Ethereum is getting a lot of attention as The Merge Update draws closer. The upcoming update will focus on enhancing all cryptocurrency protocols to make the system more efficient and secure.
The upgrade has prompted key entities to take up positions in the ecosystem.
Many exchanges are forced to decide whether they will support a potential fork of Ethereum (ETH). In the latest announcement, leading non-fungible tokenization platform OpenSea has announced that it will only support the Proof-of-Stake (PoS) version of Ethereum.
OpenSea is thinking too much
OpenSea, the largest marketplace dedicated to non-fungible tokens, revealed in a public post on Twitter that it would not support a potential fork of Ethereum (ETH) on its platform.
OpenSea, which derives most of its processing volume from the Ethereum blockchain, will remain with the official version of the network. As a result, any new version of Ethereum in Proof-of-Work will be incompatible with NFTs:
meaning,
“First, and most importantly, we are committed to fully supporting NFTs on the advanced Ethereum POS chain. Although we would not speculate about a possible fork – as far as forked NFTs exist on ETHPoW – They will not be supported or reflected on OpenSC.”
The platform also states that it has begun preparations for The Merge Update, and it remains optimistic on this transition.
OpenSea is not only designed to support an enhanced version of the PoS blockchain, but it has also been tailored for the OpenSea product, which will ensure a seamless transition.
Throughout the transition, NFT maintains its commitment to market monitoring, management and communication.
It’s All About Growth
The long-awaited merge update, which is expected in the coming weeks, allows the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus by merging the classic blockchain with Beacon Chain.
However, this update is not favored by everyone, and there is a good reason for it. The merge will undoubtedly put an end to the process of ether mining, especially with difficulty bombs.
Some miners, most of whom have made significant financial investments in their equipment, have expressed a desire to continue their work.
This implies that the blockchain of the future needs to make a clear distinction between switching to PoS with a replacement for validators, and possibly being forked in order to maintain the possibility of mining.
This is why key entities in the ecosystem, such as OpenSea, must decide whether to support the upcoming fork.
Earlier, Binance, the world’s largest cryptocurrency exchange, had said that it would support a forked version of Ethereum. Huobi Global Exchange is also subject to certain imposed conditions.
On the other hand, the company Circle, which issues the highest-capped stablecoin of the Ethereum blockchain, USDC, has announced that it will support a proof-of-stake version of Ethereum. Chainlink, the main oracle network in the ecosystem, will not support a potential fork of Ethereum.
we are still in the first innings
Participants in the cryptocurrency market have a lot of thoughts and opinions regarding the upcoming update. In fact, many analysts are of the opinion that the merge could have a major impact on different projects.
Ethereum is not only the second most valuable cryptocurrency in the world, but the third most popular cryptocurrency overall. In addition, it serves as the hub of an ecosystem that links several decentralized projects in the areas of token exchange platforms, debt generation and yield generation.
Billions of dollars in cryptocurrency are exchanged every day in the Ethereum ecosystem. In addition, as the system’s bearer, the stability of Ethereum is critical to the operation of the DeFi protocol that uses this blockchain.
The latter are thus heavily dependent on the proper operation of the Ethereum consensus mechanism.
It is also not surprising that the report clarified that the DeFi platform’s reliance on the Ethereum ecosystem could have an impact on stablecoin stability once the merge operation is completed.