NFT: Booming market of Virtual collectible leaves its Carbon footprints

Non-fungible tokens (NFTs) are digital certificates of authenticity that are attached to any form of digital art—this can be in any form, be it audio files, video clips, stickers, memes, tweets, and even this article that you’re reading, any form of digital art can make its creator a millionaire.

Introduced in 2017, NFT is one of a kind digital asset, which is part of the Ethereum blockchain and can be traded using Ether cryptocurrency. NFTs use a blockchain that records the ownership of the items, as individuals can have several copies of the art but the original and authentic ownership will be just one, this is what makes NFTs different from the rest. These records are then stored on computers across the internet, making them public and impossible to lose or destroy.

Unlike cryptocurrencies, which are fungible or can be split, NFT’s cannot be interchanged and are irreplaceable. Also, unlike any other traditional collectible, NFTs enable the creator to be paid some amount each time the collectible changes hands.

While many cyber enthusiasts believe that the NFT trend is only going to soar higher in the near future, others hurl brickbats at NFTs for their obvious lack of utility and for being an absolute environmental burden.

A single Ethereum transaction’s carbon footprint stands at 33.4kg CO2, which is as much as 74,000 VISA transactions, according to Digiconomist, a platform dedicated to exposing the unintended consequences of digital trends, typically from an economic perspective. Additionally, each time an NFT is minted and sold results in a further increase of the overall carbon footprint.

Image courtesy of (Image Courtesy: The Fordham Observer)

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