The Ethereum Shanghai update is set to be the next update to follow the upcoming Ethereum Merge. The merge looks like it will be one of the biggest updates in the crypto world this year, seeing Ethereum mining shift from a PoW to PoS.
With all the hype around the Ethereum Merge, the Shanghai update is a bit less known and is raising questions. Here’s what we know about the Shanghai update, as well as when it should go live
What is the Ethereum Shanghai Update?
The Ethereum Shanghai update is the update scheduled to arrive soon after the first Ethereum merge deployment. As laid out by developer Tim Beiko, the Shanghai version addresses three critical issues surrounding Ethereum. It introduces changes in the EVM object format, Beacon Chain withdrawals, and L2 fee reduction.
To begin, the EVM object format will separate the code from the data. This could be extremely beneficial for the on-chain validators. Alongside the separation, EIP-3540 introduces a new contract code section that helps in tackling and resolving complex features such as Account Abstraction, control flow in EVM, and EIP-3074.
The Shanghai update also addresses the Beacon chain withdrawal delay. This aspect of the update will allow Ethereum holders to withdraw their deposited ETH, which previously wasn’t possible.
Lastly, the update introduces changes that will effectively lower the notorious gas prices of Ethereum. The changes will be made by equalizing the block sizes and increasing the CALL DATA functionality of the block.
When is the Ethereum Shanghai Update?
The Ethereum Shanghai upgrade is expected to take place in early 2023, a few months after The Merge. The official Ethereum site states the following in regard to the Shanghai update.
After the Shanghai update (planned to follow the Merge by a few months), stakers will then be able to withdraw rewards and funds from their validator balance.Ethereum Developers
The first step of the Ethereum Merge arrives on Sep. 6.