By: Archana Naresh
January 20 2022
Non-fungible tokens (NFTs) are damaging to the environment.
Share Article:
Fact-Check
The Verdict True
Non-fungible tokens use huge amounts of energy, leading to high carbon emissions.
Claim ID 18d1a5d8
Non-fungible tokens use huge amounts of energy, leading to high carbon emissions. NFTs (nonfungible tokens) are a type of cryptocurrency. An NFT is a unique, irreplaceable piece of digital media. There as lots of types of NFTs, as these are any kind of digital creation with a high value, such as a piece of digital artwork, a song, a film, or a game. NFTs as digital art pieces have become enormously popular, with sales skyrocketing in recent months. However, crypto artworks have a huge environmental impact because of the way they are created and sold. Most creators use Ethereum, a blockchain technology that uses a model called proof-of-work to create digital artworks. Ethereum involves an energy-intensive function called mining, in which high-powered computers solve complex puzzles. The process leads to higher energy consumption that leads to greenhouse gas emissions. Estimates tell us that NFT transactions are likely to have a carbon footprint more than 14 times higher than that of mailing an art print. However, ascertaining the carbon footprint of mining an NFT is a complex process. In the current state, Ethereum consumes more electricity than many countries. When someone buys or sells an NFT using Ethereum, this leads to increased gas emissions.