Ethereum Foundation Researcher Alerts of Network Instability, Privacy Issues Post Shanghai Upgrade: Details

By Tech PiWay On Apr 22, 2023

The Ethereum Foundation, the developer of the decentralized blockchain-based platform Ethereum, has recently alerted the network of potential instability and privacy issues following the Shanghai upgrade, highlighting the importance of staying vigilant and proactive when using the platform. With the changes implemented during the upgrade, the Ethereum Foundation has identified potential stability and privacy issues that users must be aware of to avoid any potential security problems. Let’s explore what the upgrade entails, as well as the potential risks associated with the changes.

1. Shanghai Upgrade Causes Network Instability in Ethereum

Ethereum’s latest hard fork, Barcelona, was designed to improve the protocol and make it viable for larger data and business use-cases. This, however, has negatively impacted the network’s stability.

The consensus model was upgraded from two commands, the Ethash-Proof-of-Work (PoW) and the Clique-Proof-of-Authority (PoA), to three, add in the AuRa-Proof-of-Stake (PoS). The infrastructure also changed from Byzantium to Berlin and Istanbul, which included more active nodes, more demand for bandwidth, and a higher rate of machine communication.

This increase in communication, along with other major upgrades, has caused the network to become unstable.
It is estimated that the rate of syncing nodes become the main bottleneck once the new software was implemented.
Transactions became backlogged and users have even reported that their transactions have been cancelled.
The Ethereum team is working hard to fix this issue to increase the scalability of the network

2. Privacy Issues Identified After Network Upgrade

After an upgrade to the company’s network systems, a careful review of the new privacy policies and processes is needed. The following issues should be considered when assessing the privacy risks associated with the network upgrade:

Integrity of customer data – It is essential that customer data is securely stored and protected. The integrity of customer data should be regularly monitored to ensure it has been transferred correctly and securely.
Data security – All customer data should be stored on secure servers, and encryption should be used to protect customer information. Access should be restricted to authorized individuals only to ensure that customer data is not compromised.
Deletion of data – The company needs to develop procedures to ensure that customer data is deleted once it is no longer needed. Data should also be deleted in a secure manner to prevent any unauthorized access.
Data access – Policies and procedures should be in place to ensure that only authorized personnel can access customer data. Access should also be monitored to ensure that customer data is not being misused or changed without authorization.

These are just some of the privacy issues that need to be addressed when evaluating the impact of the network upgrade. Evaluating the policies and processes for the protection of customer data and ensuring that all security measures are in place is essential in providing a secure and reliable network system.

3. A Closer Look at the Shanghai Upgrade

Shanghai’s citywide upgrade has been making remarkable progress since its unveiling in 2016. These efforts have spanned across many sectors of the city, including transportation, housing, and public services. In this section, we’ll take a closer look at some of Shanghai’s largest and most impactful infrastructure initiatives.

When it comes to transportation, the most notable progress has been in the expansion of its metro network. To date, the Shanghai Metro now covers over 600 kilometers, with 842 stations across 15 metro lines. Furthermore, the Shanghai Maglev Train is the world’s fastest commercial train, traveling up to 431 kilometers per hour. In addition, the city has invested heavily in the renovation of its roads and bridges, creating wider lanes and more efficient traffic flow.

Transportation: expansion of metro network, speed of maglev train, renovation of roads and bridges.
Housing: subsidized housing programs, development of communal living spaces.
Public Services: improvement of medical and educational programs, better accessibility to recreational and cultural sites.

4. Ethereum Foundation Researcher Offers Solutions to Address Instability

An Ethereum Foundation researcher, Justin Drake, has outlined a series of solutions to address the instability facing the platform. According to Drake, these solutions range from minor code fixes to drastic changes in the fundamental architecture of Ethereum.

Drake’s Suggested Solutions:

Improving the deployment of Ethereum 2.0 phases, including sharding and Casper;
Re-engineering the Ethereum Virtual Machine to add native support for lightweight smart contracts, increasing scalability and flexibility;
Introducing new transaction costs, such as modified gas prices, to prioritize high-value transactions;
Exploring alternative consensus algorithms to replace Proof of Work and reduce energy consumption.

Drake believes that these solutions, if implemented correctly, can address the instability of Ethereum and make it a safer and more efficient platform. He also stresses that while there are exciting opportunities with the Ethereum blockchain, the platform must remain resilient to ensure longevity, security, and growth.

The Shanghai upgrade, while viewed as necessary to prevent additional network congestion, has raised both questions of data privacy and technical instability. The Ethereum Foundation is now working to resolve these issues to ensure that Ethereum stays on track and remains the leading blockchain network in the industry.