NFTs or non-fungible tokens came about as a result of the crypto revolution. Like cryptocurrencies, NFTs are powered by blockchain technology. But the difference is that these tokens are not interchangeable with one another.
For example, 1 Bitcoin token has the same value as another Bitcoin token. Where no 2 NFTs will ever have the same value because they are entirely unique.
In the past, anyone could just take any image on the internet and pass it off as their own, NFTs now make it possible to trace the ownership of the said image. This is because of NFTs store information like ownership and rights on the blockchain. All of which make it possible for digital artists to monetize their creations.
As these tokens only exist in the digital space, you will need to make use of specialized software to store them. These are known as NFT wallet apps which store your portfolio online for easy access.
But do keep in mind that not all apps are similar. In fact, the best NFT wallet apps can store both cryptocurrencies and NFTs, thus giving you easy access to them. You can check them out here: blog.tezro.com/best-nft-wallet-apps/
Before you jump in with both feet, do keep the following in mind
- Cryptocurrencies and NFTs are both highly volatile assets. They are traded in an unregulated and decentralized environment. So, always be prepared to face extreme volatility and only invest what you’re prepared to lose.
- Theft of cryptocurrencies and NFTs is rampant. Besides being extremely volatile, digital assets can be easily stolen with minimal effort. As a result, hot wallets are a favorite target for cybercriminals and hackers. If you have an especially large portfolio, consider putting your assets in cold storage.
How Much Electricity Do NFTs Use?
Most NFTs are minted on the Ethereum blockchain which consumes about 48 kWh per transaction. This is due to the proof of work algorithm used to validate and maintain transactions on the blockchain. And when you consider the fact that there are thousands of transactions performed per day, the true environmental cost of NFTs is obvious.
Despite the benefits that they bring to the table, digital assets require a large amount of electricity to be minted. This is due to the complex mathematical equations required to validate and maintain the blockchain which calls for massive computing power. Thus, we have seen growing calls amongst concerned parties that cryptos and digital assets be more environmentally conscious.
Environmentally Friendly and Sustainable NFT compatible Blockchains
So with that in mind, I’ve put together a list of the top 3 green blockchains that support NFTs and consume significantly less amounts of electricity.
The Flow blockchain is specially designed to support the usage of NFTs. Developed by Dapper Labs, the company behind the NBA Top Shot platform, Flow uses a proof of stake (POS) algorithm to verify transactions. This allows the blockchain to use significantly less energy compared to Ethereum.
The Flow blockchain powers NBA Top Shot, but is available for use by other developers. Currently, there is an active community minting NFTs on the Flow blockchain. From sports collectibles to digital art, there’s something for everyone.
Solana is a blockchain built to replicate many of the capabilities found on the Ethereum blockchain. These include support for NFTs, decentralized applications (dApps), and the ability to use smart contracts. Because of this, NFTs hosted on Solana have slowly but steadily achieved popularity.
It uses a combination of proof of stake and proof of history algorithms to process transactions. All of which allows the blockchain to solve extremely complex equations with minimal processing power. And this is something which allows Solana to be much more energy efficient than Ethereum.
Tezos first achieved popularity back in 2021 when NFT enthusiasts began switching over to the blockchain. This was because of rising concerns regarding the sustainability of NFTs and cryptocurrencies. It uses a proof of stake mechanism to replicate transactions and has the capability to govern itself. A feature which allows the blockchain to literally evolve and upgrade with time.
The low fees and minimal energy consumption has made Tezos a popular blockchain with many enthusiasts. You can find its collectibles on Objkt, Kalamint, and Rarible just to name a few. This is why it should come as no surprise to find Tezos topping the lists of popular NFT blockchains from time to time.
NFTs are some of the most exciting innovations to come about in recent times. Its ability to make digital ownership possible is probably one of the reasons why NFTs are highly favored investments.
So, as with all digital assets, always be sure to practice caution when investing in them.