On Wednesday, Ethereum, the blockchain that supports the second-largest cryptocurrency ETH, accomplished its highly anticipated ‘Shanghai’ upgrade with great success. Dubbed ‘Shapella,’ this update allowed validators to withdraw staked ETH for the first time, marking a significant milestone in Ethereum’s multi-year journey towards becoming a complete proof-of-stake network. This achievement brings Ethereum one step closer to its ultimate goal, and the successful implementation of the upgrade is a testament to the platform’s unwavering commitment to innovation and progress.
In a proof-of-stake framework, individuals commit their coins as an assurance to facilitate the authentication of fresh data on the blockchain in exchange for incentives, a procedure known as staking. Only after the recent update on Wednesday was the retrieval of staked ETH or the redemption of accumulated rewards feasible.
According to Dune Analytics, the current amount of staked ETH represents 15% of the total Ether token supply, with a value of roughly $31 billion. Despite initial concerns of a potential drop in price following the upgrade, ETH has increased by 2.28% in the past 24 hours, proving resilient against any anticipated selling pressure.
During a live-streamed launch event on the Ethereum YouTube channel, Vitalik Buterin, the co-founder of the Ethereum blockchain, shared his insights on the current state of the protocol. He stated that the most challenging and time-consuming aspects of the Ethereum protocol’s transition had been successfully completed. While significant tasks are still to be accomplished, they can be executed at a more measured pace without compromising safety or efficiency. Buterin’s remarks reflect the maturity and stability of the Ethereum ecosystem, which continues to evolve and innovate.
Ethereum’s roadmap is set to prioritize scalability, according to Buterin. The focus is on enhancing the cost and energy efficiency of transactions to avoid the potential of users being stuck with $500 transactions during the next bull run. Buterin emphasized the importance of implementing Verkle Trees before the next bull run, as it would mitigate the issue of high transaction costs. The team is committed to addressing these challenges to ensure a seamless user experience.
