Ethereum is the most extensive decentralized applications (dApps) ecosystem, spearheading significant advancements in the blockchain sector. As the first to implement smart contracts on a blockchain network, Ethereum has set the stage for numerous revolutionary trends in the current market, including decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, metaverse, and Web3. It is also a driving force with the potential to bring blockchain technology into the mainstream.
Nonetheless, developers and users’ growing adoption of the Ethereum blockchain has pressured the infrastructure, increasing network congestion and transaction fees.
Recognizing the need for a transformative change, Ethereum supporters and developers at the Ethereum Foundation sought to create a more sustainable, scalable, efficient, and real-world application-ready dApps ecosystem. This led to the conception of Ethereum 2.0 - a set of essential upgrades designed to enhance the Ethereum network's scalability, security, and sustainability. This transition, known as the Ethereum 2.0 roadmap, has been a primary focus for the Ethereum community in recent years.
Check out our latest blog for a recap of the Ethereum 2.0 roadmap so far and the next stage.
Danksharding After the Shanghai/Capella Upgrade
The recently concluded Shanghai/Capella update represents a major milestone for Ethereum. Identified as EIP-4895, this update allows ETH validators to release their staked ETH within the network. Consequently, staked ETH and related rewards will become available, significantly boosting ETH liquidity in the cryptocurrency market.
Learn more about the ETH price prediction following the Shanghai upgrade in our blog.
The third major upgrade phase, referred to as Danksharding, will emphasize horizontal database scaling. This improvement will delegate the task of handling large amounts of data generated by layer 2 rollups.
Initially, it was anticipated that Ethereum would incorporate sharding capabilities during its Ethereum 2.0 evolution. However, an update on April 5, 2023, on its official website clarified that developers will no longer pursue introducing shard chains or sharding to the Ethereum network.
