Will the Ethereum Merger Affect NFTs?
- In addition to the Ethereum Merge price, holders of Ethereum are also focused on the Ethereum Merge NFT effect.
- There are pros and cons that the merger will have on NFTs.
Ethereum was launched in 2015 and will mark its 7th anniversary by switching to a PoS Proof-of-Stake) network. The switch, known as the Merge upgrade, will change the fundamental structure of how the network works and have a long-term effect on the network’s users. Many members of the Ethereum ecosystem have been waiting for these changes for a long time.
They believe that changing the network’s working model will lead to huge improvements, such as increased speed and lower transaction fees. The merger will also affect all projects running on the Ethereum network, including NFTs. Many argue that it would be a copycat of NFTs once Ethereum’s transition to a PoS network is complete.
Related: Anthony Scaramucci Warns Retail Investors Ahead of Ethereum Merger
A copy of NFTs creates problems for the NFT holders as there would be two “original” NFTs. Although there is no guarantee that the NFT copies can happen, it is still possible. Therefore, NFT creators and owners need to be aware and prepared if it happens.
Effects of the Merger
Users, developers, miners and other members of the Ethereum ecosystem will feel the effects of the Ethereum merger. An Ethereum PoS would make it easier for users to validate transactions. Users would also benefit from a reduction in transaction fees since there would be zero validator competition.
The merger will also affect NFTs. NFTs are one of the hottest properties on the Ethereum blockchain. NFTs are one of the biggest contributors to Ethereum’s revenue. Analysts predict that an Ethereum PoS network will make it easier to create and maintain NFTs. They explain that carbon use on the network will be reduced by up to 90 percent.
Negative impact on NFTs?
Noted NFT archaeologist, Adam McBride, argued that the merger would also pose some risk to NFT owners. Using a Twitter thread, McBride cited various issues that NFT creators may face after the merger.
The Ethereum Merger Could Put Your NFTs AT RISK🚨
Here’s a 🧵 thread that explains why and gives you a simple solution to keep your NFTs safe.
1/8 pic.twitter.com/x6v8eJVwup— AdamMcBride.eth 🔎 NFT Archaeologist (@adamamcbride) 11 August 2022
He claimed that there would still be an Ethereum proof-of-work network after the merger if the rumors were true. Therefore, two versions of NFTs will exist, one for the PoW network and the other for the PoS network. Thus, NFT owners may face a problem called a replay attack. That is, an action on NFT on Ethereum PoW will happen simultaneously on Ethereum PoS and vice versa.
Therefore, any person accessing a particular NFT can initiate a transaction. McBride said this scenario is a remote possibility but could happen. The NFT archaeologist suggested that the best solution for NFT creators to protect their NFTs is to remove all NFTs they have for sale before the merge happens. After the merge, they should transfer the NFTs they have on the PoW chain to a new wallet. According to him, this action creates a disconnect between the PoW NFTs and the PoS NFTs. The Ethereum merger is scheduled to happen on September 15, 2022.
