According to Cornell Engineering researchers, the exponential growth of transactions involving non-fungible tokens (NFTs) could be supported by unused hydroelectric, solar, and wind power in the United States.
Fengqi You, Roxanne E., and Michael J. Zak, Teacher in Energy Frameworks Design at Cornell Design, are the authors of “Environment Concerns and the Fate of Non-Fungible Tokens: Leveraging the Ethereum Merge’s Environmental Benefits,” which appeared in Proceedings of the National Academy of Sciences on July 10. Apoorv Lal, a graduate student in chemical and biomolecular engineering who is a member of the You Research Group, is the co-author of You.
The processing of NFT transactions, which has increased fourfold in the past five years, used a lot of energy in the past. However, a recent change to an algorithm that uses less energy has made the process more sustainable. However, the researchers stated that the anticipated surge in annual NFT activity will largely offset those savings.
“It’s the same idea as a car sitting in someone’s garage, If it is not being driven, it could be loaned to someone for carsharing. In our situation, underutilized wind, solar, and hydro power sources could be put to excellent use.”
Fengqi You,
Overabundance environmentally friendly power, because of the absence of capacity ability, allows framework administrators to reduce creation. Your idea would make good use of that untapped potential for energy production.
You stated, “It’s the same concept as a car sitting in someone’s garage.” They could lend it to someone for carsharing if it is not being driven. In our case, the hydro, wind, and solar power sources that aren’t being used could be put to good use.”
He stated, “Of course, this would be up to the industry and policymakers,” but “technically, we show it’s very feasible because these power sources are already there.”
Their main finding was that existing power sources could partially power the increased NFT processing activity if they are underutilized or not used enough. A 15 percent utilization of wind and solar energy that cannot currently be used or stored from sources in Texas, or fifty megawatts of potential hydropower from existing U.S. dams that are not currently used to generate power, could be used to power an exponential increase in NFT transactions.
NFT transactions are one example of blockchain technology that provides a high level of security in a number of applications. However, the energy required to process each transaction is a problem in a world that is warming.
“People only cared about the usefulness of these applications in the beginning,” Lal stated. However, at that point they began to understand the energy and environmental influences, on the grounds that the core of this large number of uses is the use of huge measures of energy.”
With practically no endeavors to make NFT exchange handling more economical, the creators composed, their yearly emanations will arrive at a likeness of 0.37 megatons of carbon dioxide—nnear the CO2 discharges from 1 million single-trip trips for a traveler from New York to London.
In September 2022, the Ethereum blockchain switched from an energy-intensive proof of work (PoW) algorithm to a proof of stake (PoS) consensus mechanism, which requires less computing power, in response to the call for more sustainable trading. Energy utilization definitely diminished following the switch, known as the Ethereum Consolidation.
In any case, according to the creators, a dramatic ascent in recorded NFT exchanges would mean more validators working on the organization. The energy consumed by an exponential increase in NFT transactions could be equivalent to that of 100,000 households in the United States by the end of this decade.
Therefore, even though individual NFT transactions use significantly less energy, the increased number of validators operating on grids dominated by fossil fuels will result in an additional rise in the associated carbon debt.
You stated that “the carbon produced by NFT transactions may be approximately equivalent to that produced in one year by a 600-megawatt coal-fired power plant” by the end of this decade.
The viability of two hydroelectric energy carriers, green ammonia and green hydrogen (more energy-dense than hydrogen), was evaluated by the authors. They noted that their cost savings are influenced by multiple factors, such as transportation distances and the degree to which renewable energy sources are utilized.
Retrofitting these current power sources could be testing, the creators said, but would in any case be great for energy transporters and the planet.
“NFT handling is very eager for power,” You said, “so this ends up being an effective method for exploiting these diminishings.”
You are co-director of the Cornell University AI for Science Institute and a senior faculty fellow at the Cornell Atkinson Center for Sustainability.
More information: Apoorv Lal et al, Climate concerns and the future of nonfungible tokens: Leveraging environmental benefits of the Ethereum Merge, Proceedings of the National Academy of Sciences (2023). DOI: 10.1073/pnas.2303109120
