How are NFTs Use Energy?
For making NFTs via the minting process and to trade them, we need to use blockchain technology and pay a “gas fee” for the related processes and also data storage on the blockchain. For these processes, a consensus mechanism must be developed on the blockchain in which NFTs are in circulation. There are some ways to ensure a consensus mechanism.
The traditional “proof of work” (Pow) mechanism that used in early layer blockchains like bitcoin and the common NFT making blockchain platform “Ethereum, needs “intense mining” processes and consumes a lot of electricity/energy, and dissipate heat in relation to the blockchain platforms volume and consensus technology.
According to NFT Club’s research, adding an NFT to a blockchain costs 83 kg of CO2 to the environment. It is also stated that to offset one of the world’s biggest NFT collections (“CryptoKitties”)’s a carbon footprint, there is a need to plant 4 Million trees.
Are There Any Solutions to Make Them Environment Friendly?
As mentioned above, there are some ways to ensure a consensus mechanism and there is another mechanism that consumes far less energy than PoW called “proof of stake” (PoS). When we compare them, PoS supported blockchain Tezos consumes 0,00006Twh of Electricity when Ethereum consumes 33,57 Twh in a year. Because of this consumption, also Ethereum is decided to move to PoS from PoW. Furthermore, reducing the number of transactions required on the blockchain will consume less energy than now.
Are These Solutions are Sustainable?
The short answer is YES. When the transition period for Ethereum ends, the most common NFT minting/trading platform’s electricity consumption will literally over a day or overnight nearly drops to almost zero according to a research affiliate at the Cambridge Centre for Alternative Finance. Also, a PhD fellow and sustainable blockchain technology researcher, Susanne Köhler, who offers to reduce the number of transactions required on the blockchain, claims that it is possible to make NFTs greener in the future.
