NFTs are a thing of beauty (sometimes), and sometimes they’re downright weird. But they are collectibles, and they certainly have more than a moment. NFT made headlines with celebrities releasing their collections ranging from “The Mohammed Ali Collection” to Tony Hawk and then Banksy and Beaple, whose work was auctioned off at Christie’s for an astonishing $69 million bid was. Anything can be sold as NFT as long as it is digitized first; From gifs to songs like Snoop and Grimes, to tweets – remember Jack Dorsey’s first Twitter tweet “Just setting up my twttr” with memorable words? On March 21, 2006, he wrote, and was later auctioned by the CEO of Twitter and Square, Dorsey, to a Malaysian businessman for $2.9 million. And especially art, which includes trading cards and unique pieces of artwork.
The strange and wonderful story of NFT
The advantage of NFT over physical artwork is that instead of placing it on your wall or in your home where a limited number of people can see and enjoy it, digital art opens it up for viewing in a digital gallery so that everyone can enjoy Can you
However, NFTs come with a hefty price tag. And I don’t mean how much you will buy them on the NFT Marketplace. I’m talking about the cost of the planet. Most NFTs are bought, sold or created on the Ethereum blockchain. As many crypto aficionados know, Ethereum gas prices are out of this world, as the miners out there have to use up an incredible amount of energy for each ETH they own. Not only is this impractical on wallets, where transactions on the Ethereum network can cost anywhere up to $1000 per transaction, but on the planet the cost is even higher.
Ethereum is based on a system called “proof of work”. It is the security system that ensures that all transactions or puzzles are being authenticated and verified accurately and then stored on the blockchain. The puzzles that miners are forced to solve are extremely complex and require enormous amounts of energy. For solving each puzzle, they receive rewards via Ethereum. The energy absorbed in this way makes the act of tampering with the bookkeeping unrealistic, and is a form of security.
However, it is also impractical, slow to transact and especially impractical for casting NFTs. For this reason, the future of mining will be operated with a system called “proof of stake” rather than the current “proof of work”. It works in a different way. Instead of using extraordinary amounts of energy to keep miners straight and narrow, they need to lock down cryptocurrency holdings, which gives them a reason to stake and behave.
from work to stake
Here’s what he said: “At OpenSci, we are excited to support a growing, cross-chain ecosystem of user-owned digital assets. We are deeply impressed by the work the Tezos ecosystem has done to advance NFT standards, And we are proud to announce our collaboration with the Tezos ecosystem.”
So demand for NFTs may fall, but only on carbon-emitting, energy-gazzling networks. Is Proof of Stake the future of NFTs?