Minting or transferring a non-fungible token (NFT) is usually quite energy-intensive. However, it doesn’t need to be. Blockchain platforms using the proof-of-stake operating method can generate non-fungible tokens without excessively using electricity and negatively impacting the environment.
What you need to know is that a proof-of-stake method uses less energy than proof-of-work because it doesn’t require the extensive use of computing hardware.
While, on the contrary, miners participating in a proof-of-work blockchain network are motivated to consume electricity in an attempt to mine a block successfully, validators contributing to a proof-of-stake blockchain are required to stake-agree to not trade or sell-their cryptocurrency holdings.
Notably, implementing a staking requirement for blockchain validators is a way to secure a blockchain without requiring the network’s participants to consume electricity excessively.
Non-fungible tokens and ecology
Non-fungible tokens, in other creative ways, can be less impactful to the environment. Here are several options:
- Option number one is quite straightforward. Miners must use renewable energy. Importantly, miners using proof-of-work to generate NFTs can use renewable energy sources. While proof-of-work mining is quite energy-intensive, the source of the required energy can be free of emissions. Solar power is a popular option, but other options include wine- and hydro-generated electricity.
- Another option is to invest in renewable energy. People are willing to pay a lot of money for non-fungible tokens. It is possible to allocate a portion of the money to renewable energy investments. A large-scale shift to renewable energy could reduce or eliminate the environmental impact of producing NFT.
- It is a good idea to invest in experimental technologies. For example, NFT sales proceeds also can be invested in experimental technologies designed to reduce or undo the effects of climate change. Carbon capture and storage, which collects as well as pumps carbon dioxide emissions into the ground, is an example of experimental technology that some believe can help to solve the issue of climate change.
Do you want to buy energy-efficient NFTs?
If you want to buy a non-fungible token without causing harm to the environment, then you have several options. Each of these blockchain platforms uses proof-of-stake as well as supports the creation and exchange of NFTs:
- The first option is Solana. One important fact: The Solana blockchain supports a broad range of NFT marketplaces, including Magic Eden, Rabbit Hole, as well as Solanart.
- Another option is Algorand. The Algorand blockchain supports Aorist, a climate-focused NFT blockchain for artists, in addition to a number of NFT marketplaces. The Algorand blockchain is well-positioned to support NFTs because the blockchain is designed to never fork-or split-into duplicate versions.
- We shouldn’t forget about Cardano, which is the blockchain known for being environmentally friendly. NFT marketplaces hosted on Cardano include CNFT as well as Galaxy of Art.
- We need to mention Tezos as well. The Tezos blockchain hosts several NFT marketplaces, including Rarible, which both operates an NFT marketplace as well as supports artists’ creation of NFTs.