The Environmental Impact of NFTs

NFTs are a new and exciting way to invest, but the question on everyone’s mind is whether or not this technology will have an impactful environmental effect? Even with all of the buzz around NFTs there still remains some controversy surrounding them. One point often cited as criticism against these tokens- -and cause for hesitation if you were thinking about adopting it oneself–is their potential environmentally harmful result.

In a move that may have you reaching for your calculator, it turns out users on the Ethereum blockchain are more energy-consuming than Argentina. If we’re assuming this data is accurate (and so far there’s no reason to doubt), then someone who owns 1% of all NFTs in existence would use up 0-9 gigajoules each day just storing those assets online–more than what some countries consume.

The impact NFTs have on the environment is actually quite minimal when you consider that miners will still be producing blocks, even if there are no transactions. Secondly and most importantly for this article’s purposes – solutions exist to some blockchain’s consumption of energy.

Specifically, proof-of Stake blockchains are less energy-intensive because they do not require the use of mining. They can be up to two million times more efficient than Bitcoin and Ethereum in regards to their usage on this front – a major advantage.

But with the emergence of a more energy-efficient blockchain and plans to shift Ethereum from a proof-of-work model later this year, it is still estimated that millions upon billions worth of CO2 will have been released into our atmosphere.

Los Angeles-based artist Kyle McDonald is hoping to resolve this issue by launching his new NFT project, Amends. It’s a digital collection of sculptures representing CO2 emissions. The NFT project will be made available through three major marketplaces: OpenSea (a Venice-based art platform), Rarible(Toronto), and Foundation(London).

“We can either be irresponsible or take responsibility for our actions,” said McDonald in an official press release. “The science shows that even if we end all emissions today, humans still need to remove hundreds of billions of tons of historical greenhouse gases from the atmosphere and ocean.”

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McDonald’s new line of sculptures is not only a representation of the three biggest NFT marketplaces in this world but also how each partner organization addresses CO2 emissions.
In partnership with Project Vesta and Nori, McDonald’s carbon removal artwork is designed by artists including strategist tenure Tradewater. The pieces are made from recycled materials such as plastic bottles shipped back home after being used overseas which helps keep them out of landfills where they contribute significantly to greenhouse gases. So, now you can buy these beauties and in so doing contribute to the cause.

The company Rarible is committed to the development and implementation of regenerative practices on farms. These techniques help turn farmland into CO2 sponges, which in turn improves growth rates for farmers’ crops while also improving soil quality across large areas.

Tradewater is a company that specializes in the disposal and destruction of refrigerants. They help keep our planet green by disposing of these dangerous gases before they can enter into Earth’s atmosphere. These organizations are using this auction to raise funds in order to fight climate change.