As most of the crypto world watches, Ethereum’s highly-anticipated Shanghai update has officially gone live. Moreover, the development was scheduled to arrive Wednesday night and will enable the withdrawal of previously staked Ethereum on the network for the first time.
There has been some speculation that the arrival of the upgrade could have a negative impact on the price in the short term. Conversely, its implementation signifies a host of technology improvements for the Ethereum Network.
ETH Shanghai Upgrade Goes Live
The highly anticipated final step in the network move from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism has arrived. Specifically, the anxiously awaited Ethereum Shanghai update has officially gone live.
The PoS model is a more optimal method in regard to energy efficiency. Moreover, it verifies crypto transactions with randomly elected validators based on staked ETH. Additionally, withdrawal functionality is the prime function of the two-part network update, Shanghai and Capella.
“This enables previously staked ETH to be deposited into execution layer accounts, closing the loop on staking liquidity,” the Network stated. Subsequently, noting the end of the lock-up period, users are free to stake their own ETH and more.
Conversely, the simultaneous Beacon Chain update, known as Capella, has occurred. Thus, is a requirement for the Shanghai Update to finally arrive. Together, both upgrades have gone live to enable the newly developed withdrawal feature.
Ethereum has noted the new approach to staking withdrawals does away with the necessity to submit transactions that request a specific amount of ETH be withdrawn. Consequently, there is no transaction fee required, as withdrawals are not in competition for execution layer block space
Conclusively, Ethereum states that a maximum of 16 withdrawals can be processed in a single block. Moreover, 115,200 validator withdrawals are able to be processed on a given day. Subsequently, the network predicts that the calculation will equate to 400,000 taking 3.5 days to complete, and 800,000 taking 7 days.