Ethereum developers settled on eight proposals for the Shanghai update

Developers at the Ethereum Foundation settled on eight Ethereum Improvement Proposals (EIP) to explore the Shanghai Update, the next major upgrade after the merger and its move to proof-of-stake consensus, the Ethereum Foundation announced on November 24.

On a weekly call, developers decided which features should be included in the next hard fork, which will be released in the second half of 2023. According to the Ethereum Foundation JavaScript Team on Twitter:

One of the main features expected to be in the Shanghai hard fork, the Beacon Chain staked Ether (ETH) is set to be unlocked, allowing the assets to be withdrawn with the upgrade, meaning users with staked Ethereum before the merge will be able to access these tokens, as well as other rewards. A previous timeline expected locked ETH to be available 6-12 months after the merger.

Among the approved proposals is EIP 4844, which focuses on leveraging proto-danksharding technology and is expected to increase network throughput and cut transaction fees, a significant improvement in scalability. Other EIPs address the upgrade of Ethereum Virtual Machines, including EIP 3540, EIP 3670, EIP 4200, EIP 4570, and EIP 5450.

The Shanghai testnet version, dubbed Shandong, went live on October 18, allowing developers to work on implementations such as the Ethereum Virtual Machine (EVM) object format, is one of the community’s most anticipated updates, as it separates coding from data, which can benefit on-chain validators.

As previously reported by Cointelegraph, the merger was the first step in this five-part process, which has since been elaborated by a number of Ethereum developers, ecosystem participants and commentators. The most important change of the merger is the drastic reduction in power consumption, which should reduce Ethereum’s energy consumption by 99%.