2023 promises to be a great year for Ethereum and the entire crypto community as they expect major updates from the Ethereum network. The Ethereum Shanghai upgrade is one of the most anticipated crypto events, which will be happening in March this year. This event promises to bring major upgrades to the Ethereum network that will change many things.
When Ethereum announced this update, there was excitement and concern. People were concerned about the effect the Ethereum Shanghai upgrade might have on the crypto market. It is an upgrade that will bring high liquidity for Ethereum as it will unlock staked ETH on the Beacon Chain.
Many crypto enthusiasts believed that the new update from the Ethereum network might cause increased selling pressure on the market. However, Ethereum has addressed such concerns after they revealed that the upgrade would be launched gradually to reduce its negative impact on the crypto market.
Apart from the Shanghai upgrade, Ethereum is also planning two major updates, which will be launched later in the year. According to those with good knowledge of the situation, these two updates will change many things about the Ethereum network. Thus, increasing its rank among other cryptocurrencies.
The EOF (EVM Object Format) Update
The EOF update will be launched by Ethereum later this year. Ethereum’s code execution environment is the major target of this update as Ethereum developers will try to improve the network efficiency.
EOF will also spearhead a more effective creation of smart contracts in the Ethereum network. Apart from this, this new upgrade will also create a system that will help track the resource usage of smart contracts with the network.
Ethereum revealed the purpose of launching this update was to reach the long-term objective of Ethereum. Ethereum plans to become a large decentralized network that supports dApps with an intuitive interface. If this objective is met, the Ethereum network will allow users to perform transactions with lower gas fees.
Ethereum developers plan to make the Surge go live after the Shanghai upgrade slated to happen in March. This update is part of the plan to reach Ethereum sharding objectives. Ethereum sharding is a multi-phase plan by Ethereum to create better scalability in the network.
Ethereum creator Vitalik Buterin has said that the major focus of the Surge update is to solve some of the scalability issues the Ethereum network is experiencing. When the Surge is fully implemented on the Ethereum network, it will allow the network to scale without compromising its decentralization. To achieve this objective, fragmentation has to be undergone on the Ethereum database.
It has also been revealed that the fragmentation of the Ethereum database will happen by splitting it horizontally. This split will allow the database to distribute loads, thereby reducing hardware requirements and storage costs.
Ethereum developers said that when this update is launched, users should not expect any immediate changes in Ethereum scalability. Instead, it will come as a gradual process that will spread for some time. A separate blockchain will also be created for Layer 2 using the EIP 4844.
It is also worth noting that the plans for the two updates mentioned above can change anytime, as accustomed to crypto projects.