Ethereum developers launch the first testnet after switching to PoS

After the full launch of the upgrade, users will be able to withdraw their ETH from staking

19.10.2022 - 11:30

8011

2 min

What’s new? Ethereum blockchain developers have launched a testnet called Shanghai. After the official launch of the upgrade, which is expected in September 2023, users will be able to withdraw their ETH from staking. The upgrade is aimed at reducing transaction fees within the network. According to Cointelegraph, the developers have also promised to improve the Ethereum Virtual Machine (EVM) technology.

Cointelegraph’s material

What else is known about Shanghai? This will be Ethereum’s first update since the consensus algorithm switched from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in September.

According to EIP-3540, developers will separate code and data, making the smart contract verification process more efficient. The upgrade will also make changes to layer 2 (L2) protocols, reducing fees by equalizing block sizes and making data transfers more efficient.

Finbold previously reported that Ethereum lost nearly 20% of its market capitalization after switching to PoS. As of October 19, 10:30 UTC, this figure stands at $157,3 billion. ETH is trading at $1301, having lost 2% of its value in 24 hours, according to crypto exchange Binance.

In addition, after the algorithm change, the network faced regulatory uncertainty and the possible classification of ETH as a security by the US government.

To find out what Vitalik Buterin considers the most important for Ethereum after The Merge, see GetBlock Magazine’s article.

Author: