Are All NFTs Bad for the Environment? - YouTube

Hello and welcome to Kalkine TV by Kalkine Media.

I am ……..and today we are going to discuss the trending NFT space and its impact on the

environment.

While the cryptocurrency space has gained traction throughout 2021, it has also garnered

criticism regarding its impact on the environment.

Earlier this year, the mining practices of Bitcoin came under fire after it was revealed

that large amount of energy is required to mine the world’s largest token.

The latest corner of the crypto space to catch fire this year has been the NFT or non-fungible

token space.

However, much like Bitcoin, the popularity of NFT has resulted in an increase in the

energy required

to mine them.

The NFT space has exploded this year with everyone from celebrities to major corporations

hopping to board the NFT train.

Let us first understand what is mining?

The term “mining” in the context of cryptocurrency may be confusing to some and that’s understandable.

When one thinks of mining, they immediately picture something being unearthed from the

ground.

Of course, this is not the case with crypto mining, but these coins are designed to be

“released” to the public.

The way this is done is through several high-powered computers solving complex algorithms with

“proof-of-work” consensus digital currencies, like Bitcoin.

When the algorithm is solved, the coin is released.

NFT mining is actually called “minting” although the process is the same.

Further to that, NFTs have recently been identified as sizeable carbon emitters.

Do you know, NFTs also contribute to carbon emissions?

A recent report by carbon analyst, Erin Davies, outlines that, on average, a piece of printed

art results in around 2.5 kilograms of extra carbon dioxide emissions.

This equates to the carbon dioxide emissions of a regular petrol-powered car being driven

for five miles.

While this may seem like a drop in the ocean, the report estimates one NFT’s lifetime

CO2 emissions equate to a car traveling more than 500 miles.

Furthermore, the CO2 emissions from the minting and auctioning off an NFT can be up to 100

times higher.

Let us now learn how NFTs are mined?

Many of the world’s NFTs are mined on the Ethereum network, which also uses proof-of-work

- the same mining protocol as Bitcoin.

Ethereum’s network is the second largest and oldest platform in the crypto space.

Although Ethereum’s developers are currently working feverishly to upgrade to a more environmentally

friendly proof-of-stake protocol, it still currently uses the energy intensive proof-of-work

consensus.

While it’s perhaps an oversimplification to say that NFT’s are bad for the environment,

perhaps it would be more accurate to say that proof-of-work mining is bad for the environment.

As soon as Ethereum can upgrade to a more energy-saving solution to mine its tokens

and NFTs, the oracle will continue to be taxing on the environment.

That is all for now, hope you found the video informative.

Keep watching Kalkine TV for all crypto market insights and trending news.

This is ……..signing off.