Ethereum is a decentralized blockchain with smart contract functionality. The platform has its own native token Ether(ETH) which is only second to bitcoin in market capitalization and adoption. The block chain is open-source and was conceived in 2013 by a programmer, Vitalik Buterin, leading to its release in 2015. Ethereum technology powers digital money, global payments and decentralized applications. Ethereum ecosystem is currently booming with a digital economy with multiple revenue streams. Currently a single ETH retails at just over $1 860.
The Ethereum core developers have recently revealed a new update to the Ethereum Blockchain. The new imminent update has been dabbed “Shapella” from the Shanghai and Capella updates. Tim Beiko, Ethereum core developer, revealed on twitter that the much anticipated update will be rolled out on April 12th. He also went ahead to ask validators to check the FAQ’s(Frequently Asked Questions) section to make sure they are ready for the update.
So what exactly is Shapellla and what changes and new features does it bring to the Ethereum blockchain? Well, Shapella is the most anticipated network update of the Ethereum chain in 2023. This update will create a major event in recent months as it is the fist major update to the network in a period of 3 years. The second largest therefore, in on the brink of receiving the most radical tokenomic change in a while.
Once Shapella update is effected and committed on the chain. Users will get a new range of functions and features and below is what to expect:
Shapella is designed to allow users to withdraw their deposits from staking contacts. previously, this feature was not supported as users could not “unstake” their contracts.
Shapella also includes changes to the execution layer – Shanghai, Consensus layer – Capella, and the engine’s API.
The update might have an influence on ETH price since unlocking funds reduces risk to ETH staking but might also trigger selling pressure. The update is set to be effected on April 12th at 10:27 P.M UTC.
Shapella upgrade will also require ETH node operators to upgrade their client software. The platform has already prepared upgrades to all versions of consensus and execution layers.
With this new update, the Ethereum chain is taking a completely different approach from its norm while progressing towards full-fledged proof of stake (POS). A POS is type of network consensus in decentralized systems where network participants guarantee their staking and locking the native cryptocurrency on this chain.
The update is highly anticipated by users of the network owing to the fact that currently,16.35 million ETH is staked on the network. The naming convention – Shapella, is also a combination of Devcon2(2nd Developer Conference) location – Shanghai, and Capella – a bright star. The update however, does not require regular users of exchanges and users of digital and hardware wallets to change anything unless advised to do so by their providers.
In conclusion, the Ethereum network is hosting a live viewing party for users who wish to watch the Shapella update go live. If you are enthusiastic and interested, catch the event here.
