New details have been revealed on the specific content of Ethereum's next major update; the Shanghai update. In addition to addressing Ethereum's transaction speed, the update will also bring lower transaction costs for large users, according to a new Ethereum Improvement Proposal (EIP).

Ethereum Improvement Proposal (EIP) 3651

The Shanghai update will be carried out sometime around September next year. Among other things, the update will make it possible to move staked ether. Currently, Ethereum (ETH) strikers are forced to lock down their tokens for extended periods of time. This change will make staking ether a lot more attractive for many holders.

Another proposal that has been announced is EIP-3651, called WARM Coinbase. This software update will significantly reduce transaction costs for large participants in the Ethereum network. The name has nothing to do with the crypto exchange of the same name. Coinbase is also the name of Ethereum's software program that participants use to place transactions in blocks.

Currently, transactions need to communicate with the program multiple times. This takes a lot of time and therefore also leads to higher transaction costs. EIP-3651 should solve this problem and limit the number of interactions between transaction requests and the software. Currently, traders also pay fees for failed trades. This will no longer be the case with the update. In addition to validators, traders will also benefit greatly from this change.

More transactions per second on Ethereum

Ethereum developers are currently preparing the Shanghai update. They use a testnet to see which proposals are realistic and which can ultimately be included in the update. This testnet is called Shandong, named after a Chinese province.

The most important proposal will probably be in the update in EIP-4895. This will bring with it the aforementioned ability to move staked ether and earned returns.

Another big change that is expected is sharding. This technology will significantly increase the number of transactions per second. Currently, the Ethereum network processes several dozen transactions per second. Using sharding, this number can go to potentially 100 thousand transactions per second. This is possible by randomly approving several transactions in a shorter time.