environmentBelieve it or not, buying and selling in NFT games affects the ecosystem in which we live. In fact, the carbon footprint left by these transactions is still incalculable. But, without a doubt, they represent an abysmal damage to the environment, so it is important that you see how this procedure occurs.
What part of the process of buying and selling NFTs is the one that affects the environment?
To understand the environmental impact generated by companies, especially during the purchase and sale of NFTs, we need to know how they work. In itself, these games produce a non-fungible Token, that is, similar to a cryptocurrency. Similar to buying a fan token on Socios.com, thus the carbon chain is activated.
So, its effectiveness will depend on the supply and demand that occurs within the game. Thus, as the number of players increases, its value increases. However, during these transactions I know produce a high number of carbon emissions that contribute to global warming.
Blockchains or blockchain
When you play inside an NFT you can have fun and make money. What you may not know is that behind it, a process is taking place that includes an online blockchain that is linked to cryptocurrencies.
This blockchain generates tons of carbon emissions that pollute the environment. Since, requires an excessive level of energy in just one transaction. Some ways to deal with the problem are:
- Take advantage of the electricity that is used with the use of renewable energy sources.
- Another alternative that we found is that of modifying the proof-of-stake blockchain algorithm. Since Ethereum, one of the most important cryptocurrencies in the world, is implementing this modality in its accounting book. Therefore, we have seen evidence that if you spend less electricity.
Excess power consumption
One of the parts of the process of buying and selling NFTs that most affects the environment is the excessive electricity consumption that is generated. For this reason, the ecosystem suffers the ravages at the time of the blockchain, at times like the purchase of Axies in the Marketplace to create a team.
For these to be carried out optimally, the use of many computers is necessary. This teams produce high energy consumption. There are even studies that indicate that a Bitcoin can spend a percentage similar to the electricity of an entire country in a year.
However, there is much skepticism about these investigations. Well, the exact calculation of the energy consumption of NFTs is still a mystery. Since, we know that there are many interests involved and it is not convenient for large emporiums that said information comes to light.
How big is the carbon footprint of NFTs?
The reality is that to date we do not know an exact calculation of the damage to the environment generated by this technology. However, we are sure that it contributes greatly to the impact on the environment.
We can confirm this, since different studies have been carried out to find out the size of the carbon footprint left by NFTs. From there, we can extract some quite interesting hypotheses:
- We know the approximate amount of carbon footprint that Bitcoin generates, but NFTs do not use that cryptocurrency. On the contrary, these are governed by Ethereum, which would be more serioussince this one has a higher value than the first one.
- The energy cost of a purchase-sale can be equivalent to that consumed by two and a half family homes, for a whole day.
- Various NFTs are not limited editions, but are part of a series. But his creation is not the one that consumes the higher percentage of carbon emissionis the process of registration in the accounting book of the blockchain.
- According to the study carried out by Memo Atken, it illustrates a possible calculation, indicating that 18,000 NFTs leave a carbon footprint of 211 kilos each. This amount, we can compare with the annual expenditure of a person in Europe or a two-hour plane ride.
What initiatives have been put forward to reduce the carbon footprint of the NFT?
before the imminent environmental impact that produce the blockchains in these NFTs, strategies have emerged to minimize the damage. Although there is no way to reduce the carbon footprint, transactions with Ethereum have managed to balance it by recycling electronic waste.
Famous artists like Beeple, has implemented a strategy so that the carbon footprint left by their works of art, be null. Although we know that it is impossible to avoid its emission, it seeks neutrality by investing in carbon capture projects and renewable energy.
Getting to know the ‘DigitalArt4Climate’ movement
The United Nations Organization (UN) aims for the implementation of NFTs that are less harmful to the environment. So this movement was founded in order to raise awareness about climate change.
In this way, the objective is to support NFT artists, to achieve a more sustainable process. Thus, they make a difference in ecological preservation with the use of technology.
So, the idea is to sow the ideology of using the carbon neutral blockchain and promote the capture of it. Thus, the artists who join encourage care for the environment they will reap great benefits. Since, they will be able to show and negotiate their works within this format.
Who make up the ‘Climate Chain Coalition’ network?
This is another initiative to raise awareness about climate change. The they integrate 250 members, where we will see many organizations looking to improve blockchain technology. Thus, the aim is to optimize the economy worldwide, but with a focus on caring for the environment.
So, corporate responsibility with respect to carbon emission is the crucial issue in this organization. Through the agreements made at the climate change summit in Paris, we note that the Climate Chain Coalition seeks to:
- Transparency in reports related to carbon emissions. Thus, companies will maintain clear data on the environmental impact that their NFTs are causing.
- Monitor blockchains and control carbon emission, instructing nations to undertake renewable projects, minimizing their effects.
In this way, the aim is to achieve compensation for the environment for the pollution generated by technology. So, the balance is achieved by executing strategies that minimize environmental impacteven as NFTs continue to be used, leaving a serious carbon footprint on the ecosystem.