Cryptocurrency

Ethereum Shanghai Upgrade scheduled for second half of 2023: Everything you need to know

Key Takeaways:

  • Ethereum Shanghai Upgrade scheduled for second half of 2023.
  • This is the next major upgrade to the Ethereum network after the highly anticipated Merge took place last month on 15th September.
In latest developments – Ethereum developers recently concluded a meeting where they are expected to consider eight Ethereum Improvement Proposals or EIPs for inclusion into the Ethereum Shanghai Upgrade. The development include everything from unlocking the staked ETH that was done prior to the Ethereum Merge. Other developments include EIP 4844 (proto-danksharding) to increase scalability of the network and also a set of 5 EIPs to upgrade the Ethereum Virtual Machine (EVM).

Read more on: Ethereum developers proposals for Shanghai Upgrade

Ethereum Merge: A recap

Before we get into Ethereum’s Shanghai Upgrade, let’s recap what happened a little over a month ago. On the 15th of September, 2022 – Ethereum – the largest smart contract capable blockchain network underwent one of the biggest transitions to ever happen in any crypto in history. The Ethereum network underwent something called the Merge which transitioned this behemoth of a network, second largest in the world by market cap – from a proof-of-work to a proof-of-stake consensus mechanism.

This is the first step in a long plan to transition Ethereum into the future, where gas fees are low, transaction speeds are high, at least at par with its competitors and eventually maintain its position as the biggest smart contract capable blockchain platform out there.

ETHEREUM SHANGHAI UPGRADE SECOND HALF OF 2023
FINAL ETHEREUM MAINNET MERGE 15 SEPTEMBER, 2022
BELLATRIX UPDATE 6 SEPTEMBER, 2022
SEPOLIA TESTNET UPDATE 22 AUGUST, 2022
GOERLI TESTNET MERGE 11 AUGUST, 2022
TENTH MAINNET SHADOW FORK 27 JULY, 2022
SEPOLIA TESTNET MERGE 6 JULY, 2022
MAINNET SHADOW FORKS 12 APRIL, 2022
KILN TESTNET MERGE 16 MARCH, 2022
ARROW GLACIER 9 DECEMBER, 2021
ALTAIR UPGRADE 21 OCTOBER, 2021
LONDON HARD FORK 5 AUGUST, 2021

Read more: Ethereum Merge

Ethereum Shanghai Upgrade: Explained

Very simply, Ethereum Shanghai Upgrade is set to introduce a bunch of critical updates and elemental changes to Ethereum in the blockchain’s EVM functionalities. Prior to the actual release, the Ethereum Foundation released on 14 October, 2022 a pre-Shanghai testnet for the same. This testnet, also known as ‘Shandong’ will be used to test and finalise the Ethereum Improvement Proposals (EIPs) that are expected to be rolled out in the actual Shanghai Update.

Why is Ethereum Shanghai Upgrade important?

Well, it is important due to several reasons and I will list them out for you below. However, it must be noted that these are calculated assumptions made with the available data. We will keep this section updated as we get more information regarding the upgrade.

  • Gas fees: One of the biggest things that the Ethereum Shanghai Upgrade is expected to bring about is to reduce gas fees for layer-2 solutions running on top of Ethereum, for example Polygon, Optimism and the likes. These L2 solutions make using Ethereum faster and cheaper and this upgrade could potentially make it even cheaper to transact on the Ethereum blockchain.
  • Withdrawal of staked ETH tokens: So ahead of the Ethereum Merge, all those who were interested to become a validator in the new PoS Ethereum Beacon chain, they had to stake a certain amount of ETH to a deposit smart contract which was locked in with the contract even after the Merge happened. But now with the Shanghai Upgrade, we may see the lock-in be released and those who had staked their ETH tokens may be able to unstake them.
  • Updates to smart contract facilities: This is another important update that can be expected out of the Shanghai Upgrade. Ethereum being the single largest smart contract capable blockchain network has to stay ahead in terms of development.

Here’s a GitHub repository post regarding the same with some additional information too.

Source: Github.com

Well, the release date for the Ethereum Shanghai upgrade hasn’t been properly confirmed yet. However, many sources say that it could happen anytime in the second half of 2023, some others say it could happen around September 2023 too. This however remains subject to change as we obtain more and more information on the same!
Additional Read: Ethereum Price Prediction
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