Tuesday, March 30, 2021 4:34:53 AM
Non-fungible tokens (NFTs) have risen in popularity in recent weeks as a way to sell artwork using blockchains, the technology behind cryptocurrencies like bitcoin. Now, two of the developers behind the NFTs at the root of the current digital art boom have warned that they are is damaging to the environment and that a change in direction is needed.
An NFT is a cryptographic claim of ownership, similar to the deed to a house, that is encoded into a blockchain, meaning that it cannot be altered.
William Entriken, one of the authors of the NFT protocol for Ethereum, a popular alternative to bitcoin, says NFTs aren’t inherently bad, but that rapacious speculation is pushing them and cryptocurrencies down a destructive path as their carbon footprints rise.
Most cryptocurrencies rely on “proof of work” to secure their networks, meaning that computers must perform huge numbers of calculations to “mine” new currency and verify transactions on the blockchain. This uses large amounts of electricity – bitcoin’s annual power consumption is comparable to that of Finland.[/b]
Investing money into cryptocurrencies – either through simple speculation or by purchasing expensive artwork – boosts demand and therefore prices, says Entriken. That makes mining that cryptocurrency more profitable, but also more difficult, increasing carbon emissions.
Entriken contrasts cryptocurrencies with carbon offsetting, in which people pay to have carbon emissions removed from the atmosphere. “Bitcoin is the opposite of that. When you purchase bitcoin you’re purchasing carbon creation credits,” says Entriken. “When you purchase the $50,000 [of bitcoin] somebody else is directly putting that much carbon into the atmosphere. Ethereum is the same.”
He has called for Ethereum to switch from a proof of work (PoW) approach to a proof of stake (PoS) approach, which would remove the need for intense calculations by allowing the owners of existing coins to control the network, rather than the owners of the computing power. It is estimated this could cut the total energy demands of Ethereum by 99 per cent. “You have to switch to proof of stake. Proof of work should be illegal,” says Entriken.
Ethereum developers have been working to make the switch for some time, but no single person or organization is in charge of the open source project, meaning progress has been sporadic, says Entriken. “It’s always been three months away. These things don’t just happen immediately.”
“The carbon footprint of proof of work blockchains deserves all of the criticism it gets and more,” says Dieter Shirley, who also worked on the Ethereum NFT protocol. “But NFTs are not the problem here. Now that we have electric cars, we can say that cars aren’t the problem, gasoline is the problem. Same with proof of stake: now that we have PoS blockchains, we can say that NFTs aren’t the problem, PoW chains are.”
https://www.newscientist.com/article/2272687-nft-developers-say-cryptocurrencies-must-tackle-their-carbon-emissions/
Recent LINKUSD News
- Ether Surges Post SEC Investigation Closure, DJT Token Creator Reward Sparks Revelations, and More in Crypto • IH Market News • 06/19/2024 12:27:24 PM
- Bitcoin rises up to 3%, Ripple Unveils RLUSD Stablecoin, and More in Crypto • IH Market News • 06/12/2024 07:35:31 PM
- Scalpers Rejoice! Top Analyst Predicts Chainlink (LINK) Short-Term Surge • NEWSBTC • 06/09/2024 11:30:21 AM
- Chainlink Chain Reaction: Analyst Sets Sights On $33 Target • NEWSBTC • 06/08/2024 04:02:44 AM
- Chainlink Is Not Done: Analyst Predicts 300% Rise Against Bitcoin • NEWSBTC • 06/01/2024 11:30:21 PM
- BlackRock’s IBIT Surges as Top Bitcoin ETF, Bitfarms Rejects Riot Platforms Offer, and More Crypto News • IH Market News • 05/29/2024 07:37:53 PM
- Chainlink On Fire: Price Nears $18, Profit Ratio Blazes To 2022 Levels • NEWSBTC • 05/26/2024 09:45:55 AM
- Trading of Ether ETFs Delayed, LINK Performs Well, and More Crypto News • IH Market News • 05/24/2024 03:54:39 PM
- Crypto Analyst Sounds Warning Alarm For Potential 50-60% Crash In Chainlink Price, Here’s Why • NEWSBTC • 05/20/2024 06:00:08 PM
- Bitcoin Hits $67K, US Faces Crucial Vote on Crypto Regulation, and More • IH Market News • 05/17/2024 06:00:54 PM
- Chainlink Becomes Crypto Winner With 21% Rally: What’s Driving This? • NEWSBTC • 05/17/2024 06:00:35 PM
- Major Success For Chainlink: US Banks’ Pilot Program Propels LINK Price Up 6%, Details • NEWSBTC • 05/17/2024 01:00:23 AM
- Chainlink (LINK) Forms Bullish Pattern That Led To 50% Rally On Average • NEWSBTC • 04/19/2024 01:00:53 AM
- LINK Price Eyes Recovery If It’s Able to Hold One Crucial Level • NEWSBTC • 04/18/2024 04:40:01 AM
- Chainlink (LINK) Soars 9%: Crypto Analyst Predicts Next Big Target • NEWSBTC • 03/26/2024 11:00:10 PM
- LINK Price Regains Strength, Why Chainlink Could Surge Over 10% • NEWSBTC • 03/11/2024 04:58:43 AM
- Analyst Forecasts $40 Target For Chainlink (LINK) • NEWSBTC • 02/24/2024 09:20:52 AM
- Chainlink Open Interest Sitting At Record Levels, What This Means For Price • NEWSBTC • 02/23/2024 03:00:05 PM
- Chainlink Bulls Brace For Explosive Growth Following $216 Million Whale Accumulation • NEWSBTC • 02/18/2024 09:30:21 AM
- Crypto: Chainlink and Telefonica Forge Alliance, Klaytn-Finschia Merger, and Latest Updates • IH Market News • 02/15/2024 05:40:20 PM
- Chainlink Appetite: Whale Scoops Up $84 Million Worth Of LINK, And Counting – Details • NEWSBTC • 02/11/2024 07:00:41 PM
- Chainlink Breeds New Whales As $49.9 Million Accumulation Spree Cause Prices To Surge • NEWSBTC • 02/08/2024 03:00:55 PM
- Crypto: SEC Postpones Ether ETF Decision, Hut 8 Leadership Transition, and Latest News • IH Market News • 02/07/2024 07:17:02 PM
- Whales Ramp Up Chainlink (LINK) Accumulation Amid Explosive Price Surge • ZyCrypto • 02/07/2024 05:51:54 PM
- Dogecoin Trounced: Chainlink’s 34% Jump Kicks DOGE Out Of Top 10 List • NEWSBTC • 02/06/2024 12:00:02 AM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM