Ethereum’s Next Big Upgrade Comes With the Risk of Added Turbulence
- Ether holders will be allowed to withdraw staked tokens
- Some nodes may have issues with keys and returning user funds
An Ethereum cryptocurrency token.
Photographer: Jack Taylor/Getty ImagesCrypto enthusiasts are about to get some good news: The Ethereum blockchain’s next big software upgrade is poised to happen on Wednesday. But like almost everything else in the digital-asset world these days, the long-anticipated tweaks won’t come without complications.
The overhaul, dubbed Shanghai, follows last year’s game-changing “Merge,” which replaced power-hungry computers with a process involving staked, or pledged, Ether tokens and so-called validators to order transactions on the most commercially successful crypto network. Now, Shanghai will allow withdrawals for the first time by owners of Ether who have staked their coins since December 2020. Owners of the cryptocurrency who stake earn a yield that is paid out in additional Ether tokens.