The post Ethereum Network Prepares For The Shanghai Upgrade appeared first on Coinpedia Fintech News
On September 15, the ethereumnetwork successfully completed its transition from proof-of-work (PoW) to proof-of-stake (PoS), a change that is expected to increase sustainability and reduce energy usage by 99.95%.
However, contrary to popular expectations, the merger didn’t have any effect on the Ethereum price; instead, the price plunged after the merger.
Now, the network is preparing itself for the next upgrade called Shanghai. This upgrade will support the withdrawals of a validator that takes place from the Beacon Chain to EVM or Ethereum Virtual Machine. This is expected to happen through a new system-level operation. EVM is software that executes smart contracts and evaluates the ETH network after every addition of the block to the chain.
December 1, 2020, was the day when the Beacon chain was launched for supporting Ethereum (ETH) staking. Moreover, the chain was brought into force to see the transition of proof-of-work to proof-of-stake through a merger.
Ethereum Beacon Chain To Support Withdrawals
Till now, the Beacon chain had only supported ETH staking and now with the upgrade, the chain will be able to support withdrawals too. This withdrawal will be enabled through EIP-4895 which is known as Beacon Chain Push Withdrawals as Operations.
Also, the Shanghai Upgrade has a few important Ethereum Improvement Protocols (EIP) that also includes EIP-3540, EIP-3074, EIP-3670 and the most important one – EIP-4895. The withdrawal token that the validator will receive is known as operations or a new object in the block.
Interestingly, users can withdraw the staked ETH coins without any gas fees as there are limitations on the number of tokens that they can withdraw. Now, as the merge is completed, the network will also focus on the Surge, Verge, Purge and Splurge cycles.
Currently, Ethereum is trading at $1,343 after a fall of 1.16% over the last 24hrs.