An update on the progress of Ethereum Proof of Stake - Shanghai update is on its way

Last updated
1.24.2023

One of the major events in the cryptocurrency world was when Ethereum switched from Proof of Work to Proof of Stake, the event known as the merge was completed on September 15, 2022. Ethereum drastically reduced its energy consumption to secure the blockchain and currently estimates that it uses around 0.0026 Terrawatt hours per year, compared to 78 Terrawatt hours per year previously, which is roughly the same amount of energy that Netflix uses on its servers (94 Terrawatt hours per year).

Staking on Ethereum has been a great success so far. As of this article, 16 million ETH is staked and there are over half a million validators on the network. An epoch on Ethereum PoS lasts for 6.4 minutes and during each epoch, validators on the network are attested and it is one of the rewards for producing blocks with transactions. There have been few problems with the network since the transition to Proof of Stake and NBX has its own validator that has been running for around a year now.

Currently, work is being done to implement functionality to withdraw staked assets in the so-called Shanghai update. The latest news is that a testnet recently went live to test the withdrawal function and security aspects of this. The goal is to implement the Shanghai update in March 2023.

NBX closely follows the development of Ethereum staking and will consider the possibility of offering staking services on Ethereum after the Shanghai update is implemented.

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