Tim Beiko was a guest on the podcast “Unchained” hosted by Laura Shin, where he highlighted the influence of the Shapella update for ethereum on the decentralization of the network and validator staking.
Since validators can now remove their stakes from the Beacon chain, the change, as noted by Beiko, greatly “de-risks” the practice of staking for ethereum.
Ethereum’s Shapella upgrade allows validators to finally withdraw their stakes from the beacon chain.
@TimBeiko says that significantly “de-risks the network” and could invite more staking. Do you agree?
— Laura Shin (@laurashin) April 14, 2023
Beiko on why the update will improve staking
Beiko explained how the Shapella improvement might induce a reorganization of the staking providers. Because it is so simple to withdraw funds, validators may switch from centralized exchanges to liquid staking projects or give solo staking a go. This is because the simplicity of withdrawal lowers the possible dangers involved.
In addition, the update makes it possible for validators to accumulate rewards directly on their validators, which were previously unavailable on the Beacon chain. In addition, Beiko voiced their optimism that the improvement will increase the number of lone stakers entering the network.
However, this new improvement demonstrates that withdrawals are feasible and lessens the commitment validators have to make, enabling them to experiment with betting with increased self-assurance and convenience.
The recent improvement to Shapella has made the procedure more accessible for people who may have been reluctant to stake it. This is because the tutorials have been enhanced, and functionality for setting up validators has been included.
The notion of coordinated penalties on the ethereum network also favors decentralization. The creator thinks that the upgraded version of Shapella can encourage more staking on the ethereum network and enhance decentralization.
Read more: Ethereum price surpasses $2,100 following the Shapella upgrade
