Shanghai Upgrade

Definition ∞ The Shanghai Upgrade refers to a significant protocol update on the Ethereum blockchain, specifically enabling the withdrawal of staked Ether from the Beacon Chain. Prior to this upgrade, Ether deposited for staking on the proof-of-stake chain was locked and inaccessible. The Shanghai Upgrade, also known as Shapella, introduced functionality for validators to access their accumulated rewards and their initial staked principal. This event marked a crucial step in Ethereum’s transition to a full proof-of-stake system.
Context ∞ The Shanghai Upgrade was a highly anticipated event for the Ethereum ecosystem, influencing market dynamics and validator participation. Discussions prior to the upgrade centered on potential selling pressure from unlocked Ether. The successful implementation has significantly enhanced the flexibility and attractiveness of staking on Ethereum.