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Major New Ethereum Update Already in Works, Drops Sooner Than You Think

Wed, 09/21/2022 - 08:38
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Arman Shirinyan
Market has not yet recovered from Merge update as developers are actively working on next one
Major New Ethereum Update Already in Works, Drops Sooner Than You Think
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Following the Merge update on Ethereum that took place only a few days ago, developers are getting ready for the next major Shanghai upgrade by updating EIPs. EIP-4895 will introduce a system-level "operation" for supporting validator withdrawals.

The new EIP will provide a way for validator withdrawals made on the Beacon chain to get transferred into the EVM. The withdrawal will have to be processed in the execution layer as soon as they are "dequeued" from the consensus layer.

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Essentially, the EIP update will introduce a new type of object into the execution payload – an operation that will separate the withdrawal feature from user transactions. With separation by type of transaction, testing in the future will be simplified, which will also lead to an increase in security.

As stated by the update author, the approach is more complex than a "pull"-based alternative. The new withdrawal type will not have any gas costs as in the context of the broader payload execution, layer operation costs are negligible thanks to the limited number of withdrawals that can reach the execution layer.

What happens with Ethereum post-Merge

Following the finalization of the massive update for Ethereum, the price of the second biggest asset tumbled down by more than 20% in a matter of a few days as most investors went with the "sell the news" narrative rather than betting on the long-term growth of the asset.

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Unfortunately, most analysts expect a rapid downfall from here as current conditions on the market will not help Ethereum or any other digital assets in the foreseeable future, at least while United States monetary policy is tightening.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.