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Ethereum Shapella Upgrade to Go Live on Testnet

Discover the details of Ethereum's upcoming Shapella network upgrade, allowing validator withdrawals and enhancing blockchain functionality.
Published on 2023-02-22

Ethereum's Network Upgrade

Ethereum is set for a significant network upgrade, known as the Sepolia Shapella (Shanghai/Capella), scheduled to activate on the testnet on February 28. This upgrade marks a pivotal moment following Ethereum's shift to a proof-of-stake model.

Validator Withdrawals Enabled

For the first time, validators will be able to withdraw their staked Ethereum from the Beacon Chain to the execution layer. This development is crucial as over $27 billion in ETH is currently staked, representing more than 13% of Ethereum's market cap.

Upgrade Features

The Shapella update introduces new functionalities to both the execution layer (Shanghai) and consensus layer (Capella). Validators can now cease node operations, exit the network, and unlock their staked 32 Ether along with any accrued rewards.

Withdrawal Process

The withdrawal process consists of two phases. The partial withdrawal phase, expected to take about a week, allows balances exceeding 32 ETH to be moved while keeping the validator active on the Beacon Chain.

Technical Considerations

The upgrade integrates changes across the execution layer, consensus layer, and the Engine API. Validators are cautioned about the risks of running majority clients on both layers. Running a minority client poses moderate risks, while a majority client might lead to substantial losses.

Impact on Ethereum

This upgrade is a major milestone in Ethereum's ongoing development, enhancing the blockchain's functionality and providing more flexibility for validators. With the testnet launch imminent, Ethereum continues to evolve, strengthening its position in the cryptocurrency market.

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