The Ethereum Shanghai Upgrade pt.1

What is the $ETH Shanghai upgrade? Everyone on CT is talking about the millions of $ETH about to be unlocked, but what else does this upgrade mean? A thread 🧵

1/ The $ETH Shanghai upgrade is the most significant event happening to the protocol since The Merge. It's a hard fork scheduled to happen in April this year

2/ But what is a hard fork? A hard fork is a software update that is not compatible with the existing blockchain protocol. As a result of this, the blockchain network has to be split into two different networks

3/ What are the new changes introduced in this upgrade? The Ethereum Improvement Proposal (EIP) 4895 is one of the most awaited upgrades, allowing validators to withdraw $ETH staked as far back as the Beacon's chain launch, in December 2020

4/ The Ethereum Shanghai upgrade will also feature some other EIPs designed to reduce gas costs for Ethereum developers, and improve efficiency, security and scalability, such as EIP-3651, EIP-3855, EIP-3860, and EIP-6049

5/ These upgrades will help developers, making it cheaper and easier to build dApps on the Ethereum blockchain. So, will these changes affect the price?

6/ While it is difficult to forecast the exact outcome of the upgrade in the price yet; the market will certainly be quite volatile due to the close attention this event is receiving

7/ With 17.6M $ETH getting unlocked, many expect downward pressure on the price due to all the liquidity flooding back into the open market Others argue that most $ETH will not be sold, and the improved liquidity and fee structure will make the asset more attractive to investors

8/ One thing is sure, this is one of the most anticipated events for the crypto community in a long time, so I'm going to be following its development closely to keep you all updated. Let me know if you'd like more threads on the Shanghai upgrade.

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