Pectra upgrade: A new dawn for Ethereum's evolution?

Ethereum (ETH) is a decentralised and open-source blockchain platform that uses smart contracts. It allows users to build and deploy apps easily with commands, and it's about to get even better with the Pectra upgrade. 

The Pectra upgrade is said to make ETH work faster, smoother, and safer. Learn more about the Ethereum upgrade here:

Key takeaways

• The Ethereum Pectra upgrade is a major milestone in the network's evolution, combining two separate upgrades - Prague and Electra. 
• The upgrade is scheduled for 2024 or early 2025 and aims to introduce various improvements to ETH functionality and performance.

What is the ETH Pectra upgrade?

ETH’s Pectra upgrade signifies an important step in the platform's progress, integrating two distinct upgrades: Prague for the execution layer and Electra for the consensus layer. It will launch in the late quarter of 2024 or the first quarter of 2025.

Pectra aims to enhance ETH by implementing a range of significant changes, increasing the flexibility and optimisation of the platform. This update expands upon the prior success of the Ethereum Duncan upgrade that introduced proto-dank sharding (EIP-4844).

EIP-4844 is a way for rollups to add cheaper data to blocks, allowing the ETH network to process data more efficiently. ETH Pectra upgrade aims to improve this revamp, boosting ETH's smart contract transaction processing and greatly enhancing the network's wallet usage features.

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Pectra key EIPS

Ethereum improvement proposals (EIPs) allow the ETH community to propose changes or improvements to the ETH blockchain. They cover everything including technical upgrades, new features, and changes in ETH’s protocol or governance.

Some important EIPs that come with the Pectra upgrade include:

• EIP-3074 → This upgrade includes innovative features that allow regular crypto wallets to operate similarly to smart contracts. Some of its key components include:

Social recovery → You no longer need seed phrases to access your virtual assets, improving both the security and usability of the ETH network.

Grouped transactions → Sign various tasks at the same time within a transaction, requiring only one approval. This simplifies and speeds up the interaction process.

• EIP-7702 → This allows the execution of any smart contract code by current externally owned accounts (EOAs), which has the power to create wallets that are both feature-rich and user-friendly. This has the potential to speed up the creation of complex apps. Some of its key features are:

Temporary smart contract conversion → Access additional features without permanently changing the nature of your EOAs. This is done by temporarily converting them into smart contract wallets during transaction execution.

Wallet benefits → This EIP details methods for managing wallet rights including allowing you to issue limited permissions to certain subkeys. It improves security by allowing you to manage access to certain assets or features within your wallet. 

• EIP-7251 → This streamlines validator management and increases the scalability of the ETH network. It allows validators to have a maximum network balance of 2,048 ETH instead of the previous 32 ETH. Some of its impressive features are:

Lower operating costs → Big node operators can now benefit from the EIP's capacity to reduce operational costs and maximise rewards. This is done by reducing the need for many validators.

Enhanced economic security → EIP-7251 lowers instability caused by a widely distributed validator pool by increasing the maximum effective balance. This in turn enhances the network's economic security. 

Pectra: Feature upgrades and benefits you can expect 

Ethereum Pralectra upgrade is set to transform the ETH network with different major improvements that you take advantage of. These include: 

• EVM improvements → The Ethereum Virtual Machine (EVM) is the part of ETH that handles smart contracts and decentralised applications (dApps). Improvements to the EVM focus on enhanced performance and execution efficiency.
• Improved staking limits → This allows staking providers to combine their stake by increasing the maximum effective balance to 2,048 ETH, allowing them to choose fewer validators. This decreases the quantity of messages that must be transmitted across the network, improving the network's efficiency.
• Improved user experience → Aside from tech improvements, EIPs also focus on making ETH easier to use. This involves better interfaces for interacting with dApps and streamlined wallet experiences, onboarding new users and retaining existing ones. 
• Sponsored transactions → Sponsored transactions allow third parties to pay for your transaction fees. This makes it easier to interact with the network without worrying about gas fees.

Why are ETH upgrades like Pectra important?

ETH upgrades like the Prague Electra Ethereum upgrade are important because they address critical aspects of the ETH network such as: 

• Improving scalability → As ETH becomes more popular, the number of transactions and dApps running on the network increases. Without improvements in scalability, the network becomes congested, leading to slower transactions and higher fees. 
  Upgrades like Pectra aim to increase the network's capacity. This allows it to handle more transactions at the same time, which is essential for ETH's long-term growth.
• Boosting security → Security is crucial for any blockchain network. With more users and assets on the network, the risk of attacks also increases. The Pectra upgrade includes enhancements that boost the network's defences against potential threats, ensuring the safety of your funds and data. 
• Enhancing user experience → For ETH to continue attracting users and developers, the experience of interacting with the network needs to be smooth and intuitive. Upgrades like Pectra often include features that reduce transaction costs, speed up transaction times, and simplify interactions with smart contracts, making ETH more accessible.
• Fostering innovation → ETH is known for its ability to support a wide range of dApps and decentralised finance (DeFi) projects. By continually upgrading the network, ETH provides developers with new tools and features to create innovative solutions. 

The Ethereum Pectra Upgrade marks a new chapter in ETH's journey. By making the network safer and easier to use, Pectra sets the stage for a brighter future. These improvements help ensure that ETH remains a robust and versatile platform for the future.

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