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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 basic 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 expecting 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 lesser transaction fees. The Merge will also affect all projects running on the Ethereum network, including NFTs. Many argue that there would be a copy of NFTs once Ethereum’s transition to a PoS network is complete.
Related: Anthony Scaramucci warns retail investors ahead of the Ethereum Merge
A copy of NFTs spells trouble for the NFT owners as there would be two ‘original’ NFTs. Even though there is no guarantee that the NFT copies can happen, it is still possible. Hence, NFT creators and owners must be aware and prepared if it happens.
Users, developers, miners, and other members of the Ethereum ecosystem will feel the effects of the Ethereum Merge. An Ethereum PoS would make it easier for users to validate transactions. Also, users will benefit from a reduction in transaction fees since there would be zero validator competition.
The Merge 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 revenues. Analysts predict that an Ethereum PoS network will make it easier to mint and maintain NFTs. They explain that carbon usage on the network will reduce by up to 90 percent.
Famous NFT archaeologist, Adam McBride, argued that the Merge would also pose certain risks to NFT owners. Using a Twitter thread, McBride cited various issues NFT creators might have after the Merge.
The Ethereum Merge may put your NFTs AT RISK🚨
Here's a 🧵thread explaining why & gives you a simple solution to keep your NFTs safe.
1/8 pic.twitter.com/x6v8eJVwup
— AdamMcBride.eth 🔎 NFT Archaeologist (@adamamcbride) August 11, 2022
He argued that there would still be an Ethereum proof-of-work network after the Merge if the rumors were true. Hence, two versions of NFTs would exist, one for the PoW network and the other for the PoS network. Thus, NFT owners might face a problem called a replay attack. That is, an action on the NFT on the Ethereum PoW will happen simultaneously on the Ethereum PoS and vice versa.
Hence, any person accessing a specific NFT can start a transaction. McBride said this scenario is a remote possibility but can happen. The NFT archeologist suggested that the best solution for NFT creators to protect their NFTs is to delist any NFT they currently have for sale before the Merge happens. Then 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 Merge is set to happen on September 15, 2022.
Paul is a cryptocurrency enthusiast from Canada, and since 2021 he has been writing about cryptocurrency for online news portals. He writes mostly news-related articles. Stay tuned to his posts to stay up to date with the crypto world.
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