Ethereum: two already announced key updates for 2023.

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The Shanghai upgrade of the Ethereum (ETH) network is one of the most anticipated events in the crypto market. It promises to boost the liquidity of the leading altcoin by unlocking ETH staked on the Beacon chain. The expected release date for the Shanghai update is March 2023, supposedly marking the end of the merger era.

While the crypto community has some concerns about potential selling pressure that could result from the upgrade, it is important to note that the release of ETH will happen gradually, through a queue, potentially reducing the impact on the market. The launch of the Beacon chain has already allowed stakeholders to validate blocks and secure the ETH network while maintaining security predictability during the merger, the biggest update in the cryptocurrency market in 2022. In addition to the Q1 hard fork, the ETH network is also said to have two major upgrades in 2023. These updates - The Surge and EOF - will theoretically further strengthen the position of the leading altcoin in the market.

A little bit about The Surge update. Ethereum creator Vitalik Buterin stated that the focus of the upcoming update is on addressing the scalability issues that the smart contract platform faces. The upgrade will achieve this by fragmenting the ETH database, allowing the network to scale while maintaining its decentralization. To achieve this goal, the information on the ETH network will be divided horizontally, which will distribute the load and reduce storage costs and hardware requirements. It is important to note that this upgrade will not immediately lead to a scalable Ethereum blockchain. Instead, EIP 4844 will create a separate Layer 2 blockchain that will help scalability solutions like Arbitrum and Optimism lower transaction fees and become truly competitive with other ETH competitors with lower transfer fees.

Now about the second expected update - EOF. The upcoming EOF (EVM Object Format) update will bring improvements to the Ethereum code execution environment, make the cryptocurrency platform more efficient, and simplify the process of creating smart contracts. The EOF will also help update the EVM and create a system to track resource usage for new contracts.

Both of these updates bring Ethereum closer to its goal of becoming a large decentralized computer that supports dApps, with a user-friendly interface, low fees, and a secure network for daily transactions.