What to expect with the ETH upgrade?

Last updated on January 22nd, 2024 at 08:41 am

You may have heard that new updates are coming in ETH. Here we will tell you about it and how it will impact your Staking account.

“The Merge” marked an important milestone for the Ethereum network in 2022, as the blockchain platform moved from proof-of-work consensus to proof-of-stake. As a result, the network began to use validators and ETH staking became a key component of network maintenance.

Shanghai-Capella (Shapella), the latest update of ETH, will focus on finally enabling withdrawals of Ether (ETH) tokens disposed of in staking (wagering or participation) programs.
If you want to learn more about the latest ETH updates, you can read our blog post.
How will it affect my Staking account?

The Ethereum upgrades will enable Staking withdrawals for the first time since Staking was introduced to the Ethereum chain. You can continue adding to your Earn Staking Account, and for the first time you will be able to withdraw assets.

Withdraw from your Staking Account

If you’d like to withdraw from your Staking Account, here are some things to remember:

* We expect withdrawals from your Staking Earn Account to be available a few weeks after the Ethereum upgrades are complete – we’ll let you know when they’re ready.
* The time taken to process withdrawals is set by the Ethereum protocol (not Blockchain.com). We anticipate that withdrawals after the updates could take weeks or even months to process.
* You’ll remain liable for any taxes in relation to your Staking or other crypto products.

What is Ethereum (ETH)?

Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It was proposed in late 2013, and development was crowdfunded in 2014, with the network going live on July 30, 2015. Ethereum was proposed by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine.

Key Features of Ethereum

1. Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enact and verify the terms of a contract when certain conditions are met, eliminating the need for an intermediary.
2. Ether: Ether is the native cryptocurrency of the Ethereum platform. It is used primarily as a means of compensating participants who perform computations and validate transactions, and it’s also used as a “fuel” to pay for computation and storage on the network, known as “gas.”
3. Decentralized Applications (DApps): Ethereum enables the development of decentralized applications (DApps) that run on its blockchain. DApps are typically open-source and utilize smart contracts to create decentralized solutions to various needs.
4. Decentralized Finance (DeFi): Ethereum is the main platform for decentralized finance (DeFi) applications, which aim to recreate and improve financial systems without the need for traditional intermediaries like banks.
5. Non-Fungible Tokens (NFTs): Ethereum is the primary blockchain used for creating and trading Non-Fungible Tokens (NFTs), unique digital assets that represent ownership of a specific item or piece of content.

Ethereum 2.0

Ethereum is currently undergoing a major upgrade known as Ethereum 2.0 or Eth2, which aims to improve the scalability, security, and sustainability of the network. One of the key elements of Ethereum 2.0 is the introduction of a Proof-of-Stake consensus mechanism, called “Beacon Chain,” to replace the existing Proof-of-Work mechanism, making the network more energy-efficient and scalable.

Importance

Ethereum is considered one of the most significant projects in the blockchain space due to its introduction of smart contracts and its role in enabling the development of decentralized applications, reshaping possibilities in various sectors, including finance, supply chain, and entertainment.