The Ethereum Merge and NFTs: What is the impact?

August 15

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The recent Ethereum merge and transition from proof-of-work to proof-of-stake (PoS) will have a number of impacts on non-fungible tokens (NFTs). In this article, we’ll explore what those changes might mean for the future of NFTs.

One of the most significant impacts will be on the way that NFTs are minted. Currently, most NFTs are created using the ERC-721 standard, which relies on proof-of-work mining. However, with PoS, it will become possible to mint new NFTs without having to go through the mining process. This could make it much easier and quicker to create new NFTs, which could in turn lead to a boom in the NFT market.

Proof of stake does not require miners to compete against each other. Instead, anyone who owns coins can validate transactions and add blocks to the blockchain. The more coins you own, the more likely you are to be chosen as a validator. One advantage of PoS is that it is much more energy-efficient than PoW since there is no need to run powerful computers.

Another impact of the Ethereum merge will be on the way that NFTs are traded. Currently, most NFT exchanges use ETH as the currency for trading. However, with PoS, it will become possible to trade NFTs using other currencies, such as EOS or BAT. This could make it easier for people to trade NFTs without having to convert their currency first, which could again lead to increased activity in the NFT market.

The recent changes to the Ethereum network may level the playing field between it and its competitors in the race to mint new non-fungible tokens (NFTs). Prior to the change, so-called “Ethereum killers” like Solana and Polygon could use their staking feature to mint NFTs more cheaply and quickly than Ethereum. However, with Ethereum gas fees remaining similar after the merge, they will no longer have that advantage. This shift may make for some interesting battles between the three platforms in the coming months. Who will come out on top in this fight for NFT market share remains to be seen.

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About the author 

lourdes

Lourdes is an International creative strategist & content creator. She has curated content for the fashion, travel & hospitality industry for over 12 years.