NFTs with Low Carbon Emissions could be an Option

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6 Jun 2022

Proof of Work (PoW) is used to verify transactions and store data on the Ethereum blockchain, developing new forms of money (NFTs).

The Proof of Work algorithm is directly responsible for the Ethereum network's massive power consumption.

It is possible to use different methods, such as proof-of-stake (PoS), which uses much less power than the typical proof-of-work mining method.

The PoS mechanism has already been adopted on several other blockchains, including Polygon and Tezos, supporting NFTs and using significantly less power than Ethereum.

Ethereum is anticipated to consume 33.57Twh per year, but Tezos is predicted to use 0.00006Twh annually.

It is estimated that the whole switch to Proof-of-Stake will take place between 2021 and 2022, based on Ethereum.org, which has already initiated the staking process.

Currently, Ethereum is undertaking a shift to the PoS system, and this process has already started.

As a consequence, NFTs will have a significantly reduced carbon footprint.

According to these individuals, proof-of-work blockchains can be acceptable in the eyes of some if they are powered by sustainable energy sources like wind or solar.

Both supporters and skeptics of the technology have shared this sentiment.

Proof-of-work blockchains utilize 39 percent renewable energy, according to a 2020 Cambridge University research.

Also, the experts predicted that this number would rise in the future.

Our carbon footprint and environmental impact aren't only based on the amount of electricity we consume, regardless of which blockchain we choose to use.

There will be an increase in bitcoin miners and gamblers as the market for virtual currencies grows and spreads. Increasing the number of computers used for cryptocurrency mining would increase the amount of carbon dioxide (CO2) emitted throughout the manufacturing and mining processes.

As a result, more computers will be used in cryptocurrency mining. Because of this, it's possible that even with a PoS blockchain, the carbon footprint estimates for NFTs are far higher than previously thought.