December 11, 2023

Ethereum developers have announced the launch date of the Shanghai update

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Ethereum developers have announced the launch date for the Shanghai update

Ethereum developers reported thatThe Shanghai hard fork could be activated in March 2023. This should allow users to withdraw funds locked in Ethereum 2.0 staking.

Thanks to the September mergerThe Ethereum network switched to a less energy-intensive Proof-of-Stake (PoS) consensus algorithm, and Ether owners now have the opportunity to stake their coins to generate income. However, users are still unable to return blocked assets. By
According to Dune Analytics, there are now more than 15.5 million ETH locked in Beacon Chain, which is 12.9% of the total amount of ethers.

Over the course of several months, developerswere thinking about what improvements should be included in the upcoming update called Shanghai. The highest priority turned out to be a function that will allow users to withdraw ethers from staking as quickly as possible. Due to this, the developers noted that if any improvements included in Shanghai slow down the patch rollout by March, they will have to be delayed until the next update.

One of these functions may be EVMObject Format (EOF) is an update to the Ethereum Virtual Machine (EVM), the software that allows you to run smart contracts based on this blockchain. The EVM has not been updated for over two years, but despite the urgent need for its modernization, the developers decided to postpone the issue during the Ethereum merger, since this could complicate and slow down the long-awaited event. The ideal scenario would be the implementation of EOF in the Shanghai update, the developers noted, but the first priority is to unlock ethers for staking.

Many developers hoped that ShanghaiAnother improvement will be included: the so-called proto-danksharding. This is a preview of danksharding, a process by which huge amounts of rollup data will be verified by only sampling small pieces of data. This will significantly simplify and increase the speed of data verification in layer 2 solutions for scaling the Ethereum network, such as Optimism and Arbitrum. However, this improvement will most likely have to wait.

According to CoinShares, due to the collapse of the exchangeFTX companies began to invest more in short ether positions. In November, Ether experienced a minor outflow of $0.8 million due to uncertainty regarding the Shanghai upgrade.