Unused Renewable Energy Could Power NFT Transactions, New Study Finds

Jace Dela Cruz, Tech Times 11 July 2023, 06:07 am

A study conducted by researchers at Cornell Engineering has revealed that the surplus renewable energy produced by solar, wind, and hydroelectric sources in the United States could be utilized to power the exponential growth of non-fungible token (NFT) transactions.

The research, led by Professor Fengqi You, proposed leveraging the untapped potential of renewable energy that currently goes to waste due to insufficient storage capacity. The team aims to address the increasing energy demands associated with the expanding NFT market by harnessing this unused energy.

(Photo : Mohamed Hassan from Pixabay)

Surge in NFT Activity

The adoption of a more energy-efficient algorithm has already made NFT transaction processing more sustainable. However, the projected surge in NFT activity threatens to offset the energy savings achieved so far. To counteract this, the researchers suggest redirecting excess renewable energy to power the growing NFT ecosystem.

You explained the concept using an analogy, stating, "It's the same idea as a car sitting in someone's garage. If it's not being driven, they could lend it to someone for carsharing. In our case, wind, solar, and hydro power sources that aren't being utilized could be used to do something good."

The study reveals that the current underutilized or unutilized power sources in the US hold significant potential. For example, around 50 megawatts of untapped hydropower from existing dams or a 15% utilization of wind and solar energy that cannot be currently stored in Texas could be allocated to support the exponential growth of NFT transactions.

While blockchain technologies, including NFTs, offer robust security and diverse applications, their energy-intensive transaction processing poses environmental challenges.

The researchers emphasize the need to make NFT transaction processing more sustainable to mitigate the associated carbon emissions. Without intervention, annual NFT emissions are projected to reach approximately 0.37 megatons of carbon dioxide, equivalent to the emissions produced by 1 million single-trip flights from New York to London.

From PoW to PoS

According to the research team, the switch from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanisms by the Ethereum blockchain in 2022 resulted in a significant reduction in energy consumption.

However, the anticipated rise in NFT transactions could lead to an increased number of validators operating on grids powered by fossil fuels, resulting in a surge in carbon emissions.

The study's authors highlight the potential use of green hydrogen and green ammonia, which are energy carriers derived from hydroelectric sources, as viable alternatives.

Retrofitting existing power sources to accommodate these energy carriers may present challenges, but the benefits for both energy systems and the environment are considerable.

You concluded that leveraging surplus renewable energy to power NFT transactions offers a valuable solution. He noted that the "NFT processing is very power-hungry, so this turns out to be a good way to take advantage of these curtailments."

The findings of the study, titled "Climate Concerns and the Future of Non-Fungible Tokens: Leveraging Environmental Benefits of the Ethereum Merge," were published in the Proceedings of the National Academy of Sciences.