Yay or Nay: First Carbon Neutral Blockchain

By diaperfinancingfund | CryptoSensei | 18 Jun 2022


You know that NFTs have become a lucrative industry when your country (Singapore for the uninitiated) decides to charge income taxes on individuals who derive their income from NFT transactions and/or trading. Suffice it to say that many people have gravitated towards creating their original brand of NFTs as they see it as a viable means to make big bucks. Have you heard of Ghozali Everyday? Probably this username doesn’t ring a bell. But what if I tell you that Ghozali is a NFT creator who became an Internet sensation this year for successfully selling his NFT selfies for more than US$1 million. Yes, your incredulity is as huge as mine.

 

Before we flock to make our own NFTs, let’s consider the environmental costs associated with NFT minting. According to a January 2022 article in Medium, the transaction costs of NFTs over OpenSea amount to the carbon dioxide emissions produced by 20,428 cars over a period of 4 years from 2018 to 2021. Climate change is our children’s and grandchildren’s crisis to solve, so if we can do anything to mitigate the adverse effects of global warming, we should do so.

 

The developers of the World Asset eXchange (WAX) must be thinking along the same lines as they proclaim themselves to be the world’s first carbon-neutral blockchain. (https://on.wax.io/wax-io/) Certified by ClimateCare, they harness an unique mechanism called the Delegated Proof of Stake consensus algorithm (DPoS). Under this novel system, investors who possess WAX holders vote for 21 energy-efficient guilds to complete transactions. This eliminates the need for supercomputers to compete with one another, which will incur a sizeable carbon footprint in the process. I thought it was an inspired idea to incorporate collaboration into the processes of the blockchain network so that individuals can be primed to think win-win and consider how they can pool their efforts together to mint their NFTs projects.

 

Sincd the WAX blockchain is more environmentally friendly than the Ethereum blockchain, fervent fans of NFTs and GameFi applications can turn to this as a tool to support their creative work and not worry about harming the environment in the process. It seems that certain established brands like Topps, Capcom, Atari, Funko, and Lionsgate have already launched their NFTs on the WAX blockchain.

 

I was heartened to note that minting NFTs on the WAX blockchain would not induce any burden on the environment. I was even more heartened to read that WAX did not rest on its laurels and introduced Carbon Offset vIRL (virtual In Real Life) NFTs. vIRL NFTs may sound complicated but they are essentially NFTs that are linked with actual consumer products. What’s distinctive about these vIRL NFTs is that they not only let consumers redeem their NFTs for the physical equivalents, but facilitate towards the planting of tree samplings because that’s what the revenue generated from this platform will be channeled towards. As much as I want to advocate minimalism, I recognise that conspicuous consumption is a contemporary norm that is difficult to be eradicated. While we advocate people to spend more on experiences than on possessions, I think it’s also realistic for us to tie retail therapy with reforestation projects so that we replenish back what we take from the earth at least.

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diaperfinancingfund
diaperfinancingfund

budding investor


CryptoSensei
CryptoSensei

chronicles of an English teacher

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