Ethereum: Two Key Updates for 2023
The Ethereum (ETH) network’s Shanghai update is one of the most highly anticipated events on the crypto market. It promises to bring increased liquidity to the leading altcoin by unlocking ETH staked in the Beacon Chain. The expected release date for the Shanghai update is March 2023, marking the end of the Merge era.
While the crypto community has some concerns about the potential selling pressure that could result from the update, it is important to note that the ETH release will occur gradually through a queue, potentially reducing the impact on the market.
The launch of the Beacon Chain enabled stakeholders to validate blocks and secure the ETH network while maintaining the predictability of security during The Merge, the biggest update on the cryptocurrency market in 2022.
In addition to the Q1 hard fork, the ETH network will also undergo two major upgrades later in 2023. These updates will further enhance the leading altcoin’s position on the market.
The Surge
Ethereum creator Vitalik Buterin has stated that the primary focus of the upcoming update is to address the scalability challenges faced by the smart contract platform. The update will accomplish this by fragmenting the ETH database, enabling the network to scale while maintaining its decentralization.
To achieve this, the ETH network’s information will be split horizontally, allowing it to distribute the load and reduce storage costs and hardware requirements. It is important to note that this update will not immediately result in a scalable Ethereum blockchain. Instead, EIP 4844 will create a separate blockchain for Layer 2, which will aid scalability solutions such as Arbitrum and Optimism in lowering their transaction fees and becoming truly competitive with other ETH competitors with lower transfer fees.
EOF
The upcoming EOF (EVM Object Format) update will bring improvements to Ethereum’s code execution environment, making the cryptocurrency platform more efficient and streamlining the process of creating smart contracts. EOF will also facilitate updates to the EVM and create a system to track resource usage of new contracts.
These upgrades bring Ethereum closer to its goal of becoming a large, decentralized computer that supports dApps with a user-friendly interface, low fees and a secure network for daily transactions.
It is important to note that updates in the cryptocurrency world are made through proposed improvements that are subject to change at any time.
