On Tuesday, Ethereum developers successfully launched the Goerli testnet, an extensive dress rehearsal of the network’s Shanghai Upgrade set to happen in April. Even though there was a small issue stemming from validators operating older versions of the clients, the developers report that they were able to onboard those validators.
Following the testnet launch, leading Ethereum developer, Parithosh took to Twitter to declare that the next step was launching the Mainnet.
The Goerli Testnet
With Goerli going live, it is now possible for validators to mimic the process of withdrawing staked ETH from the blockchain. But it’s unlikely that many validators would be interested in trying out the process since testnets only allow transfers of fake money. However, the staked ETH withdrawals will become real in the coming days.
Since late 2020, when ETH staking started, stakers have deposited over $29 billion worth of ETH on the Ethereum blockchain. But currently, those funds and the accumulated rewards cannot be withdrawn from the network. However, that will change when Shanghai launches next month.
When is Shanghai Going Live?
So far, the developers have not yet disclosed the exact date when Shanghai is expected to go live. But many anticipate it could happen within the first two weeks of April, considering the mounting pressure from intermediary companies offering staking services to its users.
The Ethereum developers are doing everything possible to roll out the upgrade as quickly as possible. They even removed other vital improvements to the Ethereum network from Shanghai in January to speed up its launch.
In addition, they also avoided adding minor technical tweaks to the upgrade. This move was criticized by some Ethereum core developers, calling it an unwise sacrifice that will likely cause damage to the blockchain’s long-term health.
Meanwhile, the Shanghai upgrade is coming at a time when US regulators such as the Securities and Exchanges Commission (SEC) are targeting the staking services.
Recently, the SEC penalized crypto exchange Kraken for not registering its staking service with the regulator. Also, the Commission’s Chair, Gary Gensler, has continued to insist that Ethereum is a security. Therefore, it remains to be seen what action the SEC will take when Shanghai is released.