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Depending on the wood, it can sometimes be toxicIt's called biofilm. It is completely harmless to fish and totally normal for newly introduced driftwood. Shrimp and certain plecos love it.
I guess that I always use the right type of wood then, because I have never had any issues with it. That being said I use manzanita and MDW exclusively.
I’m not sure what type of wood it is, it appeared a couple weeks ago and I took it out and boiled the wood for a couple hours. I haven’t put the fish in yet as it’s in a different tank.This is not just a biofilm, it is a fungus from within the wood. All surfaces under water develop a biofilm, but most of the life is invisible for the most part--bacteria of various species, micro-organisms (this is what fish are looking for when they browse surfaces), and algae which can become visible. None of this is harmful, quite the opposite.
However, this whitish slime/scum/mold is a fungus from the wood. There are many species of fungus, some are safe but some are deadly toxic. I had one of these a few years ago, and fortunately realized it in time to save my fish. Others have not been so fortunate. The only way to tell the species is to have it examined by a microbiologist or marine biologist. That is not within the scope of many of us, so monitor the fish and be prepared to remove the wood if fish show signs of trouble--increased rapid respiration, lethargy, maybe gasping. Obviously these symptoms occur with many different health issues. I would also take the wood out and give it a very good scrub under the hot water tap. The fungus may reappear, or not.