The Upcoming Hard Fork on Ethereum: What to Expect?

On April 12th, Glassnode predicted in a report on April 11th that out of the 18.1 million ETHs on the beacon chain in the first week of Shanghai’s hard fork execution on Ethereum, an estimated 170000 ETHs will be unlocked, accounting for less than 1%. This number includes a pledge reward worth 100000 ETHs (worth $190 million) and a pledge ETH worth 70000 ETHs (worth $133 million).

Glassnode: It is expected that less than 1% of the pledged ETH will be unlocked after the upgrade of Ethereum Shanghai

As many people in the cryptocurrency world know, Ethereum’s upcoming hard fork is expected to occur soon. This has been long-awaited and there’s been a lot of speculation about what to expect, especially regarding the amount of Ethereum (ETH) that will be unlocked during this time.

What is Ethereum’s Hard Fork?

To begin with, it’s important to understand what a hard fork is. Essentially, a hard fork is a change to a cryptocurrency’s software that creates two versions of the blockchain, with the old version being incompatible with the new version. This can happen when the community decides that changes need to be made to the blockchain, such as fixing bugs or adding new features.

The Shanghai Hard Fork

The upcoming hard fork on Ethereum, known as the Shanghai Hard Fork, will be the biggest upgrade to the network since the launch of Ethereum 2.0. This update is designed to improve the efficiency of the network by reducing transaction fees and increasing its capacity.
According to a report by Glassnode on April 11th, there are an estimated 18.1 million ETHs on the beacon chain in the first week of Shanghai’s hard fork execution. Glassnode predicts that around 170,000 ETHs will be unlocked during this period, which accounts for less than 1% of the total.

What Will be Unlocked?

Out of the 170,000 ETHs that are expected to be unlocked during the hard fork, around 100,000 ETHs will be a pledge reward, worth approximately $190 million. This pledge reward is given to users who participate in staking their ETH for the beacon chain. Staking ETH on the beacon chain helps validate transactions and secure the network, which is highly incentivized by Ethereum.
The remaining 70,000 ETHs will be pledge ETH, worth around $133 million. This pledge ETH is essentially a deposit put down by users who want to become validators on the network.

What to Expect During the Hard Fork?

During the hard fork, users can expect to see some disruptions to the network. This is because the network will go through a period of adjustment to the new changes, which can result in slower transaction times and higher fees.
However, these disruptions are expected to be short-lived and the network will eventually return to normal. In fact, the hard fork is expected to bring about many improvements to Ethereum, making it even more efficient and secure.

Conclusion

The upcoming hard fork on Ethereum is an exciting time for the cryptocurrency world. With the Shanghai Hard Fork set to bring about many improvements to the network, including reduced transaction fees and increased capacity, there’s a lot to look forward to.
While there may be some disruptions during the hard fork, users can rest assured that the network will return to normal soon enough. Overall, the future looks bright for Ethereum, and the hard fork is just the beginning.

FAQs

Q: What is a hard fork?
A: A hard fork is a change to a cryptocurrency’s software that creates two versions of the blockchain.
Q: What is the Shanghai Hard Fork?
A: The Shanghai Hard Fork is the biggest upgrade to the Ethereum network since the launch of Ethereum 2.0.
Q: What can we expect during the hard fork?
A: During the hard fork, users can expect some disruptions to the network, such as slower transaction times and higher fees, but the network will eventually return to normal.
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