The Shapella Upgrade: How Ethereum is Evolving

By Tokenize Xchange
April 20, 2023

As one of the most widely-used blockchain platforms, Ethereum has enabled developers and businesses to create decentralized applications (dApps) and execute smart contracts with ease. However, as the Ethereum network continues to grow, it faces challenges in scalability and security. This is where the Shapella upgrade comes in.

shapella upgrade

Today Tokenize Xchange will explain what the Shapella (Shanghai – Capella) Upgrade is, and how it benefits the Ethereum network. 

What is the Shapella Upgrade?

Shapella upgrade (Shanghai – Capella upgrade) occurred shortly before 6:30 a.m SGT on 13th April 2023, marking the first big change since The Merge in 2022.

“Shapella” refers to Ethereum’s upcoming hard fork, in this case, a key upgrade to the blockchain. The Shapella upgrade merges modifications made to two key components of Ethereum – the Shanghai Ethereum Virtual Machine and the Capella consensus layer – and involves changes to the Engine API that connects the two layers. Following the successful transitions of the Sepolia and Goerli test networks, client teams have planned to activate the Shapella upgrade on the Ethereum mainnet. 

The Shapella upgrade is a significant improvement to the Ethereum network that seeks to address some of its most pressing challenges. The upgrade includes changes to the Ethereum Virtual Machine (EVM), which is responsible for executing smart contracts on the network. The upgrade also includes changes to Ethereum’s gas fee structure, which determines the cost of executing transactions on the network.

This event is crucial for Ethereum because of the possible impact on the ecosystem, including the unlocking of previously unavailable funds. With withdrawals allowed, the Ethereum network has completed its transition to proof-of-stake consensus.

How Shapella upgrade benefit users

The upgrade will bring users great benefits, including increased scalability, improved security, and reduced transaction fees. 


One of the most significant benefits is increased scalability. With the upgrade, Ethereum can handle more transactions per second, which is crucial for supporting the growing number of dApps and users on the network. 


The upgrade also improves Ethereum’s security by implementing changes to the EVM that reduce the risk of smart contract vulnerabilities.

Lower gas fee 

One of the biggest challenges facing the Ethereum network is high gas fees. Gas fees are the fees users pay to execute transactions on the network. The Shapella upgrade aims to reduce gas fees by implementing changes to Ethereum’s gas fee structure. This will make transactions more affordable for users and reduce the barrier to entry for new users and dApps.

Improve developers’ experience 

The Shapella version improves the Engine API, making it easier for developers to write and deploy smart contracts on the Ethereum network.

What’s Next for Ethereum?

The Shapella upgrade is just one of many upgrades and improvements planned for Ethereum. The Ethereum community is constantly working to improve the network and address its challenges. Some of the other upgrades in the pipeline include Ethereum 2.0, which will bring even more scalability and security improvements to the network.

As Ethereum continues to evolve, it will remain a critical player in the blockchain industry. Its ability to support dApps and execute smart contracts has made it a favorite among developers and businesses alike. With the Shapella upgrade and other planned improvements, Ethereum is poised to become even more powerful and versatile.

Another key area of development for Ethereum is its interoperability with other blockchains. Ethereum has long been a leader in the development of decentralized finance (DeFi) applications, but there are now many other blockchains and protocols that are also supporting DeFi. To remain competitive, Ethereum needs to be able to work seamlessly with these other platforms.

One solution to this challenge is the development of cross-chain bridges that allow assets to move between different blockchains. The Ethereum community is actively working on several cross-chain solutions, including the Interledger Protocol and the Polkadot network. These solutions will enable Ethereum to work with other blockchains and tap into new markets and use cases.

Bottom Line

Overall, Ethereum’s future looks bright. Its versatility, scalability, and developer-friendly environment make it a top choice for building decentralized applications. With the Shapella upgrade and other improvements in the pipeline, Ethereum is well-positioned to remain a leader in the blockchain industry for years to come.


Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.