The Shapella hard fork is a major development for Ethereum and will pave the way for bigger and better scalability solutions in the future. In preparation for the hard fork, the Shapella upgrade was tested on the Goerli testnet to ensure that everything was running smoothly before the Ethereum validators were able to withdraw their Ether (ETH). Unfortunately, the test run did not go as smoothly as planned, as several validators did not upgrade their client software in time for the fork.
Tim Beiko, Ethereum core developer, noted that validators had “less incentive” to make the upgrade given that the Goerli ETH is worthless – so much so that he suggested validators should properly upgrade ahead of the fork’s deployment on the Ethereum mainnet. Beiko’s words held true, as the Shapella hard fork was successfully tested on the Goerli testnet and is expected to take effect on the Ethereum mainnet in early April.
The hard fork rollout marks the next step in an innovative journey for Ethereum as the staked ETH stored in the Beacon Chain will now be “pushed” to the execution layer. This development is a milestone due to the fact that it brings Ethereum one step closer to a fully functional proof-of-stake system. Although Shapella consists of five different Ethereum Improvement Proposals (EIPs), EIP-4895 has been a behemoth in terms of anticipation.
The end result? Developers can now test smart contracts on Goerli using a testnet cryptocurrency called GoETH and Ethereum developers and validators are granted access to the Holli testnet. As Holli is a permissioned testnet, validators are only approved entities able to operate validator nodes and the introduction of short-term testnets has enabled validators to test the setup of their nodes prior to the hard fork’s deployment on the Ethereum mainnet.
Furthermore, in order to prevent a massive ETH selloff, developers have put safeguards in place that limit the number of validators that can withdraw from 57,600 to partial withdrawals only. This means that validators can withdraw any accrued rewards, but their 32 ETH must remain locked up on the Ethereum mainnet. This figure is expected to change to 0.32 ETH in the future, and will be adjusted by the Ethereum Improvement Proposal EIP-2028.
Through this comprehensive rollout and the development of new client software across different programming languages, Ethereum is working hard to make sure its network is secure, trusted and highly innovative. It’s an exciting time to be an Ethereum investor, as the Shapella hard fork gives us a glimpse into the larger proof-of-stake vision that Ethereum is working towards. We can not wait to see what Shapella delivers for the Ethereum mainnet and beyond.