The Ethereum network is set to undergo a major upgrade in March 2023, known as the Shanghai upgrade (“Shanghai” or the “Shanghai upgrade”). Shanghai will be Ethereum’s next major update after the transition from Proof-of-Work to Proof-of-Stake consensus in September. This upgrade is highly anticipated and promises to bring several new features to the Ethereum network, including, allowing those who have participated in staking ETH into the Ethereum 2.0 contract to withdraw funds and staking rewards. Aside from its effects on staking, the Shanghai upgrade may also see changes in market demand for Ethereum.
The Shanghai upgrade will follow The Merge, which will enable stakers to withdraw their rewards and funds from their validator balance. This upgrade is expected to take place a few months after The Merge, in early 2023.
Staking Ethereum requires a minimum of 32 ETH to activate validator software. This is used to store data, process transactions, and add new blocks to the blockchain, which help to secure the Ethereum network. Staking ETH rewards users with additional ETH, making it an attractive option for those looking to increase their holdings.
The Shanghai upgrade will also include several other eagerly awaited updates, such as protocol upgrades, improved scalability, and better security. The primary objective of the Shanghai upgrade is to enhance the scalability and performance of ETH.
In preparation for the upgrade, the Ethereum Foundation (EF) DevOps launched the Pre-Shanghai testnet—Shandong—on October 14, 2022. This testnet will help to ensure that the upgrade is successful and that the Ethereum network is ready for the Shanghai upgrade.
Overall, the Shanghai upgrade is an exciting development for the Ethereum network and will bring several new features and improvements. It is expected to take place in early 2023 and will help to make the Ethereum network more secure and efficient.
Do I need to do anything?
There is no specific action required for Coinsquare holders of Ethereum or ERC-20 tokens in order to prepare or upgrade during the Shanghai upgrade. The update has been structured to have no impact on Ethereum or ERC-20 token holders. You don’t need to move, update or upgrade your coins. Anyone who claims to be able to help you claim, merge or move your coins is likely trying to scam you. Stay alert, and always reach out to a trusted contact, like Coinsquare Support, with questions about the Shanghai upgrade.
Where can I go to learn more?
We recommend relying on sources that are directly published by the Ethereum core team. Here are a few of our favorites:
- Ethereum.org is the official domain of the Ethereum community, supported by the Ethereum Foundation
- Wenmerge is a countdown timer for the Shanghai upgrade, run by the Ethereum community based on data provided by the Ethereum core team.
- The Ethereum Blog offers the latest news and announcements from the Ethereum Foundation.