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NFTs

Dark Age & Crypto NFT

Owning and minting NFTs is the new trend and also a form of financial investment, according to most analysts and financial advisors across the world. The sudden rise of NFTs back in the year 2020 has placed the value of the crypto NFTs market parallel to the global market of valuable commodities like Gold, Silver, Crude Oil, etc.

From a crypto artist perspective, the boom of NFTs has revitalized the industry of Art that previously had to rely on social channels to sell their products primarily. NFT marketplaces and NFT gateways currently rule the industry because every other artist wants to place their content on those NFT websites. Doing so can allow them to bank on obtaining maximum profits like what was observed from the sale of CryptoKitties Beeple NFT, Grimes NFT, etc.

Crypto NFT

But, since the Non Fungible Tokens need to be minted on Blockchain, their existence depends largely on digital mediums. Although these NFTs can also offer non-digital assets and other miscellaneous assets, such assets are only linked to the token, as are the digital assets. Each of them needs to be hosted on image and web hosting domains despite being available for sale on the NFT gateways.

So, will a Global Technology Blackout translate into losing your precious crypto NFT purchase(s)? Let’s learn.

The Half-life of NFTs?

Essentially, the NFTs are permanent due to being built on Blockchain, a transparent yet also the most secure technology. However, there’s a matter of a few details that many people don’t know about NFTs- losing NFT.

Assets are only linked to the Non Fungible Tokens. These tokens only serve as a ledger containing the details of the asset URL, the creator, buyer, seller, and other transaction descriptions. Suppose the asset URL hosting domain goes down, or for some reason, the domain hosting server goes out of business. In such cases, the buyer will lose their access to the asset despite owning the token of it.

Global NFT loss Countermeasures

The only way to make your NFT remain somewhat permanent is by hosting it on an InterPlanetary File System (IPFS). Such systems can help locate a digital piece of art or links to tangible assets through scanning multiple hosts on a network. Crypto artists placing their creations or NFTs on such a network can ensure the buyer of the near-permanence of their NFTs.

Global NFT Market & Repercussions

Giant corporations and organizations like Paramount, SNL, NBA, etc., to hit rappers like Flo Rida and other prominent personalities have adapted to minting NFT to offer unique items to the audience. Even recently, the source code for the “World Wide Web” is reported to go on sale through Sotheby’s in New York.

Crypto NFT

While such transactions will collectively acquire millions in their sale, the existence of those NFTs and others also affect our environment. NFTs are a way of authenticating the ownership of digital files and other assets, and they are connected to cryptocurrencies as the medium for purchase. Acquiring cryptocurrencies is possible by mining them or purchasing them using a crypto gateway that offers them by exchanging your fiat money.

Among these options, mining cryptocurrencies has also affected the energy market. Local grids at large are reporting increased spikes in electricity utilization that feeds the computers that perform the crypto mining operations.

Such extensive use of electricity is directly polluting the planet where a few regions are utilizing terawatts worth of electricity that can possibly be used instead to power a whole country nearly the size of Ireland and such. Thus, leading the pool dry of both renewable energy and fossil fuels.

Such enormous consumption plays an additive role in NFT by needing to tokenize the asset, which is done by paying a sum of money to Ethereum miners and other crypto miners. Such transactions inevitably lead to more mining practices. As a result, many energy and fuel reserves are being depleted quicker than projected, leading to further deterioration of natural resources and the entirety of the environment on our planet.

The Takeaway

Sure, NFTs are helping artists earn value for their work. Still, at the same time, crypto NFT practices are also costing our environment, which currently does not appear to decline at any rate. It makes the NFTs a half-life prospect to maximize investment and earnings.

In the event of a Global Digital Blackout brought on by such depreciation of the environment, these tokens may hold little value. However, technology does exist in the form of sustainable backup servers that will retain the Blockchain & NFTs should a digital blackout occur.

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