Ethereum core developers have confirmed that the long-awaited Pectra upgrade will go live on the mainnet on May 7. Initially scheduled for March, the first significant upgrade since Dencun was delayed due to several challenges encountered on the Holesky testnet. It took weeks to recover Holesky, which eventually came back online but suffered from residual damage. Ethereum runs testnets so that developers can run code changes before bringing them to the main network. The system upgrade delay reflects a cautious approach to ensure a smooth and stable transition.
To improve its functionality, Ethereum regularly undergoes upgrades referred to as hard forks that require network participants to adopt a new version of the blockchain with updated rules. The impact of Pectra on Ethereum‘s price is indeterminate and depends on how well it delivers its promises and how the market judges its success. The upgrade is expected to bring a handful of changes for Ethereum, and industry leaders argue it could renew energy within the ecosystem, which has faced mounting pressure lately.
The Pectra Upgrade Combines Two Separate Upgrades: Prague And Electra
The Pectra upgrade is a combination of Prague (execution layer changes) and Electra (consensus layer changes). They were initially scheduled to roll out independently, yet were later merged into a single upgrade for better efficiency and synergy. The Pectra upgrade comprises a series of improvements meant to make Ethereum more user-friendly and efficacious. Since its inception, Ethereum has been on a relentless journey of evolution, aspiring to become the world’s computer. As Ethereum continues to mature, it will provide new opportunities for businesses, developers, and users.
It Will Introduce A Series Of Ethereum Improvement Proposals (EIPs)
It’s poised to introduce 20 Ethereum Improvement Proposals (EIPs) addressing specific features and functionalities, such as:
- EIP-6110: It rectifies the Beacon Chain’s validator deposit request mechanism, shifting processing from Ethereum’s consensus layer to the execution layer. It removes the need for a peer-to-peer (P2P) polling process. EIP-6110 increases the speed of activation for newly deposited validators by 48 hours.
- EIP-7691: The central function of EIP-7691 is to enhance Ethereum’s L2 scalability by modifying the number of blobs per block from 3 to 4 while maintaining the maximum count at 6. Gas fees become more manageable. Since more transactions can be processed in one block, gas costs should stabilize or even decrease.
- EIP-7002: It reduces assumptions in delegated staking by allowing withdrawal credentials to retain control of staked Ethereum. Reducing the risk for users who elect delegates to validate the next block is essential. EIP-7002 introduces a mechanism that makes it possible for validators to manually initiate execution layer withdrawals and exits using their credentials.
This list isn’t intended to be exhaustive. For more information, please visit the official EIP repository on GitHub and read the detailed specifications for each proposal.
The Pectra Upgrade Will Have A Significant Impact On Ethereum
The scheduling of Pectra for May 7 was determined by Ethereum’s core developers in a conference call held one week after the upgrade’s activation on the Hoodi testnet. To help you see the bigger picture, we’ve summarized the implications for the Ethereum network:
User Experience
Externally Owned Accounts (EOAs) will execute code automatically, which will allow them to have smart contract functionalities. Full account abstraction is still a future vision, yet the upcoming hard fork will mark a step forward by introducing EIP-7702. Ethereum will become more accessible and intuitive. Suppose you wish to trade ETH for another cryptocurrency on a decentralized exchange (DEX). In that case, your EOA will communicate with the DEX to facilitate the transaction.
Smart contract wallets could replace traditional ones like MetaMask. Users benefit from the “server-side” without sacrificing decentralization, setting requirements for multiple authentication factors before approving any transactions. The vast majority of crypto wallets available are client-side wallets only, so as far as security and user experience are concerned, they have limited capabilities. If smart contract wallets become mainstream, users will be able to pay fees with any token, batch transactions, and have access to customizable security options.
Developer Experience
Pectra advances efficient cryptographic precompiles and extended blob capabilities, so developers can build cost-effective and groundbreaking decentralized applications (dApps). By way of illustration, the EVM Object Format (EOF) enhancements in EIP-7692 enable developers to structure their code in a more efficient manner, which leads to faster and more cost-effective contract execution. If EOS becomes an obstacle, it will be separated into different forks so that Pectra can continue without considerable delays. At any rate, EOF won’t be part of the initial version of decent 1.
Scalability
Pectra aims to enhance scalability by optimizing Ethereum’s infrastructure and improving transaction efficiency. Verkle trees, which require less than 150 bytes to produce a proof for a tree with a billion data points, will be implemented more easily.
Verkle trees maximize information storage and verification, reducing the amount of data that validators must keep while allowing fast and secure access to network information. Pectra will also introduce Peer Data Availability Sampling, which allows nodes to sample data from their peers. It serves as an immediate scaling solution for Ethereum until a scalable distributed hash table (DHT) is available.
Network Security
Pectra seeks to improve Ethereum’s defenses by eliminating potential attack vectors through enhanced verification and validation processes. For example, precompiled contracts for BLS12-381 curve operations refine the efficiency and security of zero-knowledge proofs. This is vital for security-focused applications like rollups, which reduce the effects of network congestion. The risk of a distributed denial-of-service (DDoS) attack is present due to variable input/output sizes; structured gas calculations can provide a defense.
Pectra includes numerous EIPs that indirectly contribute to the overall security and stability of the Ethereum network. EIP-7549, for instance, focuses on gas efficiency, scalability, and cryptographic verification. By simplifying the structure of attestations and optimizing their aggregation, EIP-7549 improves network resilience to finality failures. The enhanced capabilities of Ethereum are expected to drive innovation and growth within the ecosystem. The current sentiment is positive, with many analysts and investors expressing optimism.
