Another major update after the Ethereum Paris upgrade (merger, consensus to POS) is coming – Shanghai upgrade! At present, the Ethereum core community with thousands of professional developers has undergone 15 mainnet upgrades since 15 years, and this Shanghai upgrade will provide unlocking capabilities for the $23 billion POS staking ETH locked on the chain, accompanied by many EIP integration for GAS optimization.
Let’s learn more about the role, principle, and application direction of those EIP proposals that will be activated by the mainnet
1.1 Mainnet upgrade
Ethereum proposed 4 major stages in 2015: frontier, homestead, metropolis, and tranquility. It is well known that the “quiet” stage is also marked by the full switch of the Ethereum consensus algorithm from POW computing power mining to POS staking mining 2 months ago, and now he is the chief public chain that is energy-efficient, secure and sufficiently decentralized
Each mainnet upgrade is named Berlin, Paris, Shanghai and other place names, and there are many mainnet upgrades in history that have brought about great changes
1.2 Review of 5 August 2021 – London Upgrade
At a block height of 12,965,000, Ethereum completes a hard fork upgrade codenamed “London” involving a total of five proposals
The most influential was the launch of EIP-1559, which was founded by Ethereum founder Vitalik · Buterin proposed that from now on every transaction on Ethereum will burn the base gas fee, which will automatically reduce the circulating supply of ETH and allow the Ethereum token to enter the deflationary era from now on
Take a chestnut
EIP-1559 changed the gas fee calculation logic of the highest price, before users in order to package their transactions in time, users need to pay miner fees at a higher price, the higher the bid, the greater the probability of being prioritized for packaging, to a certain extent, it will cause the unlimited growth of gas fees
After the upgrade, the transaction fee is divided into the base fee and the tip, and the tip gives the miner an incentive to bid for blocks, and the base fee will be destroyed. Although there is still a bidding part, miner returns have fallen by about 20%, and the economic model has shifted to deflation
Essentially, 1559’s design takes advantage of the second price auction model, which ultimately makes the price paid by all transactions in the same block basically the same, which is fairer to users (i.e., because the transaction paying the base price will always be packaged, distinguishing between urgent transaction needs and regular transaction needs).
2. Shanghai upgrade
Why is it urgent?
In the past, it was common to carry out a major upgrade only once in one or two years, and heavyweight upgrades such as merger consensus conversion would test the stable operation of the test network in advance for 1-2 years before really entering the mainnet upgrade, so why is this Shanghai upgrade so urgent? What about the EIP that will be finalized after only 2 months?
The core factor is that all transactions on the merged Ethereum network will no longer be verified by energy-intensive “miners”, but by individual and organizational “validators” who have deposited or staked large amounts of ETH. For validators, the ETH they stake can generate and collect new ETH, and these so-called “new ETH” are their rewards for proving verified transactions and securing the network.
But the current Ethereum, which can only deposit ETH but cannot withdraw ETH, with a total staking value of nearly $23.5 billion, is “trapped” on the Ethereum network.
If the unstaking function is not opened as soon as possible, the attractiveness of staking ETH will be greatly reduced, and there will not be so many people entering the Ethereum network in the future, which will undoubtedly have a huge impact on the future development and network security of Ethereum.
3. Interpretation of details
Shanghai upgrade records submitted according to the latest GitHub No. 10-28
3.1EIP-3651: WARMER COINBASE
What is he?
THE TRANSLATION OF THIS TITLE IS INDEED CONFUSING, AND THE COINBASE HERE IS NOT THE COMPANY OF THE EXCHANGE, BUT COMES FROM THE CONCEPT OF BITCOIN, THAT IS, THE FIRST TRANSACTION IN A BLOCK IS A SPECIAL TRANSACTION, CALLED A COIN-CREATION TRANSACTION OR COINBASE TRANSACTION, WHICH WAS DESIGNED IN THE EARLY DAYS FOR MINERS TO PACK AND COLLECT GAS TIP INCOME FROM MINING.
Warm and cold, in fact, refers to whether this execution of this transaction is pre-loaded, affecting the miner’s gas fee for packaging coinbase transactions
- If there is no preloading, it is cold, and the gas fee is higher
- If there is preloading, it is warm, the gas fee is lower
What’s the use?
Now the transactions packaged by miners may be used for more purposes, such as ERC-4337 used to collect user signatures, batch transactions, and secondly, the same principle can be used to achieve meta-transaction payment with a combination of multiple tokens.
- Prior to EIP-3651, there was an incentive to use ETH for payment
- After EIP-3651, the ERC20 payment method is more incentivized
In short, it is a proposal for the type of transaction that affects the incentive
3.2EIP-3855: Added PUSH0 command
What is he?
For EVM, the Ethereum Virtual Machine (system that executes contract code), there are many instructions designed, but the operation instructions designed to push 0, that is, for the value 0, are missing before, to press into the stack.
This EIP adds the PUSH0( 0x5f) instruction, which pushes the constant value 0 onto the stack, which requires 2 gas
What’s the use?
When there was no push0, there were some operations that relied on 0 for offsets, such as remote call calls and returns, and many parameters were 0, and the original operation of 0 could only use the instruction PUSH1 0 (that is, press a number, the number is 0), this operation consumes 3 gas, followed by push1 and 0 Each occupies the byte storage of one initialization code, resulting in a 2*200gas higher cost of deploying this contract
The EIP also counts the resulting gas loss: 340,557,331 bytes of existing accounts are wasted on PUSH1 00 instructions, implying a deployment loss of 68,111,466,200 gas
In short, it is a proposal to reduce meaningless GAS consumption
3.3EIP-3860: Increase code limit for initialization
What is he?
At the time of contract deployment, there was an initialization code size, based on EIP170, which limited the initcode size to 24576, and now it doubles the maximum size limit of initcode to 49152 and applies 2 additional gas costs for every 32 bytes of initcode blocks
What’s the use?
Obviously, larger code capacity can allow the smart contract system to do more, the current code is only 24kb of scale, making it difficult to use a contract to implement the system, the original temporary solution is to deploy multiple contracts, and then call each other, but obviously cross-contract reference is a high gas cost thing.
In short, it is a proposal to increase the upper limit of the smart contract system and reduce gas consumption
3.4EIP-4895: Beacon Chain uses withdrawals as operational instructions
What is he?
It can be said that this is the core of this Shanghai upgrade. As a result, the staked ETH withdrawal operation is realized, and the implementation is implemented by introducing a system-level instruction withdrawal based on the information of the beacon chain (consensus layer) to directly control the ETH balance of the specified address unconditionally.
There are many ways to perform a withdrawal operation, but the characteristics of this withdrawal operation are as follows
- It is initiated by the system, rather than by a user, which is more concise and easy to review
- There is no gas fee consumption, and the system initiation is controlled by the consensus layer withdrawal limit, and there is no need to use gas for anti-DOS protection
- Directly update the balance of the execution layer, no EVM execution process, and adopt the simplest implementation strategy.
What’s the use?
Don’t forget, there are still 1400W ETH worth a total of $23.5 billion that are staked and “trapped” in the Ethereum beacon chain.
4 Where is the focus of Ethereum in the future?
The figure below is the latest roadmap released by Ethereum founder VitalikButerin recently, and the green part of the figure represents the progress of progress, and you can see that there are still a large number of goals around performance, security risks, privacy, and account system AA (based on 4337) that have found a path to achieve
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