Ethereum: Preparing for Upgrades and Capital Payback
Ethereum has undergone significant changes since its inception in 2015, particularly in September 2022 when it switched from the Proof of Work to the Proof of Stake consensus model. The network is now preparing for further upgrades.
One of the most pressing upgrades is enabling participants who have deposited money in the PoS system as a pledge to receive their deposit back with interest. This was promised prior to the introduction of PoS, but it is not yet foreseen in the consensus protocol.
In response to pressure from the community, the Ethereum community has postponed other changes to prioritize boosting the network’s capabilities in the upcoming upgrade, dubbed Shanghai/Capella (also known as Shapella). The upgrade is scheduled for release on April 12th.
However, the upgrade process should not be underestimated, as unforeseen problems often arise, and different development groups need to be involved. Additionally, developers of applications like wallets must be given sufficient time to consider the changes in their apps.
Another challenge is the processing time for staking deposit withdrawals. With only 16 withdrawals processed per block, it can take up to nearly seven days to process 800,000 withdrawals.
While Ethereum faces challenges in these upgrades, it has already come a long way and continues to evolve.