- Ethereum has set September 15 as the likely date for the much-anticipated merge.
- The users will be affected by the Ethereum merge because their digital assets might be affected.
- The switch from Proof of Work to Proof of Stake is likely to affect Ethereum-based NFTs, so users should be careful.
This year, Ethereum turns 7, and it gave its users a present in the form of Ethereum merge. As the merge changes the core idea of how Ethereum works, it will have long-term effects on its users. Changes to the working model have been planned for a while, and they are expected to bring about many improvements. It will not only make the network faster, but it will also help in other ways.
The Ethereum merge is likely to have an effect on NFTs and other digital assets. As Proof of Work gives way to Proof of Stake, it is likely that NFTs will be duplicated. So, the second NFT could give the owner trouble. Even though it is not certain, there is still a chance that it will happen. So, the users need to be careful so that nothing bad happens.
Here’s a quick look at how the Ethereum merge will affect NFTs and what users can do to stop the bad effects.
The effects of the Ethereum merge
All of the people in the Ethereum ecosystem will be affected by the merge. Some of these are users, developers, miners, and others. Because the developers wanted to make sure there were no quality problems, the merge took a long time. When the way Ethereum works changes, its carbon footprint will go down. The users will also find it easier to confirm transactions.
When validators don’t have to compete with each other, transaction fees will go down, which is good for users. NFTs are one of the most important assets on the Ethereum blockchain, and they also bring in a lot of money for it. Analysts make guesses about how the Ethereum merge might affect NFTs in different ways.
The biggest change will be that less energy will be used to make and keep NFTs running. The change being talked about will cut the amount of carbon used on the Ethereum blockchain by 90%. Analysts think that Ethereum will grow quickly after the merge. So, it will be much easier to create and keep track of NFTs.
Risks that could come with NFTs
The Ethereum merge could have effects other than just good ones. Instead, it could have some bad effects on NFTs and the people who own them. Adam McBride says that the Ethereum merge could put NFTs at risk for users. McBride has written about the possible problem and how to fix it in a Twitter thread.
There is a chance that Ethereum will merge on September 15 or 16. This gives users time to protect their NFTs. McBride says that there should still be at least one Proof of Work fork of Ethereum. So, if the mentioned fork stays, two versions of the users’ NFTs will be made. The Proof of Work fork will have one version, and the Proof of Stake Ethereum will have the other.
The users could face a problem called a “replay attack,” which means that if a transaction happens on one blockchain, it could also happen on the other. So, it’s possible for someone else to use NFT or any other digital asset to make a transaction. The effect that was mentioned might or might not happen, but it has a chance.
So, users can stop selling their NFTs and move them to their new PoW chain and new wallets. So, users can protect their NFTs from any impacts that might happen.
The tentative date for the Ethereum merge is September 15, so it is likely to happen soon. Adam McBride says that there is a chance that mode changes will affect NFTs. One of these is a “replay attack,” which can lead to the same transaction being made twice. So, users can take measures to make sure they don’t run into any problems.