For some weeks now, the crypto art scene has exploded with talks about the impact of cryptocurrency and NFTs on the planet. Frightening figures measured in metric tonnes, illustrated using various countries’ energetic consumption and miles traveled by car, have seeped their way into the conversation surrounding the NFT craze.

And it’s true: cryptocurrencies are, at the level we currently use them, a system with an enormous carbon footprint.

On their own, cryptocurrencies don’t emit any more greenhouse gases than any other online activity. Rather, the pollution from crypto derives from the proof-of-work infrastructure designed by Satoshi Nakamoto. Now the foundation for most cryptocurrencies including Bitcoin and Ethereum, it is powered by crypto mining rigs – large computers whose purpose is authenticating crypto transactions.

These machines, though profitable, have the downsides of being extremely energy-hungry and generating a lot of heat. Currently, the Bitcoin network consumes as much electricity annually as an average American household would in 9.4 million years. For the Ethereum network, which hosts the majority of the NFT trade, this figure is closer to 3.4 million years.

NFTs and Climate Change

Does this mean the crypto art market is single-handedly worsening the climate emergency? Not really. Eco-conscious crypto artists who chose this platform as a way to circumvent wasteful ways of creating art can still mint their creations on the blockchain without worrying about greenhouse gas emissions. 

Although the crypto art market has boomed recently, it still constitutes only a minute part of all Ethereum transactions. As of April 2021, on average 1.4 million daily Ethereum transactions – just under the current annual number of NFT sales. That’s less than a percent, meaning it’s also a minuscule fraction of the energy consumed by the mining of Ether.

These numbers are confirmed when looking at the size of the currency from a financial perspective. Out of Ethereum’s $278.5 billion market cap, only about $556 million is invested into crypto art – or just under 0.02 percent.

The use of unique contracts to legitimate artworks is very recent. However, the Ethereum framework has been in place since 2015. Up until 2020, the millions of transactions it processed simply weren’t related to the trade of art. The same goes for Bitcoin, which is barely used to mint NFTs: the interactions on the blockchain have almost nothing to do with crypto art and continue to increase even after its arrival.

A More Eco-Friendly Crypto Art Scene?

Although the impact of proof-of-work cryptocurrencies on the planet comes mainly from their growing adoption around the world, the raw numbers still do expose a flaw in the crypto art ecosystem. Grimes’ $6 million NFT collection recently came under fire for being responsible for over 65,000 kg of CO2. Far from inviting creators to the digital space, an environmental impact larger than that of traditional art could cause more apprehension to crypto platforms.

The development of Ethereum 2.0 has been cited as a remedy to this issue, introducing a more sustainable proof-of-stake model. But it’s expected to be complete only in 2022 – and in the meantime, many have started building and launching their own eco-friendly currencies and art platforms, including the GreentNFTs initiative which has raised over $50,000 to fund bounties for more ecologically friendly NFT solutions.

Proof-of-stake-based blockchains have many advantages apart from their minimal effects on climate change. These frameworks don’t validate transactions by building blocks; they eliminate the need for crypto mining rigs entirely. Because of this, transactions can be verified in a matter of seconds rather than minutes, and they are fee-less, which could lower some of the barriers of entry some crypto artists face due to rapidly increasing gas fees.

But smaller currencies can also be less secure, and aren’t trusted as much. Some have an awkward user interface and don’t yet host large communities, making promotion a greater challenge for artists. Their smaller scale may also be unable to accommodate an influx of traffic the way larger blockchains can.

The exponential growth seen by crypto art hasn’t given enough time for the development of eco-friendly solutions. However, the early concern for environmentally conscious practices is a positive sign for the future of the movement. In voicing support for high standards of sustainability, crypto art supporters can drive it forward in a more sustainably mindful way.