Non-fungible tokens and why they are bad for the planet

WHAT ARE NFTs ?

A non-fungible token (NFT) is a digital art piece’s evidence of ownership. It was created as a means for digital artists to establish the uniqueness of their work in a medium where duplication is common. When an artist creates an NFT of their work, it creates an entry in a digital ledger through blockchain technology. NFTs are typically issued in Ether, a cryptocurrency. This blockchain entry is unique to the piece of work minted, therefore it serves as evidence of ownership when acquired from the artist. At the point when you sell an NFT, you are compensated in Ethereum tokens, which may be liquidated whenever, depending on the moving conversion scale. They are being heralded as the new frontier of technology, with some hailing them as a method for artists to make money and others condemning them as an earth-killing polluter.

NFTs PAVING ITS WAY IN INDIA

NFTs are gaining traction as a new way for Indian artists to promote their work and earn money. Ritviz and Santanu Hazarika, an indie pop icon and visual artist, sold their collaboration for $391.80 on the Indian crypto exchange WazirX’s NFT marketplace just 10 seconds after it went live. Vishal Malhotra, a TV host and actor, was another notable name who sold his NFT, albeit for a much greater price of $5,500.

Amitabh Bachchan, one of Bollywood’s biggest ever stars, is preparing to release his own NFTs, which will include some of the most distinctive and exclusive artworks surrounding his identity. The NFTs dedicated to Amitabh Bachchan will feature artworks such as verses from his father, Harivansh Rai Bachchan’s legendary work Madhushala narrated by the megastar, backstories about Big B’s works, signed posters from his films, and a few other rare elements from his life converted into digital artwork. Not only that, but the company that is hosting the auction is also looking for additional Bachchan-related NFTs. Can you imagine the increase incarbon emissions?

HOW ARE NFTs BURNING THE PLANET ?

Non-fungible tokens that are individual bits of crypto art, are unquestionably somewhat answerable for the millions of tonnes of planet-warming carbon dioxide discharges created by the digital forms of money used to purchase and exchange them. NFTs are known to be “ecological nightmare pyramid scam” by artists. NFTs have recently been in the news, with some selling for millions of dollars.

NFTs have soared in popularity, attracting multi-million-dollar trades and celebrity attention. But, in addition to making for interesting headlines, it’s also causing an unintended side effect such as huge energy usage, which adds to the overall carbon footprint of cryptocurrencies, particularly Ethereum. A single Ethereum transaction uses up to 70.32 kWh of energy. This corresponds to a carbon footprint of around 34 kg of CO2 (CO2). This carbon footprint is the equivalent of watching over 5,700 hours of YouTube videos or making over 76,000 credit card transactions.

Proof of work (PoW), which is an energy-intensive mining procedure, is used to protect Bitcoin, Ethereum, and many other cryptocurrencies. As a result, these blockchains are designed to be energy-intensive. According to a recent study, if Bitcoin becomes as extensively embraced as previous new technology, it might elevate the Earth’s temperature 2 degrees celsius above historical levels.

While the issue of NFT-related emissions has been largely overshadowed by the allure of wealth creation it comes at a time when environmentalists and climate experts have been cautioning of remarkable temperature rises sea level rises, species extinction, severe weather events, and other signs of global warming actions when compared to traditional methods of consumption.

THE ALTERNATIVES

The simplest option is to avoid buying or selling crypto art altogether and instead support artists through established channels. Another option is to select superior cryptographic platforms. Proof of Stake supporters claim that it is 99 percent more energy efficient than Proof of Work. This would reduce the average NFT’s carbon footprint to roughly 2.11 kg CO2 There are a lot of Proof of Stake crypto art platforms out there right now. They’re smaller than their Proof of Work competitors, and they haven’t yet achieved the headline-grabbing sales statistics that have been reported, but they provide a method to support NFT artists without causing ludicrous carbon emissions.

Carbon offset is one of the most common methods platforms and artists have attempted to reduce their emissions. However, considering the huge carbon footprint of NFTs, others argue that offsets are insufficient to address the issue.

In today’s society, ordinary customers are rarely given such a tremendous environmental choice. Because there are no clear alternatives, most people drive vehicles, consume meat, and dress in mass-produced apparel; the institutions that foster these behaviours were in place long before any of us were born. Crypto art, on the other hand, has not yet become as ingrained in our culture. There’s still time to stop this from becoming the standard when it comes to supporting artists.