A recent update has revealed further development on Ethereum. As well as the highly anticipated Shanghai and Capella updates coming sometime in March.
According to a Ethereum developer, the Zhenjiang Public Test Network for the Shanghai update would allow users to test and evaluate the retirement process and network functionality after the Shanghai update.
The developer who goes by Barbabas Busa on Twitter said that the Zhejiang public testnet went live on February 1. But users will not be able to test the withdrawals until six days later (February 7), when the Shanghai and Capella testnets go live.
The Zhejiang public testnet will be launched tomorrow (February 1, 2023 15:00 UTC). Shanghai+Capella will be activated 6 days later (in epoch 1350). You will be able to deposit validators, practice BLS exchange and leave without risk. All the links are here: https://t.co/XNlsDIG0cm pic.twitter.com/sKKDJmolt2
— Barnabas Busa (@BarnabasBusa) January 31, 2023
The testnet would allow users to test validator shells, practice changing BLS, and master UI navigation without risk.
According to the launch pad documentation, the testnet would mimic a post-merge chain. So your genesis will be in a fused state.
The Shanghai update to end the Ethereum locked problem
The upcoming Shanghai update is among the most anticipated events in the Ethereum community and the entire crypto space. It would facilitate the withdrawal of ETH staked. The upgrade would allow for the gradual rollout of ETH staked on the Beacon Chain for up to 26 months.
Some people believe that the Shanghai update would boost Ethereum stakes. Also, liquid staking platforms like Lido could benefit more from the Shanghai update as they offer more performance opportunities than direct staking platforms.
Jack Niewold, the founder of Crypto Pragmatist, a crypto research and analysis firm, believes that the blocked ETH problem will end in March after the Shanghai update. Niewold also predicted that being able to withdraw staked ETH would stop the interest that has been accruing on locked ETH.
Furthermore, the Shanghai update would guarantee the release of Ether staked in lots. To withdraw staked ETH, validators must follow a two-stage process, which includes an exit queue and a withdrawal period.
The output queue works under a mechanism that maintains the stability and security of the network called ‘dropout limit’. Increase the withdrawal period if a large number of validators want to leave at the same time. That means it could take a couple of months to get a withdrawal if the checkout queue is long.
Current performance of the ETH market
Currently, around 16.3 million ETH have been locked on the Beacon Chain (Ethereum POS chain), representing 13.5% of the total circulating supply. The dollar value of the locked ETH would be approximately $25.9 billion at current ETH prices.
Meanwhile, Ethereum is up more than 6.22% in the last 24 hours to trade above $1,660. It is the second largest cryptocurrency with a market capitalization of $204 billion.
Featured image from Pixabay, WorldSpectrum charts from Tradingview
