Non-fungible tokens use huge amounts of energy, leading to high carbon emissions.
NFTs as digital art pieces have become enormously popular, with sales skyrocketing in recent months. However, crypto artworks have a huge environmental impact because of the way they are created and sold. Most creators use Ethereum, a blockchain technology that uses a model called proof-of-work to create digital artworks. Ethereum involves an energy-intensive function called mining, in which high-powered computers solve complex puzzles. The process leads to higher energy consumption that leads to greenhouse gas emissions.
Estimates tell us that NFT transactions are likely to have a carbon footprint more than 14 times higher than that of mailing an art print. However, ascertaining the carbon footprint of mining an NFT is a complex process. In the current state, Ethereum consumes more electricity than many countries. When someone buys or sells an NFT using Ethereum, this leads to increased gas emissions.