What: Currently scheduled to start around mid-September, the merge will see the Ethereum blockchain transitioned from its existing proof-of-work mechanism to a more efficient proof-of-stake system, ultimately reducing the amount of energy used per transaction.

Why it is important: Brands that have released Ethereum-based NFTs will be able to claim that they are now using an energy-efficient infrastructure, should the merge be successful.

The merge is also intended to maintain Ethereum's dominance as the preferred blockchain for NFTs. Some fashion companies have used other blockchains which already use the proof-of-stake system, however, Ethereum's appeal remains in its widespread adoption and higher selling prices.

The merge is expected to reduce the use of the Ethereum blockchain by 99%. The current method has been said to use more electricity annually than Romania, with its annual carbon emissions just below Tunisia's.

Instead of computers racing to solve complex equations per transaction, the new system will dispense with this competition and instead involve investors staking their ETH in a pool, entering them into a lottery that will select one to validate the transaction and claim the reward.

The merge also aims to make Ethereum more scalable and lay the groundwork for making faster updates.

Understanding the Ethereum 'merge': how it will affect fashion