As Ethereum plans on switching from a Proof-of-Work algorithm to a Proof-of-Stake system, OpenSea, one of the giants in the NFT marketplace, has expressed its stand on any forked version NFT on Ethereum.
Key Takeaways
- The upcoming Ethereum merge will lead to potential forked versions of the cryptocurrency
- OpenSea marketplace makes it clear that the platform will not support any Ethereum forked version
- Crypto platforms, including Circle and LooksRare, have also taken a stand against any forked version of Ethereum
- Others like Coinbase have made it clear that ETHW, a potential forked version of Ethereum, will be listed if it meets the listing criteria
OpenSea marketplace has firmly said it would only support proof-of-stake NFTs on Ethereum. This was made known through a tweet from the OpenSea handle expressing, “we are committed to solely supporting NFTs on the upgraded Ethereum PoS chain.” This is specifically aimed at enabling a straightforward transition following the merge.
The forthcoming transition of Ethereum has been regarded by many as a turning point for the blockchain industry. According to Asaf Naim, CEO of decentralized application developer Kirobo, most platforms that now use Ethereum will also support the PoS chain because doing otherwise would effectively shut them out of the market.
OpensSea marketplace is one of the biggest platforms for buying and selling various NFTs, including artwork, music, collectibles, and other gaming items. The platform is focused on helping creators by simplifying how users and clients handle ownership of various digital assets and also helping develop the robust digital economy of the future.
An NFT is a digital asset that resembles real-world items, such as music, works of art, videos, and in-game assets. They are frequently traded and purchased online using cryptocurrencies, and they commonly encrypt their data using the same underlying software as many cryptos.
The Ethereum merge is expected to take place in September, and this will be one of Ethereum’s biggest upgrades to date. The event will see Ethereum change its Proof-of-Work (PoW) algorithm to a Proof-of-Stake (PoS) algorithm.
Crypto Platforms and their Position on the Merge
As with OpenSea, stablecoin crypto platform Circle has stated that their USD Coin (USDC) can only have one version and that it would only support the PoS chain. This will also lead to a serious impact for Defi applications on any forked chain.
LooksRare, an NFT marketplace, likewise disclosed its contingency plan and stated that it would enter maintenance mode just before the event. The strategy involves temporarily halting trade until after the merge to prevent replay attacks. Users who conduct transactions on an Ethereum PoW fork risk the danger of losing their NFTs after the merge if no such precautions are taken.
The switch to PoS on the Ethereum mainnet has also received the approval of Chainlink. The team stressed that the protocol would not allow any potential splits of Ethereum that might take place following the merge. They also assured the community that they were doing everything possible to be prepared for any issues that might arise during the transition.
Other platforms have also made efforts to accommodate the migration. In light of anticipated difficulties in liquidation transactions due to excessive consumption, DeFi lending protocol Aave has advocated suspending ether borrowing until the merge.
Several DeFi networks and a number of exchanges, including Binance and Kucoin, have already signified their support for the upcoming merge without as much as mentioning the fork.
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