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Non-Fungible Tokens (NFTs) have lately attracted a lot of investor attention, with some NFTs achieving selling values that were previously unfathomable for a non-fungible virtual asset. Through the lens of non-fungibility of a digital asset, this raises fascinating questions about "value" and "scarcity" in relation to blockchain technology. This article aims to draw attention to the alternative space of blockchain development and exchange in the future. It's easy to forget that not every NFT is inspired by a song, an artwork, or a collectible. In decentralised finance, NFTs also provide significant financial rewards (DeFi). 

Energy Consumption & Climate Controversy :

There is mounting evidence that NFTs are indirectly responsible for the millions of tonnes of carbon dioxide emissions produced by cryptocurrencies used for the selling and procurement of NFTs. Thus according to estimations, the carbon footprint of the "Space Cat" NFT (a GIF showing a cat in a rocket travelling to the moon) is comparable to two months of power consumption for an EU resident. It has been suggested that when people produce, purchase, or trade NFTs using prominent cryptocurrencies like Ethereum, they are liable for a fraction of the carbon gases generated by "mining" for the cryptocurrency. 

The Ethereum cryptocurrency, which is widely utilised in NFT technology, is based on a "proof of work" method. While incredibly wasteful in terms of energy, this "proof of work" mechanism serves as a supervisory or watchdog function for cryptocurrencies, given there is no official authority that regulates bitcoin transactions. To solve complicated riddles, the system requires devices that use a lot of energy. Miners or users overcome these riddles by adding a new "block" of validated operations to the decentralised blockchain. According to Digiconomist, the typical Ethereum transaction requires 73 kWh of power, which is equivalent to 35 kg CO2 emissions. Ethereum is predicted to consume around 34.84 TWh per year, making it the world's 61st largest power consumer. 

Intellectual Property and NFTs

Legal practitioners in India and around the globe are debating the problems of intellectual property rights ("IPR") and duties in connection to non-financial transactions ("NFTs"). IPR protection techniques, such as licensing, assignment, and transfer of holding rights of IPR of the digital asset, are required to holistically safeguard the digital asset. The non-fungible character or originality of NFT technology has resulted in this current trend toward creative IPR protection techniques. According to IPR specialists, these tactics are required as they expect possible infringement difficulties to rise whenever third-party IPR collides with the primary author of the NFT. However, given "the rights provided by an associate NFT marketer rely on whether the rights were transferred via a licence or an assignment, and they will fluctuate with each NFT," it may be essential to design and construct a paradigm for the possession rights and first holding terms of NFTs. 

Based on the underlying consensus, mere ownership of the NFT may not bestow ownership of the underlying content/art or the related IPR, resulting in a situation in which the NFT "owner" may not be authorised to "breed, distribute copies, publicly perform, display, or build by-product works of the first work" because the owner of the copyright may preserve such rights exclusively. 

What can be done ?

While individuals work out the wrinkles in all of these proposed remedies, the climate situation worsens by the day. People will continue to refuse to engage in a system that they believe is intrinsically bad and ecologically damaging, even in the face of very real climate-related tragedies. Finally, artists are the ones who are most vocal in their advocacy for change. If NFT marketplaces fail to match their expectations, artists may begin minting their NFTs on platforms utilising cleaner cryptocurrencies. There is currently an artist-led movement underway to gather funds to reward those who can devise innovative techniques to make crypto art more viable. Anyone who wishes to support such artists by purchasing their work may do so by migrating to less polluting platforms – or just purchasing a tangible copy of their work. But again, this is a well dewelled debate to make.