Ethereum Shanghai upgrade to cut gas fees and make network improvements

Ethereum is due to receive another significant update, which is expected to be deployed on the blockchain's mainnet sometime in 2023.

Preparations have already begun, with developers going forward and launching a testnet version of the update labelled Shandong.

The ETH Shanghai upgrade will improve the Ethereum network by cutting gas fees, allowing ETH stakers to withdraw ETH from the beacon chain, and enhancing the Ethereum Virtual Machine.

Ethereum Shanghai upgrade enters testnet

Ethereum's Shanghai upgrade referred to as the second most important upgrade after the network's transition to PoS (proof of stake), is finally inching closer to deployment.

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The testnet version of the upgrade called Shandong has recently been launched on Ethereum.

Shandong will serve as a testing ground for Ethereum developers, allowing them to tune and adjust the number of updates that will be included in the Shanghai version when it officially launches in the second half of 2023.

Ethereum Shanghai upgrade benefits

EIP-4895 is one of the most anticipated proposals for the Shanghai upgrade. The proposal will allow users to withdraw their staked ETH from the beacon chain.

Another notable proposal, dubbed EIP-4844, is also being considered to be included in the official rollout, which introduces proto-danksharding. The implementation of EIP-4844 will accelerate Ethereum's data processing rate, which will, in turn, help the network lower its gas fees.

Lastly, the developers are also looking forward to introducing EIP-3540, a network proposal that plays an instrumental role in separating the data and coding in the Ethereum Virtual Machine.

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