5 things that Ethereum Shanghai upgrade validators need to pay attention to

Ethereum Shanghai upgrade is just around the corner, and Ethereum (stETH, mining pool ETH...) will finally be able to withdraw from the beacon chain. Regarding the Shanghai upgrade, the foundation has released a new FAQ, and I think it is necessary to share a few points with you:

1. There are two ways to withdraw cash

2. How long does it take to queue for withdrawal?

3. This is a new transaction type

4. How to test

5.Private key custody issue

1. Two withdrawal methods:

As we all know, the minimum deposit for being a validator in Ethereum is 32 ETH, and then you can slowly earn consensus rewards.

Partial withdrawal: If you only want to withdraw the consensus rewards you have earned over the years (ranging from 0 to 4 E), the process is very fast and there is almost no queue.

Full withdrawal: If you want to withdraw the principal (32 E) and interest, it will be slow and you will have to queue up because it involves network security. The former is to receive salary, and the latter is to resign.

2. How long does it take to queue for full withdrawal?

The formula is too complicated so I won’t list it here, and I will just give you the data: Now there are 50w+ nodes, and up to 1,800 nodes can be retired every day.

Calculated at $1600 and 32 E, that is 288w USD worth of Ethereum. Assuming 10% of the nodes want to withdraw, the waiting time is about 1 month. In addition, the more nodes there are, the greater the withdrawal amount, or vice versa.

Trivia: Now you have to queue up to become a validator in the Ethereum network, and the daily entry and exit numbers are calculated using the same algorithm. If we calculate based on 500,000 nodes, the number is 1,800 per day, which can ensure a smooth and orderly soft landing of the Ethereum consensus mechanism.

3. This is a new type of transaction

This is a completely new type of transaction, and it is not even a traditional "transaction". Instead, after the withdrawal is completed, your wallet balance is directly increased, and no Gas is even required. After all, in a broad sense, it is also a cross-chain in a sense.

Trivia 2: For other PoS chains, enabling withdrawals is a matter of developers clicking a switch. This is not the case for Ethereum, because Ethereum is actually two chains. The familiar one is Ethereum's execution layer (EL); and the beacon chain is the consensus layer (CL) used for staking. Allowing withdrawals is actually a cross-chain operation. It is easy for the Beacon chain to know the situation on ETH, but it is difficult to do the opposite.

4. How to test?

It can be tested on Goerli, but many people cannot use G network. The considerate Ethereum Foundation specially designed the "zhejiang" test network for everyone to test later. (This name is quite interesting)

5. Private key custody issue

When you are doing Staking nodes (mainly mining pools or Solo Staking, you have the private key in this case, LSD method does not have it), you should have filled in a withdrawal address. The private key of this address and the private key of the node should be kept safe! If you lose it, it will be completely lost.

Finally, I wish the Ethereum validator family more blocks. If you want to become a member of the family, you are also welcome to become a validator in various forms (32 ETH is enough). Interested friends are also welcome to send private messages to the author @0x Todd on Twitter to communicate.

About Ebunker——An Ethereum long-termist, he pays close attention to Ethereum technology development, proposal upgrades, and community changes, and shares research and opinions on key Ethereum tracks such as Staking, L2, and DeFi.

Currently, Ebunker includes businesses such as Ebunker Pool (a non-custodial Ethereum staking pool) and Ebunker Venture (Ethereum maximizing venture capital).