Shanghai Upgrade: The Latest Hard Fork Set to Revolutionize Ethereum
Ethereum’s getting an upgrade soon and it’s called the Shanghai upgrade, but some folks are calling it the Shapella upgrade. It’s a hard fork that’s set to happen on April 12, 2023, and one of the biggest changes is that validators will be able to withdraw their assets from the Beacon Chain. This is a pretty big deal because there’s a ton of staked Ether out there, worth over $26 billion!
The main improvement is called EIP-4895, and it’ll let validators finally get their hands on their staked tokens. They’ve been holding onto them since December 2020, when the Beacon Chain was first released. Validators are important to the Ethereum blockchain because they help secure the mechanism. They’ve been even more crucial since September 2022 when the Merge started the process of changing Ethereum’s consensus mechanism from proof-of-work to proof-of-stake.
The Shanghai fork will let validators withdraw their staked assets freely, so they won’t have to keep them locked up for a long time. After the upgrade, validators can create a “withdrawal credential” to unstake any rewards they’ve earned, or they can exit the Beacon Chain completely by unstaking all 32 ETH.
There are also some smaller improvements coming with the upgrade, like EIP-3651, which proposes lowering gas fees for Maximal Extractable Value payments, and EIP-3855, which aims to lower gas costs for developers in general. There are even more improvements in the works for later in 2023, so keep your eyes peeled.
Overall, the Shanghai upgrade may be small, but it’ll have a big impact on folks with staked ETH. Validators can finally get their hands on their tokens, and Ethereum developers will benefit from lower gas fees during periods of high activity.
Clever Robot News Desk 6th April