As Ethereum nears The Merge, the cryptocurrency consensus mechanism will shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS) (PoS). This enhancement might potentially be the solution to non-fungible-token (NFT) energy difficulties. Simply said, the Ethereum network is designed to be 99 percent less energy-intensive, transferring power away from crypto miners and toward a truly decentralized process in which nobody controls the Ethereum network.
Because of the PoW method, crypto mining requires a lot of hash power (computational power) and resources. It operates by having all nodes (devices) solve a cryptographic challenge. Miners complete this challenge, and the first to solve it wins. This has resulted in a lot of competitiveness and situations.
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The more your hash power, the easier it is to mine a coin. To boost their chances of winning, even more, miners form mining pools in which they pool their hashing power and divide the rewards fairly, leading miners to consume massive quantities of electricity.
It should be highlighted that Ethereum is the only token that provided the possibility of viewing blockchain as more than just a means of transferring money. NFTs are a prominent invention that was designed to construct use cases. According to DappRadar stats, minting (making) a digital asset is popular on the Ethereum network, and it is a logical choice for 95% of NFT purchasers.
This is because Ethereum-based NFTs are very secure and have a large potential market, which means they are offered at a considerably higher price. The Ethereum network underpins popular NFT marketplaces like as OpenSea, Raible, and Nifty gateway.
Minting NFTs using Ethereum demands a lot of energy. To do so, we must first comprehend what occurs behind the scenes when an NFT is issued on the Ethereum blockchain. So, if you elect to mint an NFT, the transaction must now be confirmed, which is done by validators, also known as ‘crypto miners.’ Consider that hundreds of thousands of transactions are validated per minute on Ethereum, which necessitates the use of thousands of computers working in a pool to verify each transaction, making the NFT minting process energy-heavy.
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According to NFT Club’s study, adding any NFT to a blockchain consumes around 83 kg of CO2. This is not it. Once the NFT is mined, the carbon cost of each piece of NFT persists. Every NFT bid costs 23 kg of CO2, every NFT sale costs 51 kg of CO2, and every NFT transfer costs 30 kg of CO2.
However, if Ethereum moves from PoW to PoS, all of this might be lost. Rather than fighting for a block, PoS employs a procedure in which one miner is picked at random. As a result, PoS is a more efficient approach. Meanwhile, Ethereum-based NFTs based on PoS will not only be more ecologically friendly but also less expensive.