What Is the Ethereum Blockchain’s Shanghai Hard Fork, and Why Does It Matter?

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In March, Ethereum will undergo the Shanghai hard fork, opening a new era for the blockchain that enables staked $ETH withdrawals and lowers gas costs. cryptauxmargaux explains what the upgrade will consist of for this week’s Valid Points Newsletter.

, the network began using validators instead of miners to add blocks to the blockchain. Validators must stake 32 ETH with the chain in order to participate in the block validation process. Each staked ETH acts like a kind of lottery ticket: The more ETH a validator stakes, the more likely they will be selected to “propose” the next block of Ethereum transactions and earn some network rewards.

But in addition to accessing locked up funds, the PoS blockchain has not been fully featured ever since it went live. Even though the blockchain functions properly today, stakers have had to commit to keeping their funds locked in order to keep Ethereum running. Now with the mechanism that will unlock staked ETH, the full operation of a proof-of-stake blockchain will come to life, meaning that stakers can finally have control over their funds and decide what they want to do with their rewards.

 

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As far as lowering gas fees for the average crypto investor. It’s another big middle finger!!

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Great to see educational efforts around this innovation! Helping everyone understand that changes that are happening, especially in technology, will help society manage and establish proper framework around it.

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ethereum The Ethereum network upgrade in March is like hitting the accelerator on a spaceship - it's going to skyrocket the platform to new heights! 🚀 Say goodbye to staked $ETH withdrawal headaches and hello to reduced gas fees for developers. Ethereum Crypto

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