How NFTs Harm The Environment? Is Future In Danger?

NFTs have been at the urge of being popular for the past few years. It has various benefits which you must be familiar with. But, do you know it is somehow harming the environment? No? Then you must read this post on how NFTs harm the environment till last. 

NFTs, the Non-Fungible Tokens are known for buying and selling ownership of digital assets and items but cryptocurrency’s consumption of energy and harmful impacts on our environment is something to worry about these days. Yes, NFTs are somehow becoming problematic to the environment!

The pandemic has made people aware of the digital world and hence the use of digital products such as NFTs is something they are addicted to! But don’t neglect the harm NFTs are providing to the environment! 

Confused? Don’t be. You will get clarity shortly. So, here is a post for you that will tell you how NFTs harm the environment. But first, let us discuss what NFTs are for those who are new to this topic.

What Are NFTs?

What are NFTs?

Non-Fungible Tokens(NFTs) are the unique units of data in digital form and are stored on the blockchains. NFTs are anything digital like paintings, music, art, or even videos. Fungible items can be replaced like you can do trading of one bitcoin for another. But it is not the case with NFTs as NFTs cannot be replaced or interchanged for another. 

So, NFTs can be made from anything that holds some value and can be stored in a digital manner. The market for NFTs has been increasing for a couple of years and is considered to go up even more in the near future.

Also Read: How To Mint An NFT And Things You Need To Consider While Minting NFTs!

Working Of NFTs

NFTs make use of Blockchain technology for certifying the ownership of an asset. NFTs somehow work differently in comparison to cryptocurrencies. There is the use of the Ethereum blockchain for transferring ownership. 

When a person buy an NFT, Ether is sent to the owner or the NFT marketplace that is supporting this transaction and in return, NFT is received by him in his wallet. Some part of the payment is deducted as ‘Gas Fees’ or ‘Service Charges’. This fee goes to the owner of a network of computers that have been used in confirmation of the transaction in a blockchain.

We all know that everything has good and bad sides and the same is the case with NFTs. Let us see what is the effect of NFTs on the environment or clearly say, how NFTs harm the environment.

How NFTs Harm The Environment?


Just like cryptocurrencies, NFTs also have a harmful trait and that is using tons of energy. How? This is how NFTs harm the environment by using a ton of energy. 

NFTs make use of the Ethereum blockchain and it uses the proof of work system for the confirmation of each new block. There is a race between the computers on the network to solve a complicated problem. The computer that solves the problem first has the right of confirming the block and can collect the gas fees and reward-related with every transaction in that block.

With the rise in the price of Ether and increase in gas fees, there is an increase in the value of solving the problem or puzzles through proof of work systems. Hence, the miners are usually incentivized for investing in cheaper electricity for maximizing profits. A high amount of energy is used from power grids. This energy may come out from sources emitting greenhouse gasses or are otherwise harmful to the environment, it would have a negative impact on the environment.

As we have got to know how NFTs harm the environment and negatively affect the environment, there must be a solution to deal with this problem. Let us find out if there is some solution to this and can NFTs be sustainable.  

Also read, How To Buy Metaverse Coins In Three Simple Steps?

Can NFTs Be Environment Friendly?

How NFTs Harm The Environment?

Now as it is clear that NFTs affect the environment tremendously, it is time to discuss how NFTs can be environment friendly. Here are a few ways through which NFTs can be made more sustainable:

1. Proof Of Stake

We are well aware that NFTs are operating on Ethereum and it is a proof of work blockchain. NFTs can move towards proof of stake rather than proof of work for securing the blockchain and verification of the transactions. Proof of stake helps in better efficiency of energy with low entry barriers. This will help in making NFTs sustainable and environment-friendly.

2. Second Layer

For making NFTs more sustainable, a second layer can be used on top of the blockchain. With the use of the second layer, transactions can be made outside the blockchain, and then they can be batch-processed together in one transaction on a blockchain. This can help in making NFTs environment-friendly.

There are few blockchains that are making use of proof of stake and supporting NFTs. It is important for the NFT industry to reduce the hefty impact on the environment and make NFTs more sustainable and environment-friendly.

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Thinking of investing in NFTs? But, worried about the harsh impact on the environment due to purchasing or selling on the blockchain? Don’t fret! You can easily find NFTs that make use of proof of stake blockchain. But don’t forget to do research before investing as NFTs are volatile. 

Though NFTs have an impact on the environment, they may not be as big as that cryptos. Hope that you have got to know how NFTs harm the environment and it was an informative post for you. 

Did you like the post? Yes, then why are you waiting! Share it with your friends. Also, if you have any doubt left behind, reach out to us in the comment section below. We would love to clear your doubts.

Frequently Asked Questions

Q. How Does Cryptocurrency Affect The Environment?

Cryptos make use of the electricity required for the mining process to create digital coins and impact the environment. Though electricity may seem to be a clean source in many countries fossil fuels are burnt for generating it, producing carbon, and affecting the environment. 

Q. Is Solana Bad For The Environment?

No, it is environmentally efficient. There is the use of less energy in the activities on Solana. 

Q. How Will NFTs Change The World?

It is changing the way of transmitting information and communicating with others. It is a good way of keeping anything personal.

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