Are NFTs Eco-Friendly?

There a lot of ongoing conversations regarding the ecological impact of the NFTs space. Just how eco-friendly are Digital Collectible?

Erik W avatar
Written by Erik W
Updated over a week ago

Are NFTs eco-friendly? We’re glad you asked!

There’s certainly a lot of conversations occurring in regards to just how eco-friendly the NFT space may be, so let’s take a look at two potential environmental impacts.


Every digital transaction in the world uses electricity, so are NFTs using more than any other consumer or company and how can they do more to become more eco-friendly?

Servers are needed to constantly update the blockchain that is used for NFT trading and this electricity use per year does require resources. While energy use is an important question, there are significant movements to create a more eco-friendly way of creating, buying and selling NFTs. Some companies are turning oil waste into eco-friendly energy to be used for those servers. This service decomposes the waste under pressure which results in electricity. In addition, there are innovations to technology to make the process of mining data more eco friendly. Companies are also finding places to put their server plants that make best use of renewable resources in order to create a more carbon neutral system. Another option that companies are potentially moving towards is using an alternative to “proof of work”, instead using “proof of stake” that can be just as secure but use less electricity consumption.

Material Waste

The process of creating digital collectibles and art can inherently lead to less material waste. People are creating without using other resources – no paper, paint, brushes or canvases. Most often, there is no cement, marble, metal or other mediums required. This art is created digitally thereby creating significantly less physical waste that might end up in a rubbish heap or polluting the oceans.

Crypto currencies and NFTs are where the future lies. Technology is moving at warp speed and while it might take some time to catch up to where we need to be for the future, it is clear that most of those working in these areas are determined to make the changes needed in order to continue on a path towards being environmentally friendly. From a business and social perspective, the motivation is there to create a more sustainable system as we move more and more into a digital space.

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