Ethereum Shanghai Mainnet Shadow Fork launched

Ethereum users are one step away from access worth $26 billion (and counting) by ETH with the world’s largest smart contract network.

Ethereum’s core developers on Monday announced the successful implementation of the first mainnet shadow fork designed to test readiness for ETH withdrawals, a feature expected to be released. in March.

Mainnet shadow forks are major full iterations of system upgrades, allowing developers to test for design flaws and modify any outstanding issues. Monday’s test previewed the upcoming and highly anticipated Ethereum upgrade in Shanghai, which will introduce ETH withdrawals into the Ethereum ecosystem.

Shanghai will be the first major upgrade since Ethereum’s historic merger in September, which transformed the network into a proof-of-stake system. The merger also introduced the ability for users to deposit ETH into the network to become validators and help authenticate on-chain transactions. In turn, these users have the opportunity to collect rewards in the form of newly generated ETH.

Users have wagered nearly $26.5 billion in ETH since December 2020 to earn such rewards. However, these users will only be able to withdraw both their new ETH deposits and their original ETH deposits once the shanghai is executed.

Marius van der Wijden, developer of the Ethereum core, announced Monday on Twitter that the first mainnet shadow fork to withdraw ETH has successfully launched, though some minor issues have since been fixed.

By all accounts, this means that Ethereum is still on schedule to offer ETH withdrawal features in the next five to eight weeks.

This schedule has been a top priority for the network’s core developers, who are keen to get ETH withdrawal capacity available as quickly as possible — even at the expense of other improvements.

Shanghai was originally expected to include more long-awaited improvements, incl proto-danksharding—a simplified data sampling process that should make Layer 2 transactions on Ethereum dramatically cheaper and faster — and EOF, a much-needed and years-overdue update to the Ethereum Virtual Machine (EVM), the mechanism underlying the network that uses smart contracts. Both updates have been delayed to ensure that ETH withdrawals will appear in March.

Last week, a number of Ethereum core developers expressed their frustration with the decision to forgo updating the coding method used in the Shanghai rollout. This decision, another sacrifice by the developers to speed up the upgrade release, could have unforeseen technical ramifications for Ethereum in the coming years, many core developers Tell Decrypt.

The upgrade release will undoubtedly have a huge impact on the crypto markets. Analysts at JP Morgan recently wrote that the ability for ETH traders to cash out as they please “could usher in a new era of leverage” for major cryptocurrency exchange Coinbase, which has seen a hemorrhage in value since the start of the latest crypto winter last May.

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