Bitcoin is, as we know, the largest cryptocurrency in the world. He is followed by Ethereum which remains eternal number two on the list of most major cryptocurrencies on the planet. Ethereum’s specialty is its network which allows the creation of decentralized applications and smart contracts. These contracts are recognized as the center of decentralized finance. The shanghai update, remember, that Ethereum launched in April 2023 aimed to improve the functioning of the network. The long-awaited update unfortunately did not fulfill its hoped-for mission for the activity of this crypto network.
As a reminder. What is the Ethereum Update? It’s a stage of the Ethereum evolution plan. She organizes the passage of consensus system based on proof of work at a system based on proof of stake. But it’s not All. This transition offers Ethereum other very important advantages. Firstly, it allows for greater efficiency, security and scalability. Scalability being an ability to process a large number crypto transaction. Then, reducing consumption energy therefore the reduction in energy costs makes the costs of transaction more predictable and even more affordable. So the question that we are now asking concerns the results of the update Shanghai.
According to a report from JP Morgan, the Shanghai upgrade has not achieved the long-awaited results. So the update was not successful the amplification of the activity of the Ethereum crypto network. Calculations show that the number of daily crypto transactions would have dropped by almost 10%, according to information from the JP Morgan channel since the update was launched. These transactions went from 1.3 million to 1.2 million. Even worse the volume of crypto transactions also decreased by 20%. This volume goes from 18 billion dollars to 14 billions of dollars.
Then another question arises. Now what are the explanations of this failure and the prospects for Ethereum? This failure to update Shanghai day can find its explanations at the level of several factors. On the one hand, the weak result of the update on the costs of crypto transaction could have disappointed Ethereum users. All the world expected these transaction fees to drop. But they are remained high and very volatile. On the other hand, investors Ethereum could divert elsewhere. They would be attracted to other more innovative and efficient crypto currencies. THE Things could improve for Ethereum too.
To revive, Ethereum will need to succeed in its next stage of its development plan. The next update is already on its way. She suppose to improve the performance of the Ethereum blockchain well on. This Ethereum improvement proposal is therefore EIP-4844 or Protodanksharding. Nothing says that the coup will be successful but what What is certain is that the network must be ready to take on this challenge technological and to reassure crypto investors.
This new stage in the evolution of Ethereum will be decisive in pulling this crypto currency upwards. It is why Vitalik Buterin, the face of the Ethereum project, continues to make an urgent appeal to resolve the problems of scale. It’s necessary understand that the scaling that Vitalik Buterin talks about is the scalability which is this ability to allow more transactions. And he insists, he asks the entire crypto community to commit to solving scaling issues before the next bullish wave. According to him, transaction fees will remain very high and users could pay up to $500 in transaction fees. “If we don’t let’s not solve the scaling problem until the next wave bullish, people will be stuck paying transaction fees of 500 dollars” insisted Buterin in an online newspaper The defiant.
Ethereum’s Shanghai Update is an Important Milestone to achieve this goal of reducing transaction fees, which ultimately would ensure the sustainability of the blockchain Ethereum. The future of Ethereum depends enormously on it.
