Ethereum Is One Step Away From Staked ETH Withdrawals

Ethereum, the world’s second-largest cryptocurrency platform, is reportedly just one step away from enabling its users to withdraw staked ether (ETH) from the network. Staked ETH refers to the portion of the cryptocurrency that people have locked away to support the security and transaction processing on the Ethereum network. The feature, which is also known as “churn,” is expected to go live soon, thanks to a recent upgrade that allows users to access and transfer their locked ETH. However, there are still some technical challenges that need to be resolved before staked ETH withdrawals will become a reality. Nonetheless, this development is significant as it will make it easier for users to access their funds and use them for other purposes.

Ethereum’s Shanghai Upgrade Successfully Completes Final Testnet Rehearsal

The much-anticipated upgrade to Ethereum’s network, known as Shanghai, is on track for its April launch with the successful completion of the Goerli testnet. The network’s core developers have confirmed that the upgrade will enable the withdrawal of staked ETH, providing more flexibility to Ethereum users. The testnet deployment was briefly delayed due to some validators running older client versions, but the issue was quickly resolved. With Goerli up and running, validators can now simulate the process of withdrawing staked ETH from Ethereum.

The Goerli testnet launch initially faced challenges in attracting enough validators to try it out. One of the challenges with testnet validators is that there is less incentive to run a validator and monitor it given that ETH used in the testnet is worthless. However, when the upgrade goes live in April, the financial stakes will become real as Ethereum users withdraw staked ETH.

Since Ethereum began its transition to a proof-of-stake model in 2020, over $29.22 billion worth of ETH has been deposited with the network, accounting for about 14.67% of all ETH currently in circulation. However, these funds cannot yet be withdrawn from Ethereum. The Shanghai upgrade will enable this withdrawal capability and by the looks of the Goerli testnet execution, the transition should go smoothly.

Despite the financial pressure to launch Shanghai and flood validators with huge amounts of passively-generated profit, Ethereum’s core developers have been cautious to hasten the release of the upgrade. In January, the developers removed other much-needed improvements from Shanghai to accelerate its release. However, they continued to avoid including minor technical tweaks with the upgrade, a move that some core developers criticized as an unwise sacrifice made at the expense of Ethereum’s long-term health.

Earlier this month, core developers confirmed that if Goerli launched on or around March 14, the real Shanghai upgrade could be expected to go live by mid-April. Nonetheless, users may not be able to retrieve their funds immediately after the upgrade goes live, and it may take weeks or even months to process requests, depending on user demand.

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