensus mechanism is much more energy-efficient than proof-of work (PoW), which was the dominant way to validate transactions.
It can be overwhelming to try to understand the technical jargon or misinformation about NFTs. To maximize eco-friendliness before any artist enters NFT, there are four important factors that must be considered: PoW, Sidechains, Carbon Neutrality, and PoS.
Related: How blockchain technology can transform climate action
Proof-of-work
NFTs are primarily concerned about environmental concerns due to a consensus mechanism called Proof-of-work. PoW acts as a security feature for cryptocurrency transactions. Computers must solve mathematical puzzles to verify transactions are legitimate and secure. Computers involved in this process consume large amounts of electricity. This is why some celebrities have faced backlash from the communities after launching NFTs using PoW chains.
Related: Green Bitcoin: The importance and impact of energy use for PoW
Proof-of-stake
Fortunately, not all blockchains need PoW. NFTs can also be minted in an eco-friendly manner, contrary to popular belief. Proof-of-stake is a compelling solution. PoS does not require energy-guzzling machines to solve puzzles to verify transactions. Instead, individuals must stake their crypto in order for them to receive rewards.
Tezos and Flow are some of the most popular PoS blockchains. Tezos has received a lot of attention because of its low energy consumption. To make an easy comparison, 50,000,000 transactions on Tezos generates carbon emissions for just 17 global citizens.
Related: Proof-ofstake or proof of work? That is the question
A leading blockchain in the NFT ecosystem Ethereum is also expected to transition from a PoW-to-PoS system. According to the Ethereum Foundation the networks are expected to be a success. ChangeIt will be able to go from PoW-to PoS, which is rumored to be arriving this fall, and make it approximately 2000 times more efficient in terms of energy use and reduce total energy consumption by 99.95%.
Sidechains & layer-2 solutions
Sidechains, which are independent blockchains that run parallel to mainchains such as Ethereum, offer another way to avoid the excessive energy consumption of PoW. This independence allows sidechains the freedom to set their own rules regarding transactions, security, governance and so on. Sidechains don’t have to rely upon a distributed network computers to verify transactions. This reduces their carbon footprint.
Polygon is an excellent example of a well-known sidechain in NFT. Polygon, a layer-2 protocol, is a third-party protocol that supports the Ethereum mainchain and improves transaction speed and gas efficiency. Sidechains offer a great option for people looking to get into the crypto space. Many of these sidechains are governed by a community, which is a good thing for creators and developers who want to build mutually-beneficial economies with their fans.
Carbon neutrality
It doesn’t matter if a project uses PoW, PoS, or sidechains; it is important that they acknowledge their carbon footprint and keep accountable.
There are many options for projects to make a concerted effort towards carbon neutrality. These include implementing carbon offsets through integrations of carbon removal projects. Raribles integration to Nori, a popular carbon removal platform, was completed earlier this year. This allows anyone to offset their carbon footprints for any Ethereum NFTs listed on Rarible.
It is important for artists to do their homework and ensure that they choose NFT marketplaces that reflect their values.
Related: Green finance requires voluntary carbon markets that work
NFTs are often portrayed as a way to make quick money without considering the environment. However this misrepresents what the Web3 futurists and innovators behind it mean for the community. By adopting environmentally-friendly, utility-driven NFTs, artists can unlock a new realm of possibilities for building connections and sharing value with their fans.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their own research before making a decision.
These views, thoughts, and opinions are solely those of the authors and do not necessarily reflect the views or opinions of Cointelegraph.
Alex SalnikovRarible is a community-centric NFT market. Alex is the co-founder, chief strategy officer and co-founder of Rarible. Alex is a pioneer in blockchain technology and has been active in the crypto space ever since 2012. Alex was previously chief technology officer at CoinOffering which was the first company in the world to offer shares in blockchain assets. A B.A. A B.A. and M.A. in computer sciences, Alex is also a certified instructor. Alexs specialties in data science include market analysis, tokenomics, decentralized finance and NFTs.
