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

For now, it remains unclear by when Ethereum developers would tackle these issues.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 14 April 2023 13:55 IST

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

Photo Credit: Twitter/ @NexonFi

The Shanghai upgrade on Ethereum was completed on April 13

Highlights

Ethereum developers have not spoken in detail about the issues
Ethereum users have been warned against scams
Phishing scams could pick pace around Ethereum for the time being

Justin Drake, a researcher part of the Ethereum Foundation has sounded an alert around some network inconsistencies that have emerged after the Ethereum blockchain complete its Shanghai upgrade. In an interview, Drake said that IP addresses of ETH stakers are being made visible post the network upgrade, raising privacy issues. The Shanghai upgrade will let people withdraw their staked Ether, bringing more liquidity to the network. Ethereum developers, after months of thorough testing, have deployed the upgrade, in the backdrop of which ETH has reached its nine-month high price point of $2,107 (roughly Rs. 1.71 lakh).

“There's a lot of metadata, you can look at deposit addresses, you can look at withdrawal addresses, you can look at fee recipients, you can look at IP addresses,” Drake said in the Bankless crypto podcast.

:rotating_light:Privacy issue on Ethereum staking.

-Researcher at #Ethereum foundation

Deposit addresses, withdraw addresses, fee recipients and IP addresses can be tracked.:eyes: pic.twitter.com/R1vD28Sh07
— Bitinning (@bitinning) April 14, 2023

For now, it remains unclear by when Ethereum developers would tackle these issues.

Meanwhile, the researcher has predicted that solo ETH stakers could soon get special airdrops, which would probably not be distributed to industry mammoths.

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“We know who Kraken is, we know who Coinbase is, and we can just not give them an airdrop if the purpose of the airdrop is to airdrop to specific individuals that are running solo validators,” CoinTelegraph quoted Drake as saying further in the podcast conversation.

The Ethereum blockchain went through its second major upgrade called Shanghai on April 13.

Ahead of the update, industry insiders had warned members of the Ethereum ecosystem against potential glitches and network issues that may follow the upgrade completion.

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Ilya Volkov, CEO of and Co-Founder of Web3 fintech firm YouHodler had told Gadgets 360 that the Shanghai Upgrade can expose users to a number of scams.

“People need to be alert so as to avoid falling prey to specifically phishing attacks involving fake wallet or staking services or in the form of false promises of guaranteed high returns on staked ETH,” Volkov had said at the time.

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Further reading: Cryptocurrency, Ethereum Foundation, Shanghai

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More