The Ethereum Shanghai upgrade is finally launched, allowing over $34.5 billion in staked ETH

The Ethereum Shanghai upgrade, also known as the “Shapella” upgrade, has officially gone live on the Ethereum blockchain. This marks a significant milestone for the Ethereum network, as it brings a host of new features and improvements to the platform, including the ability to withdraw staked ETH.

According to a report from Watcher Guru, the upgrade went live on April 12th, 2023, following a successful activation on the Ropsten, Goerli, and Rinkeby testnets. The upgrade is named after the city of Berlin, which is known for its vibrant technology and startup scene.

One of the most significant changes brought by the upgrade is the introduction of a new transaction type called “EIP-1559.” This new transaction type aims to improve the user experience by making transaction fees more predictable and less volatile. It also introduces a new fee-burning mechanism that is designed to reduce the overall supply of ETH over time.

Another key improvement introduced by the Shanghai upgrade is the addition of four new Ethereum Improvement Proposals (EIPs) aimed at improving the efficiency and security of the network. These EIPs include EIP-2565, EIP-2929, EIP-2718, and EIP-2930.

Perhaps the most significant improvement introduced by the Shanghai upgrade, however, is the ability to withdraw staked ETH. This feature has been long-awaited by Ethereum stakeholders who have had their ETH locked up in the Ethereum 2.0 staking contract. With the activation of the Shanghai upgrade, these stakeholders can now withdraw their staked ETH, which is estimated to be worth over $34.5 billion.

The ability to withdraw staked ETH is a significant development for the Ethereum ecosystem, as it provides greater flexibility and liquidity for Ethereum stakeholders. This development is also expected to increase the adoption of Ethereum 2.0 staking, as stakeholders can now be assured that their staked ETH can be withdrawn if needed.

Overall, the Shanghai upgrade represents a major step forward for the Ethereum network, as it brings a host of new features and improvements that are expected to make the platform more efficient, secure, and user-friendly. The ability to withdraw staked ETH, in particular, is a significant development that is expected to drive greater adoption of Ethereum 2.0 staking and further enhance the value proposition of the Ethereum ecosystem.

Source:

Ramos, J. (2023), Ethereum Shanghai Update is Officially Live, https://watcher.guru/news/ethereum-shanghai-update-is-officially-live.

Original link: Crypto Nook