Ethereum is turning 7 this year, and it has brought its users a gift in the form of Ethereum merge. Ethereum merge will have lasting impacts on the users as it is changing the basic idea of how it works. The change in the working model was expected for a while, and it is meant to bring many improvements. It will not only bring speed improvement but other enhancements for the users.
NFTs and other digital assets are likely to be impacted by the Ethereum merge. As the transition from Proof of Work to Proof of Stake takes place, it will likely create a copy of NFTs. Thus, the second NFT might create trouble for the owner. Though there is no certainty about its happening, there is still a chance of it. So, the users must be careful before any untoward incident occurs.
Here is a brief overview of the impacts of Ethereum merge on NFTs and what the users can do to prevent the negative impacts.
Ethereum merge and its impacts
Ethereum merge will have an impact on all members of the ecosystem. These include users, developers, miners, etc. The merge took much time because the developers wanted to ensure there are no quality issues. The change in the mode of operation will lower Ethereum’s carbon footprint. Also, the process for the validation of transactions will become easier for the users.
The elimination of validator competition will decrease the gas fees for transactions, in turn benefitting the users. NFTs are one of the most significant commodities on the Ethereum blockchain, in fact bringing it considerable revenue. Analysts speculate about the various impacts that the Ethereum merge might have on NFTs.
The most important impact will be the decreased consumption for the creation and maintenance of NFTs. The mentioned change will decrease the use of carbon to 90% on the Ethereum blockchain. Analysts predict a speedy surge for Ethereum as the merge takes place. Thus, minting and maintenance of NFTs will become much easier.
The possible impacts of the Ethereum merge are not limited to benefits. Instead, it might have some negative impacts on NFTs and their owners. According to Adam McBride, the Ethereum merge might put users’ NFTs at risk. In a Twitter thread, McBride has explained the possible problem and its solution.
As there are chances of Ethereum merge taking place on 15 or 16 September, the users have got time to secure their NFTs. According to McBride, at least one Proof of Work fork of Ethereum is expected to remain there. Thus, if the mentioned fork remains, it will create two versions of the users’ NFTs. One version will be there on the Proof of Work fork, while the other will be on the Proof of Stake Ethereum.
The users might face an issue named ‘replay attack,’ which means that if a transaction takes place on one blockchain, it might happen on the other. Thus, someone else might be able to access NFT or any other digital asset and make a transaction. The mentioned impact might not necessarily happen, but it stands a chance.
Thus, the users can delist their NFTs from sale and transfer them to their new PoW chain to new wallets. So, users can save their NFTs from possible impacts.
Conclusion
Ethereum merge is likely to happen soon as the tentative date for it is 15 September. According to Adam McBride, there is a chance of NFTs being affected due to mode changes. One of these is a ‘replay attack,’ which can create a scenario of double transactions. Thus, users can take preventive actions to ensure that they don’t face any problems.
Source: https://www.cryptopolitan.com/what-happens-to-nfts-after-ethereum-merge/