What is Ethereum Shanghai Upgrade & why is it vital for Investors?
Being a crypto junky, you might have heard about Ethereum 2.0, and the merge of Ethereum. Afterward, one of the world’s largest smart contract platforms, the Ethereum network has gone through various updates and upgrades over the years. Now, there is a next major development going to be affected in the crypto industry i.e. Ethereum Shanghai Upgrade since the Ethereum Merge.
In case you are not aware of the Ethereum Shanghai Upgrade, then worry not, we are here to help you learn all the cryptocurrency latest updates and market buzz.
Ethereum Shanghai Upgrade: Takeaways
To completely understand the latest big implementation in the process of the Ethereum network, you just need to dig into the recent past. A bit back, the developers of the Ethereum network updated the cryptocurrency fanatics with the underwent process of the Ethereum Consensus Mechanism- from a Proof of Work (PoW) to a Proof of Stake (PoS) called Merge. In the sweet mid-month of September 2023, the Ethereum Merge was done and officially launched among crypto enthusiasts.
After the implementation of Ethereum Merge, the developers of the network introduced the PoS (Proof of Stake) based Beacon Chain in December. Wherein, the crypto fanatics could become the Ethereum 2.0 validators by staking some 32 ETH or more into the Ethereum network. Those staking (32 ETH or more) of new Ethereum validators was locked for an undisclosed period of time.
So, the Ethereum Shanghai Upgrade is coming up as a solution to the Ethereum network to unlock those stakings.
Ethereum Shanghai Upgrade: Other Required Description
As per the announcements of developers, the Ethereum Shanghai Upgrade is expected to be live in the first month of the second quarter of 2023. But prior to the actual launch of the Ethereum Shanghai upgrade, there were major tests to be taken to be sure about the process.
Sepolia Shapella Upgrade - It was a testnet layer that took place in February 2023, it has all gone successfully on the road to the process of ETH withdrawal (staked value).
Goerli Testnet- It is the up next third and final testnet surface which is to be shot down in March mid before we actually witness the Ethereum network mainnet of ETH withdrawals i.e. Ethereum Shanghai Upgrade.
So, the locked-up ETH of investors with the debut of Beacon Chain will finally be unlocked or released with the live of Ethereum Shanghai upgrade.
Why is the Ethereum Shanghai Upgrade vital for Investors?
As earlier discussed, the Ethereum network brought up a staking program with the debut of Beacon Chain. Therein, investors can stake 32 or more ETH tokens as per their wish to be the validators of the new Ethereum 2.0. But the concern of those ETH investors was they were not aware of the fact that when can they actually get their funds back once they stake or lock their funds invested in ETH.
For all those ETH investors, Ethereum Shanghai Upgrade would be a significant solution through which they can process their withdrawals.
That is why the Ethereum Shanghai upgrade is a vital development for the investors, now they will be able to sell out their PoS chain staked ETH cryptos and get their funds back.
Is Ethereum Shanghai Upgrade necessary?
Though the undergoing development of Ethereum 2.0, the Ethereum Shanghai upgrade is a crucial solution for investors or validators to unlock their staked ETH tokens, there are many other aspects for which the Shanghai upgrade is necessary.
Let’s take a look at all those factors which crypto users can accomplish by getting into the Ethereum Shanghai upgrade program:
Withdrawal process: To participate in the PoS Beacon Chain, one was asked to stake some 32 or more ETH tokens. Now, to pull the staked ETH crypto tokens or to unstake the invested value, validators can proceed with Ethereum Shanghai Upgrade.
Gas fee: Ethereum Shanghai Upgrade is being introduced in the crypto market with an aim to reduce the gas fees for layer-2 operations of Ethereum. Using Ethereum will now be quicker and less expensive due to Layer 2 solutions, the Ethereum Shanghai upgrade, and this improvement might even lower the cost of transactions on the Ethereum network.
Game Changer in Smart Contracts: Another key feature of Ethereum Shanghai Upgrade is it can be seen as a game changer solution in the world of blockchain smart contracts. Also, being the largest blockchain smart contract, Ethereum would continue to advance in terms of development with the help of its Ethereum Shanghai upgrade.
When is it scheduled to live?
The Ethereum Shanghai Upgrade is expected to be implemented in the Ethereum network in the second quarter of the year 2023. The developers and core team of the Ethereum network have already tested the ETH tokens withdrawal process via their prior testnets. The next and final Goerli testnet is going to happen in the upcoming days of March month. As per the reports, the mainnet of ETH withdrawals, Ethereum Shanghai Upgrade will be announced when to be scheduled in the market just after the successful completion of the Goerli testnet.
By Riteshu Sen Jaiswar