The merger could go down in history as one of the biggest milestones in the blockchain world. The upgrade should make Ethereum transactions faster and cheaper. But that’s not all: the entire power consumption of the second largest blockchain network is also expected to drop by more than 99 percent after the merger.
This should benefit the ETH NFT sector in particular, which continues to make headlines outside of the crypto bubble. In recent years, the NFT ecosystem has been repeatedly criticized as a climate killer.
As a result of the merger, the NFT sector will also become green – so this main argument of many NFT critics will be almost completely invalidated. Moreover, assuming that NFTs will gain increasing acceptance over the next few decades, a near-carbon-neutral blockchain like Ethereum could make some of the energy-intensive operations in our society more efficient.
Examples include the maintenance of the banking system or the preservation of artwork or physical documents, as well as the trading of commodities and stocks. These operations can be handled in a more climate-friendly manner via the Ethereum blockchain.
The merger allows Ethereum to realize its full economic and cultural potential. NFTs could be an alternative to the traditional financial system, allowing humanity to ship digital assets in a more energy efficient way.
This is what you need to know as an NFT holder before integrating Ethereum
There are also risks associated with integrating Ethereum. This also has consequences for NFT owners. A potential fork (a copy of the ETH blockchain prior to merging) could cause a portion of the Ethereum community to move to an alternative blockchain that still relies on Proof of Work (PoW) (ETHPOW).
In other words: Ethereum miners copy the state of the “old” Ethereum PoW blockchain (tokens, NFTs, DeFi protocols, etc.).
However, for NFT holders, this event is not a big deal. All NFTs are replicated to potential PoW forks as well as to the Ethereum 2.0 Proof of Stake blockchain. So the owners do not have to take the actions themselves.
More details about the Ethereum merger and its consequences can be found in the current issue of BTC-ECHO Journal.
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