What is the environmental impact of NFTs?

Sep 21 16:11 2022 TechGlobeX Print This Article

Crypto and NFts are future of finance and wealth management. So let's learn how NFT can impact the world environment while providing greatest technology revolution.

Like cryptocurrencies,Guest Posting NFTs have disrupted the world as we know it. Now instead of the Mona Lisa, collectors are clamoring over the works of Beeple, 3LAU, and José Delbo.

But unlike physical works of art, NFTs are treated differently.

How do you store NFTs?

Like cryptocurrencies, you can store NFTs on specialized digital wallets. In fact, some of the best Tezro NFT wallet apps have built-in support for mainstream cryptocurrencies. So that way, you can access both your crypto and non-fungible tokens on a single platform.

But do keep in mind that security is a major issue for digital assets. As cryptocurrencies and NFTs have become extremely popular, hackers and cybercriminals have taken to hacking into NFT/crypto wallets and stealing their contents. Despite the various steps taken by wallet providers, hackers are becoming increasingly sophisticated.

It is because of this that I highly recommend that you make use of both hot and cold wallets. A cold wallet is a hardware-based storage device like a pen drive or hard disk that stores digital assets offline. And this makes it next-to-impossible for a hacker to gain access to your crypto tokens or NFTs.

What are NFTs?

An NFT or non-fungible token is a piece of media that has been tokenized on a blockchain such as the Ethereum network. Besides Ethereum, Solana, WAX, Tezos, and Flow are other popular blockchains for NFTs. But as Ethereum is the most established, it currently remains the network of choice for most.

What is the environmental impact of NFTs?

From a technical standpoint, NFTs do not actually have any impact on the environment. Instead, it is the method in which these assets are produced which have raised a few eyebrows. This is because NFTs require immense quantities of computer processing power to validate transactions. And in turn, this leads to a huge consumption of electric power.

Let’s now take a look at the overall environmental impact that NFT trading has on the environment:

  1. Higher carbon emissions
  2. An overall increase in global temperature caused by global warming
  3. Rising fossil fuel consumption to generate energy for NFT and crypto mining

So naturally, you’re probably asking the question, are there any environmentally friendly NFTs that require less energy. Fortunately, the answer is a resounding yes. The popularity of NFTs has encouraged enthusiasts around the world to switch to greener alternatives.

This is why NFTs minted on the Solana and Tezos blockchains have become increasingly popular. As these blockchains use a PoS consensus mechanism to validate transactions, they require significantly less processing power. Let’s take a look now at some green alternative NFT blockchains.

Green NFT Blockchains You Can Consider

Here’s my selection of the top 3 best environmentally sustainable blockchains:

1. Solana

A popular alternative to Ethereum-powered cryptocurrencies, Solana has been widely praised for the speed in which it processes transactions. And all for minimal gas fees unlike those often charged on the Ethereum network. Because of this Solana is sometimes called the “Ethereum killer'' by some. And as an added plus, its NFTs are supported by most NFT wallet apps.

More importantly, because Solana uses significantly less energy then Ethereum to process transactions, the blockchain has a much smaller carbon footprint. This is thanks to its PoS consensus mechanism that keeps things moving quickly. So, it should come as no surprise to see that Solana is regarded as the second most popular NFT blockchain available.

2. Tezos

Another top contender for the NFT hot spot is Tezos. It utilizes the same PoS consensus mechanism as Solana to validate transactions. Besides that, the blockchain has an active community behind it who appreciate the network’s long-term upgradability.

One of the reasons why Tezos is a top choice is because it's energy-efficient, security focused, and scalable. Meaning that it is environmentally-friendly, safe to use, and won’t slow down the more users it receives. All of which makes for a seriously solid NFT blockchain.

3. Flow

Considered by some to be a successor to Ethereum, Flow was built with scalability in mind. So it should come as no surprise to see that the network is energy-efficient, scalable to size, and highly secure. In fact, studies show that minting an NFT on flow uses less energy than performing a Google search.

Another thing you would do well to note is that Flow has partnered with reputable names such as NBA to mint custom NFTs. All of which goes to show the potential this blockchain network has. And to top it off, Flow NFTs can be stored on the best NFT wallets.

Closing Thoughts

NFTs are likely to be the future of art and collectibles as we become increasingly digitalised. But the onus is now on developers and enthusiasts to seek out more environmentally-friendly solutions. And one way of doing so is minting NFTs on blockchain networks that are sustainable.

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