Written by Nezwan Helmy
Like with any new technology, there are a slew of issues on NFT that have yet to be resolved: The negative environmental effect of NFTs is perhaps the most widely addressed issue regarding NFTs today. Vast majority of NFTs are stored on the Ethereum blockchain, which is ecologically damaging in terms of energy usage.
When it comes to asset ownership, NFT fans laud it as the next great thing, but the Internet is strongly opposed to it because of its negative effect on the environment. Particularly in light of the current state of energy inefficiency and carbon emissions.
Is it possible that NFTs will bring the world to an end? Is this all simply a part of a larger anti-NFT campaign, or something more sinister?
Here’s an impartial look at the situation.
The ascension of NFT
NFTs have given a new digital face to the world of collectibles, in the same way that cryptocurrencies have transformed financial transactions.
Because transactions are recorded on blocks, it is possible to distinguish between the original and its copy.
This will be a huge relief in sectors that have been plagued by conflicts over royalty payments, asset ownership, and plagiarism in the last several years.
Is it true that NFTs have a significant carbon footprint?
NFTs are powered by blockchain technology, which is the same technology that powers Bitcoin and Ethereum. Their enormous energy usage and rising transaction costs, both have earned a bad reputation.
If we dig deep enough, we will discover that it is not the blockchains themselves that are to blame, but rather the consensus methods that they use.
In order to power their nodes, the Ethereum and Bitcoin blockchains have both borrowed the energy-intense proof-of-work consensus method.
Because of the incentivization, the competition for cryptocurrencies is becoming increasingly fierce as the prices of cryptocurrencies reach new heights. People begin to pour money into mining warehouses, where computers work nonstop to harvest riches, using an enormous amount of electricity in the process.
Despite the fact that more efficient options have appeared on the market, Ethereum continues to dominate the NFT industry. The Ethereum blockchain is responsible for the creation of a significant portion of the NFTs.
Some believe that the explosive growth of NFTs, as well as the resulting increase in blockchain transactions, has the potential to bring the entire world to a grinding halt.