OpenSea and others do not support Ethereum forks, post-merge

Ethereum is currently receiving a lot of attention as the merge update approaches. The upcoming update focuses on improving all cryptocurrency protocols to make the system more efficient and secure.

The upgrade has pushed large companies in the ecosystem to take the position.

Many exchanges are being forced to decide whether or not to support a potential Ethereum (ETH) fork. In the recent announcement, the leading non-fungible token platform OpenSea announced that it will only support the Proof-of-Stake (PoS) version of Ethereum.


OpenSea thinks too much

OpenSea, the largest marketplace for non-fungible tokens, announced in a public post on Twitter that it would not support a potential fork from Ethereum (ETH) on its platform.

OpenSea, which gets most of its processing volume from the Ethereum blockchain, will stick with the official version of the network. As a result, NFTs from any new version of Ethereum are incompatible in proof-of-work:

Namely,

“First and most importantly, we are committed to supporting NFTs exclusively on the upgraded Ethereum PoS chain. While we will not speculate about possible forks – to the extent that forked NFTs exist on ETHPoW – they are not supported or reflected on OpenSea.”

The platform also states that it has already started preparations for The Merge update and that it remains optimistic about this transition.

OpenSea has not only been prepared to support the updated version of the PoS blockchain, but also for the OpenSea product ensuring a seamless transition.

Throughout the transition, the NFT marketplace maintains its commitment to monitoring, governance, and communication.


It’s all about growth

Expected in the coming weeks, the long-awaited merge update enables a transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus by merging the classic blockchain with the beacon chain.

However, this update isn’t for everyone, and there’s a good reason for that. The merger will no doubt end the process of mining Ether, especially with the difficulty bomb.

Some miners, the vast majority of whom have made significant financial investments in their equipment, have expressed a desire to continue their work.

This implies that a clear distinction needs to be made between the future blockchain that will be switched to PoS with the exchange of validators and the one that might be forked to get the possibility of mining.

Because of this, the big ecosystem entities like OpenSea have to decide whether to support the upcoming forks.

Earlier, Binance, the world’s largest cryptocurrency exchange, said it would support the fork version of Ethereum. Huobi Global Exchange also follows suit with certain conditions imposed.

On the other hand, Circle, the company that issues the highest-cap stablecoin on the Ethereum blockchain, USDC, has announced uncompromising support for the proof-of-stake version of Ethereum. Chainlink, the main oracle network in the ecosystem, will either not support the potential Ethereum fork.


We’re still in the first inning

Cryptocurrency market participants have many thoughts and opinions about the upcoming update. In fact, a number of analysts think The Merge could have a significant impact on a variety of projects.

Ethereum is not only the second most valuable cryptocurrency in the world, but also the third most popular cryptocurrency overall. Additionally, it serves as the hub of an ecosystem that connects numerous decentralized projects in token exchange platforms, credit production, and revenue generation.

Every day, billions of dollars of cryptocurrency are exchanged in the Ethereum ecosystem. In addition, the stability of Ethereum as the carrier of the system is crucial for the operation of DeFi protocols that use this blockchain.

The latter are therefore heavily reliant on the proper functioning of Ethereum’s consensus mechanism.

Also, not surprisingly, the report clarifies that DeFi platforms’ dependence on the Ethereum ecosystem may have an impact on stablecoin stability once the merge operation is complete.

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