How do NFTs impact the environment?

From a few months, the NFT market has gained a lot of growth. But along with its rise, the debate over its environmental impacts has also started. There are several assertions that the creation of non-fungible tokens, or NFTs, causes a lot of carbon emissions. It is also said to consume a lot of energy. Hence, NFTs have a negative impact if these accusations are worth believing.

NFTs are produced with Proof-of-Work, or PoW, blockchains, which are power-intensive. Bitcoin and Ethereum are examples of PoW blockchains. But not all NFTs operate on PoW blockchains. The creation of NFTs on Proof-of-Stake models, or PoS models, has started. These models are eco-friendly.

Furthermore, the carbon footprint of NFTs is not confirmed yet statistically. Besides this, we cannot compare the carbon emissions of NFTs to other industries such as transportation and logistics because their blockchain transactions are far less in number.

When the world progresses technologically, it impacts the environment as well. But NFTs have various benefits for society and the world’s economy at large.  Also, NFTs are improving and becoming energy-efficient and eco-friendly day by day. The NFT marketplaces are searching for other options and are working to improve the industry.

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