- Ethereum has successfully completed the Shapella upgrade on Sepolia testnet.
- The upgrade brings a significant change for Ethereum validators, allowing them to withdraw their staked ethers from the Beacon Chain.
- However, the crypto industry faces regulatory uncertainty in the US due to the SEC’s scrutiny of staking programs.
Shapella Upgrade Successfully Locked On Sepolia Testnet
The Ethereum (ETH) network is making progress toward transitioning to the proof-of-stake (PoS) consensus mechanism. On February 28, 2021, the Ethereum Shapella (Shanghai/Capella) upgrade was successfully locked on the Sepolia testnet at epoch 56832. The Sepolia testnet is the second of three planned testnets that will trigger the Shanghai upgrade.
Previously, Ethereum depended upon power-thirsty Proof-of-Work (PoW) mechanism which has been disapproved by global regulators due to its negative environmental impact caused by non-renewable energy sources. PoS is expected to be more energy efficient and sustainable, making it a better alternative.
Withdrawable Staked Ethers
The Shapella upgrade brings a significant change for Ethereum validators as they can now withdraw their staked ethers from the Beacon Chain to the execution layer. This development gives validators access to their staked ethers. Additionally, new features are introduced in both execution and consensus layers which improve overall performance of the network.
Unfortunately, Ethereum and other PoS secured blockchains face regulatory uncertainty particularly in United States following Kraken $30 million settlement with SEC earlier this month where SEC accused Kraken cryptocurrency exchange of issuing unregistered securities through its staking program. As a result, Lido Finance – one of largest staking as service provider expressed concerns over SEC’s scrutiny of Staking programs.
Crypto Regulatory FrameworksCoinbase Global Inc CEO Brian Armstrong warned that United States risks losing its status as financial hub due to stringent crypto regulatory framework which highlights need for US consider impact of regulations on crypto industry .
< h2 > The Path Ahead h2 > The next update expected to ensure timely Shanghai upgrade is Goerli testnet ,Ethereum core developers expect Shanghai upgrade complete by March marking full transition to proof-of-stake consensus mechanism .