#eth2.0 #shapella #dyor #hongkongweb3

Cryptocurrencies have been around for over a decade now, and while they have seen impressive growth, they have also had their fair share of challenges. One of the major challenges that have plagued cryptocurrencies like Ethereum is scalability. Ethereum 2.0, also known as Shapella, aims to address this and other issues by introducing new features that will enhance its capabilities. This article explores the benefits that Ethereum 2.0 Shapella will bring to the crypto space.

What is Ethereum 2.0 Shapella?

Introduction to Ethereum

Ethereum is a decentralized, open-source blockchain-based platform that enables developers to build and deploy decentralized applications (DApps). It was created in 2015 by Vitalik Buterin and has since become one of the most widely used blockchain platforms in the world. Ethereum's native currency is Ether (ETH), which is used to pay transaction fees and incentivize network participants.

The Need for Ethereum 2.0

One of the major limitations of Ethereum is scalability. Ethereum's current architecture can only process up to 15 transactions per second, which is significantly lower than the transaction throughput of traditional payment systems like Visa and Mastercard. Ethereum 2.0 aims to address this limitation by introducing a number of new features that will improve its scalability, security, and sustainability. Ethereum 2.0 will be implemented in multiple phases, with Shapella being the first phase of the upgrade.

How Ethereum 2.0 Shapella Will Improve the Crypto Space

Enhanced Scalability

Shapella introduces a new consensus mechanism known as Proof of Stake (PoS), which replaces the existing Proof of Work (PoW) consensus mechanism. PoS is more energy-efficient and allows validators to participate in the network without having to perform complex calculations like those required in PoW. This makes it possible to achieve higher transaction throughput while using less energy.

Improved Security

Ethereum 2.0 Shapella also introduces new security features that enhance the overall security of the network. One of these features is the use of shard chains, which break down the network into smaller, more manageable parts. This reduces the risk of a single point of failure and makes it more difficult for hackers to attack the network.

More Sustainable

Ethereum 2.0 Shapella also introduces improvements in sustainability. The new PoS consensus mechanism requires less energy to operate, which makes it more environmentally friendly than PoW. This is an important consideration given the growing concern over the impact of cryptocurrencies on the environment.

Increased Interoperability

Shapella also introduces improvements in interoperability. The new version will allow for better communication between different blockchain platforms, making it easier for developers to build decentralized applications that can communicate with other platforms. This will make it easier to create more complex DApps that can operate across different blockchain platforms.

Better User Experience

Ethereum 2.0 Shapella also introduces improvements in the user experience. The new version will make it easier for users to participate in the network by allowing them to stake their ETH and earn rewards. This will encourage more people to participate in the network, which will help to further decentralize the network and increase its security.

Conclusion

Ethereum 2.0 Shapella represents a significant upgrade for the Ethereum network. The new features that it introduces will improve the scalability, security, and sustainability of the network, making it a more robust and reliable platform for developers and users alike. As the crypto space continues to evolve, Ethereum 2.0 Shapella will play an important role in shaping its future.

The second largest crypto blockchain Ethereum is preparing for a new upgrade that will reduce transaction fees on the network. The upgrade tagged “Dencun” will also introduce more use cases for #Ethereum . 

Notably, Ethereum Foundation made the announcement of Dencun upgrade just three weeks after the #shapella upgrade.

With the upcoming Dencun upgrade, Ethereum network users can now transact with lower fees. 

Introducing Dencun Upgrade – What You Need To Know

The upcoming Dencun upgrade will feature Ethereum Improvement Proposals (EIPs). These are proposals that aim to bring changes to the network. The Ethereum community usually reviews the proposals to accept or reject them.

If the community accepts the EIPs, they become a part of the Ethereum network codes. The Dencun upgrades have four proposals, including EIP-1153, EIP-6475, EIP-4844, and EIP-6748. 

The first proposal is EIP-4844 or Proto-Danksharding or The Surge. The Surge aims to bring in “data blobs” for Layer 2 solutions to post transaction and proof data instead of CALLDATA. 

The blobs offer lower gas costs since they’re never stored on the blockchain permanently. The blob aims to lower the transaction fee on Ethereum. 

Other Dencun Proposals Bring Diverse Changes

The second important proposal for review is the EIP-6780. This proposal is to deactivate the SELFDESTRUCT opcode but still preserve its functionality. EIP-6780 proposal will allow the creation and erasure of contracts in a single transaction but not delete the contract code or storage.

The third proposal is EIP-1153 which will bring two new opcodes, TSTORE and TLOAD, to the network. The developers aim to provide transient storage that will be cleared once a transaction ends. This will add more use cases, from re-entry locks to single-transaction ERC20 approvals.

The fourth proposal is EIP-6475: SSZ Optionals. This change supports EIP-4844 since it defines one of its SSZ elements in the transaction format. The aim is to facilitate forward compatibility with SSZ objects that will be introduced to the network. 

While the four proposals above remain the major ones, the development team has others that might be considered too. One of the probable ones is EIP-2537: Precompile for BLS12-381 curve operations.

#eth2.0

According to reports, Ethereum developers are in the final stages of planning the next major upgrade.

The EIP-4844, which introduces “Proto-Danksharding” to Ethereum, is expected to occur during the Cancun hard fork.

The Ethereum roadmap remains extensive with several significant upgrades still in the pipeline. Over the next six months, Ethereum has planned upgrades to staking withdrawals, as well as various new applications that will enhance the blockchain’s security and provide a better user experience.

With the implementation of Proto-Danksharding, a new feature called “data blobs” will be introduced. These blobs can be sent and attached to blocks, but they are not accessible to the EVM and are automatically deleted after a fixed period of time. This will enable rollups to send data at a reduced cost, resulting in lower transaction fees for users.

Another new development users and engineers are planning is what is known as Distributed Validator Technology (DVT). Crypto staking ecosystem provider Obol Labs is working on a DVT solution that it plans to deploy by 2024.

The third milestone involves proposer-builder separation (PBS), which aims to address MEV attacks (maximal-extractable-value). PBS aims to create a “division of labor between two crucial tasks of block-building: proposing a block, and building it,” Bankless further explained.

How does Ethereum Governance Work?

Typically, ideas in the Ethereum community originate from lively discussions on forums such as ethresear.ch, Ethereum magicians, or the ETH R&D discord server.

These conversations might arise in response to newly identified vulnerabilities, proposals from application layer organizations such as dApps and exchanges, or even to address known user frictions such as high costs or slow transaction speeds.

Once these ideas have matured, they may be submitted as Ethereum Improvement Proposals (EIPs) and are subject to public scrutiny. This ensures that the entire community has an opportunity to provide input at any point in the process.

At press time, Ethereum (ETH) traded at $1,894.77 with a 24-hour low/high range of $1868.6 to $1915.

Ethereum Weekly Price Chart (Source: CoinMarketCap)

Over the past seven days, the low/high range has remained consistent at $1,870.41 to $1,919.17. The trading volume stands below $7 billion, and Ethereum holds a market cap of $228 billion, exhibiting a market dominance of 18.344%. Since the implementation of the Shapella upgrade, Ethereum has outperformed Bitcoin by 15% in gains.

#shapella #ETH #crypto2023 #Binance #eth2.0

Bitcoin and ETH have taken market share from Altcoins, most of which have underperformed throughout their recent runs.

Following the Shapella upgrade this week, Ether prices have surpassed the psychological $2,000 threshold, resulting in a decline in Bitcoin’s market dominance.

According to data from the analysis website btctools.io, Ether’s market share rose to 19.8%, an increase of over 1.1%, in the 24 hours before the time of writing on April 14, while Bitcoin’s dominance declined by less than 1%. Since the beginning of the year, ETH has gained 7.6% of the market share.

Ethereum’s market share has increased while Bitcoin’s has decreased to 47.7%. The post-Shapella ETH rally has reduced BTC’s market share to levels not seen in nearly two years.

#ETH #shapella #crypto2023 #Binance #dyor

Ethereum's native coin, ether, is trending higher following the blockchain's Shapella upgrade.

Ether was trading hands for $1,970 by 5:08 a.m. EDT — up 2.75% over the past five hours, according to Binance data via TradingView. The move follows Ethereum's first significant upgrade since The Merge, Shapella, which was completed around 6:30 p.m. EST last night.

The price of ETH has increased following Shapella. Source: TradingView

The Shapella upgrade made it possible to withdraw staked ether on the network for the first time. Now that stakers can withdraw ether, the blockchain has completed its transition to a proof-of-stake consensus mechanism.

Over 822,000 ether is pending withdrawal, with a dollar value of around $1.6 billion, according to the token.unlocks application. Earlier today, the dollar value amounted to $1.34 billion.

However, the potential sell-side pressure has done nothing to deter traders, with ether volumes increasing as the price approaches pre-Merge highs. Volumes of the most popular trading pair, ETH/USDT on Binance, topped $1.28 billion in the past 24 hours, according to CoinGecko data.

Ethereum liquid staking tokens are also surging

Ethereum liquid staking governance tokens also appeared to benefit from the successful upgrade.

The three most-prominent governance tokens for liquid staking protocols have all jumped 5.2% in the last 24 hours, according to CoinGecko. The tokens — Lido DAO, Rocket Pool, and Frax Ether — are up between 3% and 3.2% over the past seven days.

Liquid staking protocols allow users to stake ether and receive a derivative token representing the previously locked cryptocurrency. Users can then use their liquid staking token like any other cryptocurrency.

#ETH #shapella #crypto2023 #Binance #crypto