Ethereum Big Update: Shanghai Hard Fork: What's New?

One event that cryptocurrency investors have been keeping an eye on and cite as one of the key events of 2023 is Ethereum's Shanghai Hard Fork update that took place this March. In this article, I will tell you how important the Shanghai Hard Fork is to Ethereum and what will happen next. Let's have a look.

the importance of Shanghai Hard Fork

The Shanghai Hard Fork marks Ethereum's first major update since The Merge update in 2022 that changed its consensus system. Proof-of-Work to Proof-of-Stake This allows the Ethereum network to reduce energy consumption by up to 99% and lays the foundation for the future Ethereum 2.0.

But what makes investors keep a close eye on the Shanghai Hard Fork update? This is because this update will allow those who previously deposited (Stake) ETH coins in Beacon Chain to withdraw the rewards obtained from staking coins. The market is watching to see if there will be a sale of coins to make a profit, causing the price of ETH to be brought down or not. First of all, we have to tell you back in December 2020. At that time, Ethereum developers created the Beacon Chain network, which is a network that uses the system. Proof-of-Stake And allows ETH coin holders to deposit their coins in Beacon Chain to join as a validator node to help test various functions and systems. You must deposit at least 32 ETH and will receive rewards for performing your node duties. System auditor Proof-of-Stake will also be available, but the deposited coins or rewards will not be withdrawn until the maturity date.

Since the developers opened the deposit of coins on Beacon Chain, more than 2 years have passed, and the number of coins locked on Beacon Chain in the Proof-of-Stake system has changed. The total amount of coins distributed is more than 16 million ETH, or 2.59 billion dollars (based on ETH price as of February 28, 2022), while the total number of coins distributed as rewards for locking coins totals more than 1 million ETH. More than 1 million prize coins have been unlocked for withdrawal in the Shanghai Hard Fork update.

Another interesting update of Shanghai Hard Fork

While allowing the withdrawal of staking rewards seems to be the top priority for investors, the Shanghai Hard Fork comes with an equally interesting update. Especially for developers, the first is an update to reduce gas costs on the network. In which various proposals (EIP) have been implemented, including EIP-3651, which will reduce gas fees related to the use of the COINBASE function (not related to the name of the foreign exchange), which is a function that developers use to Create a new token. Proposal EIP-3855 would reduce gas fees for developers by combining EIP-3860 with EIP-6049 that would impose a ceiling on gas fees for certain uses.

As you can see, this update is also focused on tackling Ethereum's high gas costs, but it will be focused primarily on developers. This is to reduce developer barriers and encourage the development of more new applications and use cases on Ethereum.

What's after Shanghai Hard Fork

The main goal of Shanghai Hard Fork is to enable withdrawal of rewards from staking coins first. This makes for other interesting developments. has been postponed to the 3rd quarter of 2023.

The next most likely update is: “Proto-danksharding,” as it is known among Ethereum developers, is an update that introduces sharding so that the network can be divided into smaller units. This causes parallel processing (Parallel Processing) and increases the overall speed of the network.

Another interesting thing is the EVM Object Format (EOF) update, which is an update to the Ethereum Virtual Machine (EVM) that developers use to write applications in the Solidity language to be more efficient. Including adding new features to the application as well.

conclude

Ethereum's Shanghai Hard Fork update allows former Stakers on Beacon Chain to withdraw their deposit rewards. The market is therefore keeping an eye on whether these unlocked coins will be sold off and push down the price of ETH. In addition to allowing withdrawals, Shanghai Hard Fork also comes with an update that focuses on reducing Gas costs for various uses On the developer side as well As for the next update What is worth watching is the introduction of Sharding on Ethereum and the addition of new features to the Ethereum Virtual Machine (EVM).

refer Bitkub Blog, decrypt, The block, Fig

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