Ethereum Pectra Upgrade

Overview

After the successful Dencun upgrade in March 2024, which drastically reduced transaction costs on Layer-2 networks, Ethereum is now preparing for the Pectra upgrade. Scheduled for the first quarter of 2025, Pectra will, among other things, improve Ethereum's scalability and efficiency. The upgrade combines improvements in both the Execution Layer and the Consensus Layer.

Key Developments

• Pectra Upgrade: Pectra combines two previously planned upgrades, Prague and Electra, which will both be implemented simultaneously on the Ethereum mainchain. Prague focuses on the Execution Layer (processing smart contracts and transactions), while Electra improves the Consensus Layer (validation and confirmation of blocks).
• Ethereum Improvement Proposals (EIPs): Pectra includes several key EIPs aimed at significantly improving both efficiency and user experience:
• EIP-7594 (PeerDAS): Validators can check data availability without having to download the entire transaction history. This will make Layer-2 networks faster and more cost-effective.
• EIP-7702 (New transaction type for EOAs - Externally Owned Accounts): Users can temporarily convert regular wallets into smart-contract wallets.
• EIP-7692 (Improvements to the Ethereum Virtual Machine): Comprehensive improvements to the Ethereum Virtual Machine (EVM) will make the development of decentralized applications more efficient and cost-effective.
• Changes in Ethereum Staking: The Consensus Layer will also be improved by Pectra:
• EIP-2537: More efficient mathematical calculations will make validators more powerful and reduce transaction costs.
• EIP-7251: The staking limit per validator will be raised from 32 ETH to 2048 ETH, which benefits large investors and reduces network load.
• EIP-7002: More flexible exit and partial withdrawal options for validators will improve the staking experience.