What you should know about the upcoming Ethereum upgrade “Shanghai”?
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Answer What you should know about the upcoming Ethereum upgrade “Shanghai”?
The crypto community awaited a major Ethereum upgrade called “merging,” in which authentication shifted from the mining and proof-of-work mechanism to the staking mechanism, as the upgrade was successfully completed in September 2022.
Now, cryptocurrency investors and the Ethereum community are waiting for the “Shanghai” update.
They had very high expectations for the update that should happen in 2023.
The Shanghai Upgrade will bring liquidity to Ethereum, as cryptocurrencies that have been pooled on the Beacon Chain will be released for trading.
This version comes from the proposed EIP 4895, which will also make the Ethereum network more scalable.
Ethereum’s focus remains on scalability, with EIP 4844 being proposed.Read:Ripple’s partnership with “MoneyGram” officially ends, and the SEC lawsuit continues
At this point in the upgrades, there will be fragmentation to increase network throughput and reduce throughput.
Five proposals were submitted and approved by digital token developers.
The proposals will be responsible for making the implementation of smart contracts more secure.
On October 18th of this year, a crucial step was taken for the upgrade. The trial network version of the “Shandong” upgrade was launched.
How will the price of Ethereum react?
Time is what will reveal whether or not the price will be affected by the upcoming upgrade.
While there is a consensus that the issuance of cryptocurrencies will cause investors to sell their cryptocurrencies, this may not happen, for several reasons, most notably:
Attractive rewards for staking Ethereum.
In addition, Ethereum is not just an altcoin but the most popular in the cryptocurrency market.
The investors who bet and staked Ethereum are also the ones who trusted and placed their bets on the cryptocurrency long before the merge upgrade happened.
So their desire to get rid of Ethereum goes very far.Read:South Africa: Fraudulent company using Ponzi scheme fails to pay its investors
Finally, network upgrades are often beneficial for altcoins.Read:Announcing the burning of EOS digital coins worth 167 million dollars for this reason!!
Ethereum’s move to proof of stake proves that.
Although the coin was already priced in and the price didn’t grow higher after the upgrade arrived, the volatility of Ethereum was positive.
To balance this scale, there is a negative point that must be taken into account.
It is that although the proposals are good, there is no guarantee that they will all be implemented in the next upgrade.
The approval of the developers only indicates that they will be present at the testing stage.
Therefore, if the Shanghai Upgrade is offered lower than the market expects, the price will be corrected.
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