Please note!

This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Do NFTs contribute to climate change?

Thursday, February 17, 2022

By Jacob Alabab-Moser

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YES

NFTs, or non-fungible tokens, which let users create digital "originals" of their items, are indirectly linked to increases in carbon dioxide emissions given their sale on cryptocurrency blockchains like Ethereum.

To verify an Ethereum transaction, cryptocurrency miners must solve a complex puzzle requiring energy-intensive computing. Ethereum emits nearly 54 megatons of CO2 annually. If it were a country, its carbon footprint would rank 55th of 209 nations listed by Worldometer.

NFTs constitute around 1% of Ethereum transactions. Still, the average NFT transaction has an estimated carbon footprint equivalent to more than a month’s worth of electricity for a person living in the EU.

Proposals to reduce the carbon footprint of NFTs, and cryptocurrency transactions generally, include carbon offsets, alternative verification methods that do not require energy-intensive puzzle-solving, and a layered blockchain that permits all but the final transaction among users to happen "off-chain."

This fact brief is responsive to conversations such as this one.

Sources

Digiconomist Ethereum Energy Consumption Index

Worldometer CO2 Emissions by Country

The Verge The climate controversy swirling around NFTs

ethereum.org Non-fungible tokens (NFT)

ABOUT THE CONTRIBUTOR

Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.