The Goerli network has enabled Ethereum's #Shapella update, which allows for the unstaking of ETH. The hard fork was not smoothly implemented because testnet validators lacked motivation to upgrade their client software. The mainnet upgrade, which includes various changes, is anticipated to begin next month.

The hard fork had problems even though it had been activated successfully on the Goerli testnet because some testnet validators had not updated their client software in advance of the fork. The testnet's ETH is "worthless," according to Tim Beiko, an Ethereum core developer, thus testnet validators have "less incentive" to upgrade. Nevertheless, he anticipates that validators will make the necessary changes prior to the fork on the Ethereum mainnet.

After some delays in preparing the Sepolia and Goerli testnets for the split, Shapella's activation on the Ethereum mainnet is planned for early April. By allowing both partial and full withdrawals, the hard fork will release 17.6 million ETH, or more over $30 billion at the present rate.

On the other side, the #Ethereum Foundation has previously said that numerous measures have been taken to prevent a rush of ETH supply from hitting the market after the update has been put into place.

For instance, while only about 2,200 withdrawals are permitted each day, the total number of withdrawals permitted over a 24-hour period will only represent about 0.40% of the total amount of #ETH staked. This is because processing an epoch takes roughly five or six minutes, and an epoch can only have a maximum of ten validators assigned to it.

#Ethereum developers have announced that the date previously set for the #Shapella upgrade has been confirmed.

In the last meeting, developers agreed on April 12th as the date for the #Ethereum mainnet upgrade. After the official consensus was reached following the final checks, it was confirmed that the Shapella upgrade will take place on April 12th.

The Ethereum Foundation, which shared the details of the network upgrade, reported that the Shapella upgrade will take place at the 194,048th network epoch. Given that an epoch consists of 32 blocks, it was calculated that the upgrade process will take place on April 12th at 01:27 (GMT+3).

Initially, the community focused on the Shanghai upgrade in the Ethereum network. Later, another upgrade called Capella was also proposed. Thus, while the upgrade for the consensus layer on April 12th will be Shanghai, the execution layer upgrade will be called Capella.

Looking at the network upgrade process as a whole, the Shapella upgrade will enable the integration of the EIP-4895 improvement proposal into the Ethereum network. The upgrade, which will also optimize the commission amount for certain transactions, will allow for the release of locked #ETH in the network.

After the upgrade date was approved by consensus, it was reported that the $500,000 bug bounty program announced to detect security vulnerabilities in Shapella will continue until April 5th.

While Ethereum investors continue to count down to the biggest network upgrade after Merge, the ETH price continues to move according to market dynamics. In recent days, the $1,730 region has been supported as a key level for Ethereum, and after testing the $1,700 level briefly this week, #ETH has risen to $1,800 with a 5% increase since yesterday.

The #Shanghai upgrade timing has been confirmed by the #Ethereum Foundation team. The #Shapella hard fork will take place on April 12, 2023, at 22:27:35 UTC, at epoch 194048, based on the blog post. An epoch in Ethereum is a grouping of 32 network blocks.

The timing for the upgrade implementation to enable #ETH staking withdrawal was previously confirmed by Ethereum engineer Tim Beiko on March 14, when Shanghai was successfully tested on the most recent testnet, Goerli.

The majority of the crypto world formerly referred to this release as Shanghai. However, this renaming is intended to properly state the reason for each Ethereum network change. The Execution Layer and the Consensus Layer are the two sections of the Ethereum protocol.

The timing for the upgrade implementation to enable ETH staking withdrawal was previously confirmed by Ethereum engineer Tim Beiko on March 14, when Shanghai was successfully tested on the most recent testnet, Goerli.

The majority of the crypto world formerly referred to this release as Shanghai. However, this renaming is intended to properly state the reason for each Ethereum network change. The Execution Layer and the Consensus Layer are the two sections of the Ethereum protocol.

Prior to that, in August 2021, London implemented EIP-1559, which substituted a flat fee for the prior pricing auction process. The basic fee is burned, resulting in ETH's gradual depreciation even though validators still receive a block reward and tip.

This news is republished from https://coinaquarium.io/

Exchanges and platforms are beginning to shift as the Shanghai and Capella renovations draw nearer. One of the first exchanges to maintain its lead was Binance.

Since #ETH #staking withdrawals will be made possible by the upcoming Ethereum Shanghai and Capella upgrades (Shapella upgrade), Binance will make ETH redemptions on the ETH 2.0 Staking page available within a week of the feature becoming available on the Ethereum network.

Those who have participated in ETH 2.0 staking will be able to convert BETH to ETH at the ETH 2.0 staking page at a 1:1 ratio once the feature is available.

Long-term ETH holders can still stake ETH 2.0 at any moment and get BETH rewards after the Shapella update, though.

After the #Shapella upgrade is finished, the exchange promised to give users more detailed notice.

During Ethereum's last The Merge update, #Binance was one of the first exchanges to declare support for the Shapella upgrade.

The Proof-of-Stake (PoS) technique has been supported by the exchange as well for ETH staking.

Due to limitations on the #Ethereum network's capacity for processing transactions, Binance will impose daily ETH redemption limits for each user. According to the exchange, a waiting list for ETH redemption is also anticipated. The Ethereum network and the demand for ETH staking withdrawals at the time of redemption control how long it takes to process withdrawal requests for the cryptocurrency.

Tim Beiko, an Ethereum developer, yesterday announced the upgrade implementation timeframe for withdrawing ETH staking would occur at 10:27 AM UTC on April 12 after Shanghai was successfully tested on the final testnet, Goerli, on March 14.

Over 17.5 million of these so-called staked Ether coins, worth $30 billion at the time of writing, are currently unavailable on the network, despite the fact that they nevertheless generate income for their owners.

At the Ethereum Developer Conference on March 30, Ethereum core developer Tim Beiko provided updates on the upcoming Shapella upgrade, as well as several other Ethereum Improvement Proposals (EIPs) that are being considered for implementation.

The testing of the Shapella upgrade is now in its final stages, with a last mainnet shadow fork scheduled for next week, along with cross-client EVM fuzzing of the latest releases.

Beiko emphasized the importance of running the latest version of the client software. For example, ErigonEth has had a version update since the initial announcement, and users should be running version 2.42.0 to ensure compatibility with Shapella. Similarly, Lodestar has put out a new, optional release, and Prysm might do so as well prior to the upgrade.

One of the EIPs discussed at the conference was the EIP for Elimination of Gas Observers (EOF), which aims to address concerns about code and gas observability in Ethereum contracts. The latest version of the EOF spec attempts to remove these as much as possible from EOF contracts, but implementing the spec requires significant alterations to contract creation and disabling or modifying several opcodes. Teams expressed some skepticism about the feasibility of implementing EOF alongside the EIP for Transaction Type 4844 in Cancun, and there were proposals to potentially schedule it for the next fork.

Another EIP discussed at the conference was EIP-6780, which proposes new rules for the SELFDESTRUCT opcode. According to Beiko, EIP-6780 would follow the rules laid out in EIP-4758, except when SELFDESTRUCT happens in the same transaction as a contract creation. This would strike a balance between implementation complexity and not breaking deployed contracts.

Alex Stokes gave an update on trust-minimized CL access by the EL, which proposes providing access to the CL’s state roots on the EL. However, to verify proofs, access to the CL’s Generalized Index is also needed. Stokes proposed three options to address this issue, and teams will be looking into this in the coming weeks.

Finally, there was an unscheduled update by Guillaume Ballet on Verkle Tries, which sparked debate about its readiness relative to EOF. Ballet shared that there are currently two Verkle Tries testnets running, one of which implements CL changes. The implementations are currently 40% slower than MPT, but are improving rapidly. There were also questions about whether all clients could implement Verkle Tries without relying on a similar data model to ErigonEth. Ballet stated that it is possible, but would require relying on these nodes to gossip.

Overall, the Ethereum Developer Conference provided valuable insights into the progress being made on several important EIPs and upgrades, and emphasized the importance of running the latest client software to ensure compatibility with upcoming changes.

#Ethereum #ETH #Shapella #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

Estimated reading time: 7 minutes ⏳

#Ethereum2024 #DeFi #Shapella

The Ethereum network has witnessed a landmark achievement with over 25% of its total supply, exceeding 30.1 million ETH $ETH , now securely staked post-Shapella upgrade, representing a value of approximately $73 billion. This pivotal development signals not just the community's unwavering faith in Ethereum's Proof-of-Stake (PoS) mechanism but also heralds a new era of liquidity and flexibility in staking practices.We embark on a journey to unravel the facets of this staking milestone and the evolving restaking narrative reshaping the DeFi landscape.
Staking Surge and Shapella's Impact:

The Shapella upgrade has catalyzed a significant shift within the Ethereum ecosystem, enhancing the staking landscape by introducing withdrawal functionalities that bolster both liquidity and flexibility for stakers and validators. Despite the newfound withdrawal capability, Ethereum sees a relentless growth in staking rates, indicative of the community's robust commitment to the network's future. Innovations by liquid staking solutions like Lido and Rocket Pool have democratized access to staking, enabling participants to stake amounts less than the erstwhile 32 ETH threshold and utilize staked assets within DeFi realms.
The Rise of Restaking and Liquid Staking Derivatives (LSDs):

2024 heralds the advent of restaking, a novel narrative in the DeFi space, allowing Ethereum holders to amplify their capital efficiency and contribute to multiple protocols' security simultaneously. This narrative is supported by platforms like EigenLayer and underscored by the introduction of categories for restaking tokens by CoinGecko, signifying the burgeoning interest and market potential in restaking. However, the journey into restaking comes with its complexities and necessitates a balanced approach towards understanding the risks, especially in light of previous DeFi schemes.
Looking Ahead: The Future of Ethereum's Staking Ecosystem:

As Ethereum's staking ecosystem evolves, marked by the substantial inflow post-Shapella and the intrigue surrounding restaking, it stands at the cusp of redefining DeFi's future. The ongoing commitment to staking, despite the potential for increased withdrawals, and the dynamic landscape of LSDs, present a promising yet challenging road ahead. The concentration of staked ETH among major entities and the burgeoning restaking sector underscore the critical need for maintaining network decentralization and fostering a sustainable, risk-aware DeFi environment.

Ethereum's significant staking milestone post-Shapella upgrade and the emerging restaking narrative highlight a transformative period in the DeFi space, characterized by growing investor confidence, enhanced liquidity, and novel yield-generation strategies. We delve into these developments, offering insights into their implications for Ethereum's ecosystem and the broader cryptocurrency landscape. Amidst these advancements, the community's vigilance and commitment to decentralization and sustainability remain paramount in navigating the evolving terrain of digital finance.
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Disclaimer:

👉Please note that the insights and discussions presented in this article are for informational purposes only and should not be construed as financial advice. 'The Crypto Sage' seeks to illuminate the dynamic world of cryptocurrency through analysis and storytelling, aiming to educate and inspire our readers. As the digital asset landscape is highly volatile and subject to rapid changes, we encourage all investors to conduct their own thorough research, consider their financial situation, and, if necessary, consult with a professional financial advisor before making any investment decisions. Venture wisely into the realm of cryptocurrencies, armed with knowledge and prudence.
References:
ClayStack. (n.d.). Decoding The Hype: Is Liquid Restaking 2024’s Biggest Web3 Narrative? Panel Recap. ClayStack. Young, M., & Baird, K. (2024, January 11). Ethereum Restaking Could Become the Next Big 2024 Crypto Narrative. BeInCrypto.Thomas, D. (n.d.). Why Restaking Yields Won't Cause a DeFi Ponzi This Time. BeInCrypto. CoinGecko. (n.d.). What Is Restaking and How It Enables Capital Efficiency. CoinGecko.
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As Ethereum finalizes its transition to a proof-of-stake (PoS) consensus mechanism with the upcoming Shapella fork, approximately $34 billion of locked, staked Ethereum (ETH) will become available for withdrawal by validators. The imminent unlock has led to speculation about the potential impact on the cryptocurrency market, especially considering that much of the locked volume is already liquid due to staking liquidity providers.

Staking liquidity providers have been issuing liquid tokens in exchange for locking Ethereum in contracts, allowing investors to access and trade their staked assets without needing to wait for the unlocking event. This has created a situation where a significant portion of the locked, staked Ethereum is already circulating on the market, potentially reducing the immediate impact of the $34 billion unlock.

Ethereum is about to finalize its transition to proof of stake with the upcoming #Shapella fork. This will enable $ETH staked to be withdrawn by validators, allowing $34B of currently locked staked ETH to enter the market. How will the price react? pic.twitter.com/IyOm38kAdE

— IntoTheBlock (@intotheblock) April 10, 2023

However, it is still uncertain how the market will react to the unlocking event, as some investors may choose to sell their newly accessible Ethereum holdings, potentially putting downward pressure on the price. Others may decide to hold onto their Ethereum, anticipating further price appreciation as the network continues to evolve and improve with the transition to PoS.

The shift to a PoS consensus mechanism is expected to make Ethereum more energy-efficient, scalable and secure. This could result in increased demand for the cryptocurrency, as more developers and users are drawn to its improved capabilities. In the long term, the successful implementation of PoS could bolster Ethereum's position as the leading smart contract platform, driving further adoption and demand for the digital asset.

As more Ethereum is staked and withdrawn from contracts, the supply-demand dynamics could shift, potentially leading to an increase in the value of the asset.

#ETH #Ethereum #crypto2023 #Binance