Cointime

Cointime

Download App
iOS & Android

The Ethereum Upgrade: Everything You Need to Know About Shanghai-Capella

Validated Individual Expert

This month, Ethereum will undergo the “Shanghai-Capella” upgrade, the largest network upgrade since the “Ethereum Merge” in 2022.

“Shanghai-Capella” will enable the withdrawal of staked ETH from the Ethereum blockchain, completing its transition from a proof of work to a proof of stake network.

The upgrade promises to usher in a new era of scalability, sustainability and mainstream adoption for Ethereum, but what does it mean for everyday users of Ethereum? Find out below:

When did Ethereum start its transition from a proof of work to proof of stake blockchain?

  • In September 2022, the “Ethereum Merge” successfully upgraded the Ethereum network’s mainnet from an energy-intensive proof-of-work consensus mechanism to the more energy-efficient proof-of-stake. Proof-of-stake lets users stake cryptocurrency to validate transactions, and in turn these users are rewarded for that participation with cryptocurrency.
  • The merge, however, did not offer the ability to let individual stakers withdraw deposited Ethereum (ETH) or the rewards generated by those deposits.
  • This is where the “Shanghai-Capella” upgrade comes into play, as “Shanghai-Capella” will finally enable the withdrawal of staked ETH.

Are Shanghai and Capella two different upgrades?

  • Technically, yes.
  • The “Shanghai” upgrade is on the execution side of Ethereum, whereas Capella is the upgrade on the consensus side — taking place straight afterwards.

I haven’t staked Ethereum but I do trade Ethereum, does this mean for me?

  • Unless you have engaged with Ethereum staking, the upgrade will not change the way everyday users interact with Ethereum.

I have staked Ethereum, how will this impact my Staking account?

  • You can continue adding to your Blockchain.com Staking Earn Account, but for the first time you will be able to withdraw assets.
  • We expect withdrawals from your Blockchain.com Staking Earn Account to be available a few weeks after the Ethereum upgrades are complete as the time taken to process withdrawals is set by the Ethereum protocol (not Blockchain.com).
  • Remember, you remain liable for any taxes in relation to your Staking or other crypto products.

While the upgrade is a huge advance forward for those who stake and the Ethereum network at large, the upgrade will have little impact upon how everyday users interact with Ethereum or the economics of the network itself.

Ethereum Shanghai upgrade
Comments

All Comments

Recommended for you

  • U.S. consumer confidence improves again in November, reaching a two-year high

    Dana M. Peterson, Chief Economist of the World Large Enterprises Federation, said, "US consumer confidence continued to improve in November, reaching the highest level in the past two years. The growth in November was mainly due to consumers' more positive assessment of the current situation, especially in the labor market. Compared with October, consumers' optimism about future employment opportunities has also greatly increased, reaching the highest level in nearly three years. At the same time, consumers' expectations for future business conditions have not changed, while their optimism about future income has slightly declined." Earlier, the US Conference Board Consumer Confidence Index for November recorded 111.7, a new high since July 2023.

  • Starknet: Phase 1 of STRK staking is now live on the mainnet

    Starknet announced that the first stage of STRK staking has officially launched on the mainnet.

  • CZ: Not trying to end the meme craze, just encouraging more builders

    CZ posted on X platform today, saying: "I am not against Meme coins, but Meme coins have become 'a little' strange now. Let's use blockchain technology to build practical applications." Some community users said that even Musk is a supporter of Meme coins, and it is very difficult to end this frenzy. CZ responded that "there is no attempt to end anything, everyone has the right to choose to invest or hold what they want. Just encourage more builders."

  • Talus Network Completes $6 Million Strategic Round of Financing with a Valuation of $150 Million

    decentralized AI protocol Talus Network raised $6 million in a strategic financing round led by Polychain Capital, valuing the company at $150 million. This funding will help further develop the Talus ecosystem, including the Protochain, Nexus framework, and "AI dating experience" application.

  • Cointime精选 ·

    Are we finally ready for a gas limit increase?

    There has been growing discussion around the possibility of increasing Ethereum’s gas throughput, either by raising the gas limit or reducing slot time. The key argument in favor of this is that the hardware requirements for running a validator have steadily decreased over the past four years.

    Are we finally ready for a gas limit increase?

  • Cointime August 17th News Express

    1.VanEck and 21Shares Solana ETF Form 19b-4 Suspected to be Removed from CBOE Website

  • Ethereum network gas fee falls back below 1 gwei

    According to Etherscan data, the current Ethereum network gas fee has fallen below 1 gwei, currently at 0.937 gwei.

  • Cointime August 10th News Express

    1. The U.S. Internal Revenue Service has released a new draft of the crypto tax form, which no longer requires filling in wallet addresses and transaction IDs

  • Ethereum ACDC #139: Pectra's Devnet 2 upgrade is under debugging, and the release date of Devnet 3 is still to be determined

    Christine Kim, Vice President of Galaxy Research, summarized the main content of the 139th ACDC conference call. The debugging of Pectra's upgraded Devnet 2 is currently underway, and the release date of Devnet 3 is yet to be determined. Developers will hold weekly testing update meetings starting from Monday to better coordinate the release of Pectra's Devnet. The decision to include EIP-7688 in Pectra's upgrade has been postponed again.

  • Ethereum network gas fee drops to 1 gwei

    According to Ether­scan data, the current gas fee on the Ethereum network has dropped to 1 gwei.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company