• Ethereum developers have agreed to push the Shanghai/Capella upgrade to early April.
• The upgrade will allow validators to withdraw staked ETH that have been stored since December 2020.
• Other anticipated upgrades are focused on increasing transactions speeds and lowering gas fees.
The Upcoming Ethereum Shanghai/Capella Upgrade
Ethereum’s core developers have decided to move up the launch of the Shanghai (also known as “Shapella”) upgrade from late March to an earlier date in April. This hard fork marks a major milestone for Ethereum, as it is the first step towards transitioning from a proof-of-work (PoW) consensus layer to a proof-of-stake (PoS) mechanism.
Testing of the Upgrade
Before deploying it on the mainnet, the Sepolia testnet was used for limited testing purposes, allowing only for validator nodes operation. On March 14, 2023, the Goerli testnet will be used for further testing and development – this network allows for more varied functions such as smart contracts and decentralized applications testing, including phased withdrawal of Ether (ETH). If everything goes smoothly during this test phase, another All Core Developers Execution (ACDE) call is planned for March 16th where they will likely set a definite launch date for Shapella on the mainnet.
Anticipated Effects of Shapella
The successful implementation of Shapella is expected to bring about bullish momentum in ETH prices due to decreased volatility points caused by ETH staking. Additionally, liquidity staking platforms are anticipated to benefit immensely from this upgrade as it will enable them to offer higher rewards with lower risk levels associated with their products.
Increased Transaction Speeds & Lower Gas Fees
Overall, Shapella stands out as an important update for Ethereum’s ecosystem as it brings about numerous improvements that can potentially improve user experience while also providing increased security measures and cost savings compared to traditional proof-of-work networks. The projected launch date remains unknown at present but can be expected sometime within early April 2021 upon successful completion of tests conducted on Goerli’s testnet prior thereto.