What is Shanghai Hard Fork?
Shanghai hard fork
ethereum
, also called “Shapella“, it was finalized on 12.4.2023. This upgrade Ethereum networks allow users who have acquired their Ether (ETH)“, to secure the network and validate transactions, to withdraw or withdraw their funds. The upgrade was launched at 10:27 p.m. UTC and finalized around 10:42 p.m. About half an hour after activation Shanghai, according to data beaconcha.in, 285 withdrawals were processed out of a total of 5413 eth, which is worth just over ten million dollars. This upgrade finalized the years-long-awaited transition Ethereum with proof of work mechanism for verifying transactions on proof-of-stake. The first step was the so-called “Merge
“, where Ethereum stopped using PoW, and the finalizing step was to allow the withdrawal of funds of users who locked or “acquired” their Ether.
Source: cointelegraph
Proof of work and proof of stake
Proof of work (PoW) and proof of stake (PoS) are two consensus mechanisms used in blockchain
. technology to verify transactions and create new blocks. At PoW,miners compete in solving complex mathematical problems to verify transactions and receive rewards in the form of cryptocurrency . This process is energy intensive and requires expensive equipment. On the other hand PoS selects validators to create new blocks based on the amount of cryptocurrency they own and have “acquired” as collateral. PoS is less energy intensive and cheaper than PoW-and. It also encourages long-term investment in cryptocurrency instead of short-term mining. However PoS is not time-tested as PoW, and there are also concerns regarding centralization given that pos cannot achieve a degree of decentralization as with PoW. Time will tell if this is a move. Ethereum would be smart, or staying on PoW would be a better decision.
Source: cointelegraph
What's next for Ethereum?
At a live broadcast during the Shanghai upgrade, Vitalik Buterin, co-founder of the Ethereum blockchain, stated the following: “We are at a stage where the hardest and fastest parts of the Ethereum protocol transition are mostly over. There are still very important things to be done, but these very important things can certainly be done at a slower pace.” Buterin said scaling – speeding up and cheapening transactions – will be the next problem that blockchain will after Shanghai. “If we don’t solve the scaling before the next Bull market, we know that people will stay paying for transactions of five hundred dollars.”
Source: cointelgraph
Is there pressure on sales?
Since Beacon Chain was launched in December 2020. years, “stejkano“, i.e. more than 18 million ETH is locked (about 15% of ether’s total supply ). Now that Shanghai has been successfully executed, the approximately 1.1 million ETh collected as rewards can be immediately withdrawn and therefore sold. A number of analysts predicted that unlocking ETH would lead to huge sales, but instead of falling in price, Ethereum He had a jump of more than 10%. This is probably related to the fact that the upgrade went without any interference, and only collected rewards were unlocked, not all locked Ether. Nevertheless, there is the possibility of additional sales pressure on the part of entities facing financial pressure or have gone bankrupt. Celsius The network, which went bankrupt in the middle of the previous year, could sell its Ether to the tune of 158,176 ETH to return some of the funds they lost to users. U.S. Crypto Exchange The Kraken recently agreed to shut down its operations “to solve the SEC (Securities and Exchange Commission) allegations, meaning it will likely have to take out all 1.2 million locked Ether. What we can see for now is that this sales pressure will be distributed for a few days or even weeks, which will be much easier to absorb by the market than the sudden sale in one day that most analysts predicted.
Source: cointelegraph
