The most anticipated Ethereum Shanghai Update which was scheduled for March 2023 is rescheduled by the Ethereum core developers. The ETH Shanghai Update Delayed decision was made in the Ethereum core developers meeting on March 02.
During the meeting, the core developers noted that the network would initially deploy the Shapella Fork on the Goerli Testnet on March 14. This will delay the implementation of the Shanghai update by three to four weeks.
Key Takeaway:
- What is Ethereum Shanghai Upgrade?
- Why the implementation of Shapella Fork will delay the deployment of the ETH Shanghai Update?
- Why did the rescheduling of the Shanghai update put the Ethereum network under Jeopardy?
What ETH Shanghai Upgrade Is?
The Ethereum Shanghai Upgrade is a hard fork that marks the protocol’s first significant upgrade since ‘The Merge’ in 2022. The major goal of this upgrade is to allow stakers and validators to withdraw staked ETH from the Beacon Chain.
Meanwhile, how this will transpired is described in the ‘Ethereum Improvement Proposal’ (EIP-4895). The EIP-4895 will allow validators to withdraw ETH staked as far back as December 2020. At that time, the Beacon Chain was initially established.
In addition to EIP-4895, the Shanghai fork has several other EIPs. The majority of those EIPs are attempting to reduce gas costs for Ethereum developers. So, the following proposals are:
- EIP-3651: Warm COINBASE
- EIP-3855: PUSH0 Instruction
- EIP-3860: Limit and Meter Initcode
- EIP-4895: Beacon Chain Push Withdrawals as Operations
- EIP-6049: Deprecate SELFDESTRUCT
However, the Shanghai fork will not implement the most anticipated sharding proposal EIP-4844. This proposal will allow for the scaling of the Ethereum network by the Sharding. Reports reveal that the EIP-4844 is expected to transpire in the second half of 2023.
So, coming back to the topic, experts believe that the implementation of the Shanghai Upgrade will definitely assist the ETH holders. This will provide the holders greater access to their holdings. But the unexpected rescheduling delays the anticipation of the ETH holders.
Why Shapella Fork pushed the ETH Shanghai Upgrade?
So, before diving deep into the topic, let’s first understand what Shapella Fork is. The Shapella upgrade is also known as Shanghai-Capella Upgrade. This is a network upgrade that primarily aims to facilitate ETH withdrawals from the deposit contract.
In addition to that, it will also introduce new functionality to both the execution and consensus layers. This will allow ETH holders to withdraw their stake from the Beacon Chain to the execution layer. But why did the implementation of the Shapella upgrade push the execution of the ETH Shanghai Upgrade?
Basically, the Shanghai Capella upgrade on Goerli would serve as a dress rehearsal for the Shanghai mainnet launch. This will allow developers to make sure they had ample time to verify that the upgrade was working properly.
So, for this particular reason, the full fledge implementation of the ETH Shanghai Update will take at least three to four weeks.
How did the rescheduling put the Ethereum holders in jeopardy?
As we all know that the anticipation of the ETH Shanghai Upgrade was at its peak level in the past few months. But the unexpected rescheduling significantly affected the sentiments of the ETH holders toward the network.
These sentiments can also be seen in the price of Ethereum which drops by 5.26% after the rescheduling announcement. Meanwhile, at the time of writing, the ETH price was trading at a price of ₹1,27,895 which drops by 0.6% in the last 24 hours as per CoinMarketCap Data.
Several crypto technical analysts believe that if the Shanghai Upgrade will push again it will definitely affect the price of Ethereum.
What to expect next?
In the past few years, several Ethereum upgrades have frequently been planned but then delayed. This indicates that the network is facing multiple issues while implementing new upgrades. This prompted users to shift their stance towards a new blockchain network.
However, by successfully implementing the merge upgrade last year the network slowly starts regaining its user’s confidence again. This indicates that the deployment of the ETH Shanghai Upgrade is a crucial factor for the ETH blockchain network.
Meanwhile, if the ETH Shanghai Update Delayed again then the network will suffer some serious losses in the near future.
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