Ethereum (ETH): Shanghai upgrade completed!
Ethereum promised a major change today with the successful completion of the Shanghai upgrade. The upgrade will lead to several improvements in the blockchain, including the finalization of the switch to Proof-of-Stake. ETH investors are delighted to congratulate themselves on the hard work of the entire Vitalik Buterin team. Zoom in!
After The Merge, the Shanghai upgrade
The wait for Ethereum’s Merge was long, 7 years. But on September 15, 2022, the team behind this blockchain could announce, without shame, the achievement of this upgrade so dearly desired by the ETH community.
But Ethereum’s developers have also promised other improvements that translate into the advent of Shanghai. An upgrade of the blockchain that required, in February, 7 testnets on Ethereum.
The finalization of the transition to Proof-of-Stake would be the ultimate goal of Shanghai. As this has been successful, the community can put a stop to the Proof-of-Work based consensus mechanism and take advantage of another more energy efficient mechanism.
Investing said that the verification of cryptocurrency transactions will not be the same after Shanghai. Because instead of establishing a system that pits block validators against each other, another one that will randomly select them, based on the ETH put into play, will be put in place.
Ethereum’s Proof-of-Stake-based Beacon chain came into existence in December 2020. When the merge took place in September, ETH investors were allowed to bet their digital assets. However, withdrawing their ETH remains impossible until now.
With the Shanghai upgrade, this will 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.
Something else to note with the arrival of Shanghai is the ability for investors to take advantage of the ETH network and price. According to CoinDesk, the dream of one day dethroning bitcoin will become a reality.
“Amphibian Capital, my firm, takes this logic further and predicts ETH may reign supreme as one of the world’s top three most valuable assets in the next decade. The Shanghai upgrade is a crucial step in that direction, which will likely increase liquidity and trading of ether and possibly attract more institutional capital into the crypto economy,” notes James Hodges, managing partner of Amphibian Capital.
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