Since the NFT boom in 2021, we’ve been hearing the word constantly. While NFTs do have a plethora of benefits to their credit, it is true that, as of now, they are not the most sustainable technology.
Unfortunately, minting on the blockchain guzzles up enormous amounts of energy for each transaction. Right now, most NFTs are created on the Ethereum platform. According to Digiconomist, 99.6 Terawatt-hours of electricity is used up by the Ethereum network each year.
How can NFTs become more sustainable?
Ethereum is still the leading blockchain platform by far. Fortunately, with the Ethereum Merge that happened on the 15th of September this year, the platform is set to reduce its energy consumption by 99.5%!
Earlier, a proof-of-work system was used to validate transactions. This required miners to use machines for computation. Now, the proof-of-stake method will be used instead, where miners will stake their ether and later be rewarded for their work. By doing away with energy-guzzling machines, Ethereum may just become a whole lot greener by early 2023.
And of course, there are other options. NFT sports marketplaces, for instance, may move towards Layer 2 solutions like Polygon which compute transactions off-chain and later submit them to the blockchain as a batch, putting energy resources under less strain.
Other platforms have also emerged, offering more scalable blockchain solutions.
A Greener Outlook
With the Ethereum Merge’s success, ecologically sustainable NFTs may become more mainstream. NFT gaming platforms, too, will be moving towards more eco-friendly options, thus making NFTs that much better!