Ethereum has seen its validator base cross the 500,000 mark

Courtesy the Shanghai update Ethereum has see a surge of validators added to the network. This update is scheduled and on track for March 2023. Now whats the big deal?

Well… It’s a significant number and here’s why

In simple words, The Shanghai update is like getting new tools for Ethereum. We all know its scale and the network capability, it needs regular security, speed and scalability interventions, and this is what the update will provide.

The main focus of the upgrade is to improve the efficiency of the Ethereum Virtual Machine (EVM) and make it more robust. This will be done by implementing a new instruction set, called “Ethereum Instruction Set Architecture (EISA)” which will allow for more complex yet efficient smart contracts to be executed on the network.

Additionally, the update will also include changes to the Ethereum’s consensus algorithm, which will help to improve the security and scalability of the network.

But who are these validators?

Validators are participants in the network. They are responsible for maintaining the integrity of the blockchain and in turn are rewarded for it. Maintenance and validation is done by verifying and processing transactions, and by creating new blocks to be added to the blockchain.
You see, most networks work on incentivizing good behavior, and rewarding the participants for abiding by the rules.

Becoming a validator is a lengthy process but your first step to activation is to deposit 32ETH on the the network.

Thats cool and all but why do these 500,000 validators matter?

The Ethereum network has relied on validators for its network, since the PoW to PoS hardfork that happened last year in September. As we just explained, you need to deposit 32 ETH to become a validator and here’s how the picture unfolds after the Shanghai update:

Validators who’ve staked their hard earned ETH, will finally be able to withdraw their ETH plus any rewards earned from having staked so far.

To understand better, by staking, you earn ETH as a daily reward, those that wanted to secure the network early on have been rewarded for months.

But, wont this lead to a significant number drop of validators?

Everyones greedy and could withdraw their ETH, rewards, & walk out of the system?! Yes, possibly so.

The geniuses over at the Ethereum Foundation have already forecasted this. To prevent an exodus; withdrawals are capped at a total of 43,200 ETH per day.

Only time will tell if the shift to Proof of Stake was the right move for Ethereum but almost all developers believe so!

Zein Zaioud — Founder @ Verse.audio

If you enjoyed this article, I’d really appreciate it if you share it around & follow me for future articles about Web 3, Crypto,& NFTs, See Ya!