When we started our NFT self-experiment, it did not take long
before questions relating to energy consumption came up. According
to our estimates, the two transactions (i) minting of the token and
(ii) authorisation of an eventual sales processing, produced a
CO2-footprint of over 100 kg of CO2EQ. If a tailor-made smart
contract would have been employed, this number would have been ten
times higher. In short, the minting, transfer and even the sheer
existence of NFTs require a lot of energy. But what is the reason
for all this energy consumption and are there regulatory
instruments to curb it?
Reasons for the energy hunger of NFTs
Very simply put, the reason for the energy hunger of NFTs lies
in the underlying validation system: Today, most NFTs run on
the Ethereum blockchain. The Ethereum
blockchain is a way of conducting and recording transactions
through a decentralised network of computers. Because of the
absence of a centralised authority or ledger, a
