Try Quests to earn cryptoETH Flash Bounty: What’s Next?
Introduction
The most difficult component of the shift to Ethereum 2.0, a multi-part upgrade path for the smart contract blockchain that started in 2015, was switching from the power-hungry Proof of Work to Proof of Stake.
Ethereum successfully 'Merged' on September 15; nevertheless, the network will undergo more upgrades known as the Surge, the Verge, the Purge, and the Splurge in the near future. Collectively, the enhancements will improve Ethereum's proof-of-stake by making it more scalable and secure (PoS).
Vitalik Buterin, Ethereum's co-founder, says the Merge is only 55% complete. Surge, Verge, Purge, and Splurge are coming to the network. Vitalik says Ethereum can execute 100,000 transactions per second once all steps are complete (compared to the 15 TPS it allows now). This will fix Ethereum's gas fee problem. Each upgrade focuses on scalability and security to improve the Ethereum network.
Despite being worked on simultaneously, all these enhancements will take a while to deploy. Next step is the Shanghai update, which will allow ETH withdrawals. It will lower data costs on the main blockchain, lowering Layer 2 transaction prices like Arbitrum or Optimism.
Good news may have boosted blockchain. In this dashboard, we'll look at developing trends owing to the Merge and expected enhancements.
Method
Information from the fact event logs, fact transactions, ez eth transfers, ez dex swaps, and fact blocks tables in the Ethereum database's core schema was combined for this analysis.
Data at the transaction level was located in the first two tables.
The third table shows the data gathered from the cryptocurrency exchanges where ETH was traded.
The same information, this time for DEXs, was presented in Table 4.
Last but not least, information on miners' wallets and previous blocks was retrieved using the final table.
During the period of September 13–15, the Ethereum network underwent its final round of updates before the Merge. There was a "Bellatrix phase" there, which kicked off the merger process by updating the node operators. Dates between these ranges were excluded from inquiries.
What is the Shanghai Upgrade?
Immediately following the rollout of Ethereum Merge, the network will be updated again with the Ethereum Shanghai upgrade. There are three major problems with Ethereum, and the Shanghai update fixes them. It includes modifications to the EVM object format, withdrawals from the Beacon Chain, and a decrease in the L2 cost. EIP-3540, often known as the EVM object format, is a new addition to the Shanghai update. The most important part of this revision is that it will finally decouple the code from the information. There's potential for this to be incredibly useful for on-chain validators. Along with the partition, EIP-3540 also adds a new contract code section that may be used to address and resolve tricky aspects like Account Abstraction, control flow in EVM, and EIP-3074. Beacon chain withdrawal latency is fixed in the Shanghai release as well. Until the Shanghai update goes live, Ethereum staking users will be unable to access the ETH they have placed. The Ethereum Shanghai upgrade delivers on the community's number one wish. With the new features, Ethereum's infamously high gas prices will be reduced. The modifications will be accomplished by standardizing block sizes and enhancing the block's CALLDATA capabilities. Six to twelve months after The Merge, the Ethereum Shanghai update is anticipated to go live.
For those who have staked Ethereum, EIP-4895 may be the most important aspect of the Shanghai Upgrade. The proposed solution is to implement a system operational support to back the withdrawals and permit the asset to be pulled from the Beacon Chain.
To get into the nitty-gritty of it, the token withdrawal is recorded as a new 'operation' or item in the blockchain. Withdrawals are processed independently of regular business because they come straight from the system rather than the user.
Since no gas expenses are assessed when unstaking an asset, the withdrawal process is likewise unique. That's because there's a cap on how many withdrawals can be processed at once, which keeps running costs down and gas expenses down to a minimum.
Reference:
✍🏻 Conclusion
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Since September 15, the number of new Ethereum users has been rising steadily.
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After the Merge, everyday user transactions increased.
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After the Merge, Ethereum transactions/day and ETH transacted/day climbed somewhat, especially on Merge day (September 15) and the two following days.
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Merge reduced transaction fees. The Merge decreased fees despite not directly targeting them.
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After Merge, more transfers were made. Less swapping and withdrawing has occurred. After the Merge, more people are using Ethereum's protocols and platforms.
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With fresh upgrades coming, many whales stopped swapping ETH to hoard their tokens for the next big release (possibly the Shanghai upgrade). Despite more swaps following the Merge, less ETH was swapped.
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Several good patterns have developed after the Ethereum Merge upgrade, according to our results. This will increase transaction volume, user engagement, DEX swap volume, block throughput, staking platform use, the NFTs ecosystem, and power consumption. Long-term, it will boost the price of ETH, other cryptocurrencies, and DeFi platforms like AAVE and Compound (after the inflation issue in the whole world and the bearish state of market).
The Ethereum network will likely introduce more functionalities (like the sharding and Shanghai upgrades, among others). Ethereum's Proof-of-Work system couldn't be updated. After migrating to PoS, the Ethereum ecosystem, with all its practical improvements, has a bright future.
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About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I'm Hamed, a civil engineering Ph.D.
student interested in data analysis.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please take a look at my various contact details and let me know what you think.
:telescope: Findings:
As can be seen in the right side charts, since September 15, the number of new Ethereum users has been risen smoothly.
After the Merge, based on daily transactions count’s chart, existing users activity increased.
After the Merge, Ethereum transactions/day and ETH transacted/day climbed somewhat, especially on Merge day (September 15) and the two following days.
Merge reduced transaction fees.
:telescope: Findings:
One of the major issues with NFTs marketplaces interactive on the Ethereum network was, like decentralized exchanges, the high transaction and gas fees associated with this blockchain. This may be one of the key attractions of NFTs on other blockchains like Solana, Flow, and so on for some consumers.
When the transaction rate of the Ethereum blockchain increases and transaction fees decrease, the NFT ecosystem will flourish, with futures upgrades.
After the Merge update, the number of daily NFT sales has been on the rise, as shown in the preceding chart.
:telescope: Findings:
Decentralized exchanges (DEXs), notably those based on the Ethereum network, have struggled with a high transaction fee since their inception. When a result, user activity on these DEXs will increase as the fees for transactions is reduced by future upgrades.
I have analyzed swap activity following the Merge upgrade, and the long-term benefits of this change are readily apparent: The daily volume of swaps on Ethereum DEXs has been growing steadily since the Merge upgrade.
35% of ETH whole volume for swapping (buy or sell) on Dexs, send and receiving from Cexs sold before and after the Merge was through DEXs, whereas 11% was send to Cexs. After the Merge, DEXs sold more ETH.
With fresh upgrades coming, many whales stopped swapping ETH to hold their tokens for the next big upgrade, possibly the Shanghai upgrade. Despite more swaps following the Merge, less ETH was swapped.
