NFTs are a reasonably new, somewhat controversial and potentially very profitable aspect of blockchain technology. The basic premise is that NFTs are unique digital assets with specific properties or attributes - like a house mortgage or barrel of oil. But the question arises whether the sudden surge in their trading indicates the dawn of something new and exciting or just a speculative bubble? My discussions with those around me and in digital spaces have led me to the conclusion that the NFT trend has been bothering tech-savvy and environmentalists equally.
Earlier, when NFTs were ignored as something unfamiliar that wouldn't be of any practical use, blockchain experts and environmentalists from all over the world were pondering - is this the future of our digital world? Since 2017, when CryptoKitties was first introduced, the NFT sales have surpassed $2.4 billion by the end of 2021. Many factors have been responsible for the boom in NFTs sales, but the one that has brought in a collective evolution is Metaverse. It allows users to trade NFTs and create virtual assets similar to the tangible assets in our world.
The growing prominence of such platforms has been quite alarming. Though not everyone has followed this path, it has significantly impacted everyone. To understand how, let's understand the process behind NFT acquisition.
Why do even people buy these digital assets? While the purchase of the NFT provides you with its ownership, many of them also follow a popular theme: philanthropy. Many organization work behind a goal that leverages NFT sales for charity and help in raising funds for social causes. Also, tokenization and gaming, along with utilities, make NFTs look more popular and lucrative. These digital assets are then traded securely through cryptocurrencies.
You will be surprised to know that each NFT is responsible for millions of tons of planet-heating carbon dioxide emissions generated by crypto-mining. The process of mining cryptocurrencies such as Bitcoin and Ethereum is also very energy-intensive. The trade has now popularly known as the ecological nightmare pyramid scheme. However, most of the crypto-transaction happens outside the NFT market, but that doesn't make it any less real.
But the question remains, when is the appropriate time to express our concerns without attacking the technological evolution? The NFT trend will not subside in 2022 but will leave a lasting impact on the world.
However, it's essential to think about whether this technology will continue in the future or not? Over-saturation of the NFT market and the potential failing of the Metaverse-based platforms are concerns that have yet to be answered. It is a race against time to understand the importance of this technology and its future implications.
Ankita Bansode is a freshman studying political science pre-law and economics at Ohio University. Please note that the views and opinions of the columnists do not reflect those of The Post. What are your thoughts? Tell Ankita by emailing her at ab890621@ohio.edu.
