The Ethereum Shapella upgrade (the Shanghai + Capella upgrades) is an upcoming update to the Ethereum network that is expected to bring significant improvements to the platform. This upgrade will activate on the Ethereum network at epoch 194048, scheduled for 22:27:35 UTC on Apr. 12, 2023. The Shanghai upgrade addresses enhancements in Ethereum's execution component (execution part) , while the Capella upgrade concentrates on refining the consensus aspect (agreement part). The concurrent implementation of these upgrades is known as "Shapella.”
One important aspect of the Shanghai upgrade is the unlocking of staked ETH. This means that users who have staked their ETH on the Ethereum network will be able to access and use their tokens once again. This is a significant development for users who have staked their ETH for various purposes, such as earning rewards or participating in governance.
The unlocking of staked ETH is made possible by the introduction of a new consensus algorithm, which is designed to make the Ethereum network more secure and efficient. This algorithm, known as Proof-of-Stake (PoS), is a major departure from the current consensus algorithm used by Ethereum, which is known as Proof-of-Work (PoW). The Shanghai upgrade, with its unlocking of staked ETH, could have a significant impact on the liquidity of the Ethereum network, which in turn could benefit LSD (Liquid Staking Derivatives) platforms. The increased liquidity could make it easier for LSD platforms to create and trade derivative products, as well as provide users with more opportunities to earn rewards on their staked ETH.
Under PoS, users can stake their ETH in order to help secure the network and earn rewards for doing so. This is a more energy-efficient and environmentally-friendly way to secure the network compared to PoW, which requires significant amounts of computational power and electricity.
The Shanghai upgrade will introduce several other improvements to the Ethereum network as well. These include enhancements to the network's scalability, security, and smart contract functionality. These improvements are designed to make the Ethereum network faster, more efficient, and more versatile, which could have a major impact on the future of decentralized finance (DeFi) and other blockchain-based applications.
Overall, the Ethereum Shanghai upgrade is an important development for the Ethereum network and its users. The unlocking of staked ETH is a significant development that could have a major impact on the market value of ETH, and the improvements to the network's scalability, security, and smart contract functionality could pave the way for new and innovative use cases for blockchain technology. SwissBorg users should stay informed about these developments and consider how they may impact their use of the platform and their investments in ETH.
How will it affect SwissBorg users?
SwissBorg will support the upgrade and hard fork. During the upgrade, top-ups and withdrawals of ETH and ERC-20 tokens will be suspended; however, all other functionalities of the SwissBorg app (exchanges, earn subscriptions and redemptions, asset analysis and Portfolio Analytics) will remain functional. Any ETH held in our Earn programs is safe.
Top-ups and withdrawals in the SwissBorg app will be suspended from 12 April 2023 at 20:00 UTC, and will be reactivated once the network is deemed stable.