The second-largest blockchain has taken a step toward its historic conversion to a proof-of-stake network after successfully simulating staked ether withdrawals on an ETH test network (testnet), crypto media outlet CoinDesk reported on February 8.

The Zhejiang test network, or so-called testnet, which went live last week, enabled the withdrawal simulations early on Tuesday. The test network is intended to provide engineers a practice run for withdrawals similar to those that will take place on the primary Ethereum blockchain after its much-anticipated Shanghai upgrade, which is anticipated next month.

Since going through the Merge in September, which formally transitioned the blockchain to a proof-of-stake network, Shanghai will be Ethereum's first hard fork. Ethereum is now more energy-efficient than it was when it was using the proof-of-work algorithm that the Bitcoin blockchain uses. Cryptocurrency is "staked" or placed on the blockchain in a proof-of-stake network to assist safeguard transactions.

Notably, the upgrade has become a highly anticipated event for the ecosystem. The majority of the traders believe that Shanghai will encourage more staking

Source: COINDESK