Explained: All you need to know about Ethereum’s latest Shapella upgrade

Last week, the developers of Ethereum announced that they have completed an upgrade called “Shapella”. Called the final milestone in Ethereum’s multi-year transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus, it will make earlier staked Ethereum more liquid.

What is “Shapella”?

The term “Shapella” is derived from the words “Shanghai” and “Capella”. These are two of five Ethereum Improvement Proposals (EIPs) that will be upgraded in the process. The upgrade will change the way Ethereum works. EIP-2565, EIP-2929, and EIP-2718 are the other protocols which will be upgraded.