Category

The Ethereum blockchain is about to receive an important update on April 12th, namely the Shanghai Upgrade. The main purpose of this upgrade is to enable the extraction of Ethereum (ETH) already pledged on the Beacon Chain. Currently, over 17 million Ethereum coins are locked on the Beacon Chain, accounting for over 15% of ETH's total supply.How will this upgrade affect the price and market of ETH? We believe that from multiple perspectives, the upgrade in Shanghai is beneficial for ETH, for the following reasons:Enhancing the attractiveness of beacon chains Beacon chain is a core component of Ethereum's Proof of Rights (PoS) consensus mechanism, which enables Ethereum networks to be more secure, efficient, and environmentally friendly. Currently, to become a verifier of the beacon chain, at least 32 ETHs need to be pledged and cannot be extracted. For some users, this may be a high threshold and risk. After the upgrade in Shanghai, pledgers can freely extract their ETH and rewards, which will reduce the cost and risk of pledging, attract more users to participate in pledging, and increase the security and decentralization of the Ethereum network.Reduce the cost of second tier solutions