 This early approach to establishing an idealistic monism and thereby vindicating a Fichte-inspired dynamic version of ontological idealism was in turn given up by Schelling a couple of years later in the second edition of the Ideas and criticized by him as providing a basis only for what he now calls “relative idealism” (IP 52; SW 1, 163). It is replaced by what he now names “absolute idealism” (IP 50; SW 1, 162). Both his criticism of his earlier World-Soul conception and his endorsement of absolute idealism are at least to a certain degree due to Hegel’s discussion of Schelling’s philosophy in his Difference between Fichte’s and Schelling’s System of Philosophy (1801). Schelling’s new conception, which underlies what came to be known as his “System of Identity” (Identitätssystem), takes reality to be a dynamic whole which he describes as the “undivorced” (ungeschieden) or undifferentiated unity of the absolute-ideal or subjectivity and the absolute-real or objectivity in an “eternal act of cognition” (IP 47; SW 1, 157). This eternal act is all there is, it is “the absolute”. It is disclosed in two fundamentally different forms, one of which is characterized by the prevalence of subjectivity whereas in the other form objectivity prevails. These two forms give rise to the distinction between an “ideal world” and “Nature” (IP 49; SW 1, 161). However, according to Schelling these forms have to be distinguished from the “eternal cognitive act” or the absolute from which the ideal world and Nature originate. This act is pure activity of knowing that creates its objects in the very act of cognition by giving them a form. Because reality is conceived thus as a dynamic self-organizing cognitive process that lies at the basis of even the most fundamental opposition between subject and object, Schelling thinks of his ontological monism as a version of idealism. He writes: