Is Minting Crypto Hurting The Environment?
If yes, how is that being solved? if not, how do we address the misconception?
— “Minting” means making your token available for purchase on the blockchain as defined by ARTESSERE, a fractional ownership company. When a new bitcoin is generated, it must be counted in the mining process. The Blockchain records all bitcoin transactions. While NFTs are not harmful to the environment, their production method directly impacts our climate.
— NFTs can be created in two ways: through Proof of Work (PoW) and Proof of Stake (PoS) as explained in ‘The EconomicTimes’. Proof-of-work mining of a single NFT consumes as much electricity as a typical American household uses over nearly nine days. To generate NFTs, proof-of-stake can be used, which does not require excessive electricity and does not harm the environment. Proof-of-work (PoW) mining consumes 120 terawatt-hours of electricity annually. The proof of sake, on the other hand, does not necessitate the extensive use of computing hardware and thus consumes less energy. As claimed by Robeco, the average bitcoin transaction is comparable to 330,000 credit card transactions. Fossil fuels succeed in being the predominant energy source of most countries that mine cryptocurrency.
— Your next question may be, why do people use proof of work more than proof of stake?
— Using a proof of stake does have its drawbacks, the most significant of which is the high
initial investment required. According to the size of the network, you must purchase a certain amount in the cryptocurrency’s native currency to become a validator. PoS is also not as secure as PoW when it comes to security. Also, when buying a PoS, some cryptocurrencies require staked coins to be locked up for a minimum amount of time. As a result, proof of work is most people’s preferred method for generating NFTs.
— Although proof of work generates more significant greenhouse gas emissions, it’s more trustworthy. It calls for a competitive validation method to validate transactions, which is different from proof of stake, which uses miners who are chosen at random to confirm new blocks and add them to the blockchain. It would be preferable to use proof-of-stake so that the environmental damage blockchain causes can be mitigated, as explained by “coindesk.”. Companies are shifting their operations to point-of-sale systems to reduce their carbon footprints while still producing NFTs.