The environmental impact of human existence has been devastating and is reaching overwhelming levels. According to the Environmental Protection Agency (EPA), more than 40% of the total land area in the United States is either urbanized or developed in some way. The EPA also predicts that by 2060, more than 70% of the U.S. population will be living in major urban areas. With more people living in cities, more land is being used for urban development, agriculture, and other land uses, which can have devastating impacts on the environment. The National Fish Tank in Washington D.C. has a mission to educate people about the negative effect of over-urbanization on the environment. For example, the National Fish Tank is an interactive experience that allows
Saving the environment has never been easier than it is now, thanks to the innovative efforts of a growing number of companies who have found ways to do their part to preserve the planet. One such company is Oshen.io, a company that wants to motivate people to be more eco-friendly with virtual goods. Oshen.io sells items that are virtual, but can also be “grown” in your garden – you can collect them, trade them, sell them for profit, or use them to raise awareness of environmental issues.
Many articles have been written by environmentalists who are concerned about the drawbacks of NFTs and their impact on the environment. All these views depend mostly on the agenda you are promoting and the reward for writing articles. We recently looked at Elon Musk’s stance on bitcoin and Tesla. It’s like arguing about plastic and paper straws. Paper straws are better, but what is the environmental cost of making them? Paper straws can also harm animals and destroy the environment if thrown into the ocean, just like plastic straws. Paper straws are generally less harmful than plastic straws because they are much less durable and have to decompose (we hope).
The question is whether we are on the road to a better environmental outcome.
Bitcoin is used as an example to support this idea, but we can apply the same logic to the entire cryptocurrency landscape. Bitcoin versus the entire traditional banking system is a David and Goliath story, but we will use this comparison to illustrate the inaccuracies of different points of view. While the world tries to switch to clean, renewable energy, the only energy needed to mine bitcoins is electricity. Given Coom and Moore’s laws, bitcoin will have less impact on the environment over time. As technology advances, the efficiency gains of integrated circuits far exceed the efficiency of energy-hungry gold processing. Here is an excerpt from an article on Coindesk https://www.coindesk.com/microscope-conclusions-costs-bitcoin. As can be convincingly observed, the relative impact of the Bitcoin network is not even on the radar of the fiat and gold coin systems, with a very conservative relative environmental impact of just over 0.13% and a relative economic impact of just under 0.04%. Given Kumei’s law, we can assume that energy/GW will continue to halve every 18 months until 2048. The current industry best efficiency of 0.733 W/GW is expected to increase to 0.0000000873804 W/GW. For example, armchair scientists note that if bitcoin multiplies its current size and market value by millions over the next 30 years, its environmental impact will remain negligible compared to current systems. Given Moore’s Law, we can expect the $/GH to continue to decline by half every 18 months until 2020. Taking into account the emergence of decentralized renewables with zero emissions, we can expect tCO2/GH and perhaps even $/kWh to approach zero. Bitcoin has become more stable over time, while traditional systems continue to grow year after year.
Some Cambridge research
Cambridge researchers estimate that bitcoin accounts for about 0.5 percent of total global power consumption. While we agree that these amounts are ridiculous today, they are still half the amount consumed by non-operating devices in the United States. The amount of energy wasted in the US by unused appliances like phone chargers and microwaves could power the Bitcoin network for two years. Michelle Rauchs, a researcher at the Cambridge Centre for Alternative Finance, in an interview with CNBC Most NFTs use the Ethereum blockchain for their operations. Ethereum is currently operating in Proof of Work (it will move to Proof of Stake by the end of 2021). Proof-of-stake systems are less energy-consuming and use new and improved hardware, making the cryptographic space more efficient and cost-effective. Not only does the crypto space have advanced technology, but it is also the first to adapt to renewable energy sources, unlike banks and exchanges that tend to ramp up their use of fossil fuels.
Why is evidence of commitment better than evidence of work?
These models are called consensus mechanisms and are the current requirement for validating transactions on the blockchain without third party intervention. Bitcoin uses the proof-of-work model. While proof of work is a fantastic invention, it is inefficient and slow. Not only does it require a significant amount of energy, but it is also very limited in the number of transactions it can process simultaneously. Because of this inefficiency, many other consensus mechanisms have been created, one of the most popular being the evidence of commitment model. The Proof of Stake model was first developed in 2012 by two developers, Scott Nadal and Sonny King. At launch, the founders said bitcoin and its proof-of-work model required the equivalent of $150,000 in daily electricity costs. This number has increased significantly in recent years and reflects the fact that NMT has virtually no cost or environmental impact. How do you know that?
Comparing the environmental costs of physical and virtual money
With the infinite inflation built into fiat money, more and more physical money will have to be printed and minted every year unless we move to a fully digital transaction system. An article by Hass McCook https://www.coindesk.com/microscope-real-costs-dollar Coindesk Report: A very comprehensive sustainability assessment by Ahlers et al (2010) sought to quantify the environmental impact of US dollar banknotes made in Australia compared to polymer banknotes. The main environmental costs based on 2002 data are as follows (Ahlers et al., 2010):
- Water consumption in paper production: 1 million gallons per day = 1.4 billion gallons per year
- Water consumption during printing: 250,000 gallons/day = 0.35 billion gallons/year
- Ink and pulp waste = 6 million pounds = 2,720 tons
- Power consumption during printing : 97850 MWh electricity = 0.35 million GJ
- Electricity consumption for pulp production = same as for printing = 0.45 million GJ.
- Ink consumption = 3,540 tonnes
- More than 7100 tonnes of cotton
- More than 2,300 tonnes of flax
The entire crypto-currency market consumes about 5% of the world’s energy. While banks are trying to increase their energy needs at the expense of fossil fuels, the entire crypto space is advancing technologically and moving towards near-zero costs.
Reduced future adverse environmental impact
The issue is not whether cryptocurrencies, NFTs, etc. are good for the environment, but that by embracing them we are contributing to the transition to a better system that will have less negative impact on the environment in the future. All it takes for evil to prevail is for good people to do nothing. Edmund Burke, Irish philosopher and politician We’re only at the beginning of the NFT experiment – it’s day one – and the explosion of NFT in the blockchain landscape has at once created skeptics and die-hard believers in the category. Many people are still hesitant, do not understand the impact of NFEs on society or the environment and do not know whether they should participate. We all know that there is something wrong with the global monetary and financial system. We don’t know how to fix it. We also understand that some kind of digital currency will replace our money. Oshen.io is a marketplace where like-minded people who love nature and want to preserve and protect the environment can meet, share, exchange and commit to supporting the environment through donations. Oshen.io and the artists and athletes associated with the platform donate a percentage of all transactions made on the platform to organizations working to protect nature and preserve our natural habitat. Imagine an NFT marketplace with 1,000 top artists and athletes from around the world using their art to transform cryptocurrencies, NFT and blockchain.