Ethereum Set to Undergo Shanghai Update in March, Here’s What It Means

Ethereum's blockchain upgrade will also bring fixes and small improvements to its infrastructure.

Ethereum Set to Undergo Shanghai Update in March, Here’s What It Means

Photo Credit: Unsplash/ Shubham Dhage

Called the Merge, Ethereum’s upgrade to PoS completed in September 2022

Highlights
  • Ethereum blockchain has over 15 million tokens staked
  • Staking tokens helps validators verify transactions
  • Ether prices could see fluctuations in the coming days
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Ethereum, the world's most commercialised blockchain, is set to see the completion of another historic update, called the Shanghai update. As of now, people who staked Ether tokens to validate the blockchain had no way to withdraw their tokens. It is estimated that $22.38 billion (roughly Rs. 1,82,520 crore) worth of Ether tokens are currently staked on the blockchain. Around March, when the upgrade is slated to be complete, it will change the situation.

The amount of staked ETH spiked when Ethereum was preparing to switch from its power-intensive Proof-of-Work (PoW) module to a green alternative. That eco-friendly module is called the ‘Proof-of-Stake' (PoS).

In PoS, blockchain validators stake their personal Ether tokens to create new blocks and verify transactions. In return, stakers get interest on their tokens.

Called the Merge, Ethereum's upgrade to PoS successfully completed in September last year.

Some people will be able to withdraw ETH that have been staked since 2020, in a first opportunity to do so.

As per Blockonomi, over 15 million Ether tokens are currently staked at the network.

After March, PoS Ethereum validators would get a choice to either keep their tokens staked or withdraw them.

When staked ETH tokens are open to be withdrawn, it could encourage more people to become part of the network.

When the update completes, it could shake Ether's value point, which at the time of writing stands at $1,398 (roughly Rs. 1.10 lakh).

Ethereum developers are reportedly looking to launch a public testnet for the Shanghai update in February.

The blockchain upgrade will also bring fixes and small improvements to its infrastructure.


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Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More
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