Ethereum (ETH) developers have just implemented the Shanghai-Capella upgrade on the Sepolia testnet completing g a major milestone towards the upcoming Shanghai hard fork expected to take place on the mainnet in March.
Ethereum (ETH) enthusiats and crypto investors buckle up for the highly anticipated Shanghai upgrade that has the potential to take the Ethereum network to new heights. This upgrade aims to introduce “sharding”, which will eventually make Ethereum more scalable. It will allow Ethereum validators and investors to withdraw their staked Ethereum (ETH) from the Beacon Chain for the first time since its introduction in December 2020.
In the process, users can take control of their cryptocurrency assets and start earning staking rewards of up to 5% per year. It is believed the Shanghai upgrade will also help to improve the performance of the Ethereum network and reduce the cost of gas fees, making it easier and more affordable for investors.
Shapella Goes Live
Sepolia testnet has successfully upgraded to Shapella! 🌃
Some of the Prsym validators are offline due to the old geth version. They will come online in the next 10 mins!
Next stop: Goerli pic.twitter.com/pb43Gq7w9C
— terence.eth (@terencechain) February 28, 2023
According to the latest development, a second Ethereum testnet, known as Sepolia, successfully replicated withdrawals of staked ether (ETH), bringing the Ethereum blockchain closer to its upcoming Shanghai Upgrade in March.
On February 28, the “Shapella” upgrade, which is a cross between the names of the upcoming Shanghai and Capella hard forks, was successfully implemented on the testnet just before Ethereum’s Goerli testnet, that is planned before Shanghai goes live. The Sepolia test was designed to give developers another practice run of withdrawals similar to those that will occur on the main Ethereum blockchain.
Shanghai is the name of the fork on the execution layer client side, and Capella is the name of the upgrade on the consensus layer client side. Among other new features, one of the major changes allows validators to withdraw their staked Ether (stETH) from the Beacon Chain back to the execution layer.
Ethereum’s Complete Transition to PoS
In order to validate the Ethereum blockchain, validators needed to stake 32 Ether. They can now withdraw rewards in excess of 32 ETH and continue validating, whereas those who want to fully withdraw can take all 32 ETH plus rewards and stop validating.
Before the Shanghai fork goes live on the mainnet, the upgrade will be released on the Ethereum Goerli testnet, which is expected to begin in March.The Shanghai Upgrade will mark Ethereum’s complete transition to a fully functional Proof-of-Stake (PoS) network, enabling validators to withdraw rewards earned from adding or approving blocks to the blockchain. During Ethereum’s transition to Proof-of-Stake (PoS) consensus last year, also known as “The Merge”, ETH withdrawals from validators were not enabled.