Ethereum promised big change today with the success of the Shanghai upgrade. It promises several improvements at the blockchain level, to name only the finalization of the transition to Proof-of-Stake. With joy, ETH investors congratulate this hard work of the entire Vitalik Buterin team. Zoom !
After The Merge, the Shanghai upgrade
The wait for the Ethereum Merge was long, 7 years. But on September 15, 2022, the team behind this blockchain was able to announce, without shame, the outcome of this update so dear to the ETH community.
But the Ethereum developers have also promised other improvements which result in theadvent of shanghai. A blockchain upgrade that required, in February, 7 testnets on Ethereum.
There finalization of the transition to Proof-of-Stake would be Shanghai’s ultimate goal. As it has been successful, the community can put a cross to the consensus mechanism based on Proof-of-Work and take advantage of another more energy-efficient mechanism.
investing clarified that the verification of cryptocurrency transactions will not be the same after Shanghai. Because instead of sitting a system that competes block validatorsanother who will select them randomlydepending on the ETH staked, will be set up.
Beacon incomplete?
Ethereum’s Proof-of-Stake-based Beacon Chain was born in December 2020. When the merger took place in September, ETH investors were allowed to stake their digital assets. However, the withdrawal of their ETH remains impossible so far.
With the Shanghai upgrade, this will see a change. Their ETH will take the form of EIP-4895. Moreover, this upgrade will make staking more accessible and efficient. As a corollary, this will promise more security and effective decentralization within Ethereum.
Another point to note with the advent of Shanghai: the possibility for investors to take advantage of the network and the price of ETH. According to CoinDeskthe dream of one day dethroning bitcoin will become a reality.
” Amphibian Capital, my company, takes this logic further and predicts that ETH could reign supreme and become one of the top three most valuable assets in the world over the next decade. The Shanghai upgrade is a crucial step in this direction, which will likely increase Ether liquidity and trading and possibly attract more institutional capital into the crypto economy. », Underlines James Hodges, managing partner of Amphibian Capital.
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