Ethereum-cryptocurrency projects
2022.12.09 03:27
Ethereum-cryptocurrency projects
Budrigannews.com – At the time of writing, with an ETH price of approximately $1280, is the cryptocurrency that has performed the best among the top 10 with a gain of more than 4% since yesterday.
Ethereum, like numerous other cryptocurrencies, including, saw its upward movement accelerate sharply in the early evening. between 13:25 and 13:55 ET (18:25 and 18:55 GMT), went from $1255 to $1289 (+2.7%) in less than 30 minutes.
While the causes of this general rise in cryptocurrency prices are still a mystery, the announcement of Ethereum last night may pique interest in the second-largest cryptocurrency in the coming months.
The upcoming “hark fork” of the Ethereum blockchain, codenamed “Shanghai,” was the topic of discussion at the 151st Ethereum Core Developers meeting on December 8.
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As ETH moves from a “proof-of-work” (PoW) system that uses a lot of energy to a “proof-of-stake” (PoS) system, this is the next step on its road map. The “Merge” update released earlier this year effectively formalized ETH’s switch from PoW to PoS operation.
As a result, “Ethereum staking” took the place of “Ethereum mining” in Merge. We note that staking permits holders of ETH to “lock” them on the network to become “validators” and receive rewards in the form of ETH tokens for doing so without going into the technical details.
However, despite the fact that Merge has effectively substituted staking for mining in the operation of Ethereum, “staked” ETH (stETH) are currently locked onto the Beacon chain, and the Shanghai upgrade will have the greatest impact on this point.
In order to validate transactions on the network, stETH users will be able to withdraw their funds as well as any applicable staking rewards following the Shanghai upgrade. The upgrades, according to the Ethereum Foundation, were designed in this manner to “simplify and maximize the focus on a successful transition to proof-of-stake.”
This assumes the risk that validators will sell their staked ETH in large quantities as soon as the Shanghai upgrade is implemented, resulting in a sudden increase in supply that would cause prices to fall, even though the upgrade will “free up” staked ETH.
However, the ETH protocol has established a daily limit of 43,200 stashed ETH, out of a total of more than 10 million, to ensure that the cryptocurrency’s price is not affected.
