Binance Smart Chain Has Compelling Reasons to be the Leading NFT Blockchain

NFTs, the environment, and how the Binance Smart Chain Network hopes to solve the issue at hand.

By
John Tunney
on
June 1, 2021
Category:
BSC News

NFTs: A Growing Divide 

As NFTs have grown in popularity, there has consequently been a growing divide between fans of NFTs and proponents who believe NFTs are killing the environment and should be stopped. So what exactly is an NFT? 

Non-fungible tokens (NFTs) can be thought of as a crypto-collectible. NFTs can not be divided, maintain uniqueness, and characterize scarcity associated with cryptocurrencies, which thus drives up their value. NFTs accomplish this through identifying unique coding recorded in their smart contracts. Most NFTs are run on the Ethereum network.

The issue at hand, however, is the large-scale environmental impact that many have attributed to the creation of NFTs, as minting the digital asset requires quite a bit of energy. What’s important to keep in mind is the energy required to create NFTs can come from renewable or nonrenewable energy sources. 


The Carbon Footprint

The carbon footprint for NFTs is estimated to be around 22.4kg CO2 to 48kg C02. A single NFT transaction includes creating, selling or transferring, as each transaction creates CO2. To put in perspective, mailing hand made art costs around 2.3 kg CO2. 

Some artists are now avoiding NFTs because of the high carbon footprint that's created with each transaction. Yet beef / red meat  carries a carbon footprint 10 times more than that of chicken. Should you now avoid eating beef? Maybe, but as the proud environmentalist chomps down on their steak dinner, explaining the environmental hazards of NFTs, one should keep in mind that the energy to create NFTs can be done using clean, renewable energy. 

A Cambridge University study claimed that 39% of all NFTs made on the Ethereum network run on renewable energy sources, and this percentage with time should begin to increase. 


Binance Smart Chain to the Rescue

The carbon footprint for NFTs is a serious consideration for any artist looking to digitally create and publish their work. However, the Binance Smart Chain network looks to solve the problem. The Binance Smart Chain protocol is a strong option for NFTs to migrate to. 

The Binance Smart Chain is less expensive than Ethereum and would look to cut down the environmental impact. The BSC network has lower fees and much faster transaction times. This is due to a more efficient but less decentralized Proof of Stake-Authority model.

The growing popularity of NFTs have raised concerns over sustainability and environmental impacts of the crypto space. However, crypto miners are making their way to sustainable methods to mine crypto currencies while protocols like Etheruem are looking to implement software to cut down the high transaction fees and energy consumption. 

What’s important to keep in mind is everyone in the crypto space is looking for ways to create a sustainable solution. Developers and industry leaders are going to extreme lengths to establish systems that would support crypto and the environment. Over time, the energy consumption of NFTs should begin to heavily rely on clean energy protocols, regardless of which protocol they’re run on. 


More on NFTs

An NFT is a digital asset which represents real-world objects like art, music, in-game items and videos. They are bought, sold and traded online, typically with cryptocurrency. NFTs have gained notoriety because they are becoming an increasingly popular way to buy and sell digital artwork. NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. 

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

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