Ethereum is gearing up for a major update called Pectra, which is already being discussed in the crypto community. But what is special about it and why should this update worry Ethereum developers and users? Let’s break it down.
What Pectra is and when it will be released
Pectra or Prague-Electra is the next major update to the Ethereum network. It aims to:
- improving scalability,
- improved security,
- and a better user experience.
Pectra is scheduled to launch on the main network on May 7, 2025. The update has now been tested on two testnets, Sepolia and Holesky.
The main thing: what improvements Pectra will bring
1. Abstraction of accounts (EIP-7702)
Traditional accounts (externally owned accounts, EOA) will be able to behave like smart accounts. For example, pay transaction fees not only in ETH, but also in other tokens; use multi-signatures, social recovery wallets, etc. This makes the use of private key-based wallets more convenient and greatly expands their functionality.
2. New rules for validators (EIP-7251)
The maximum limit of staking will rise from 32 ETH to 2048 ETH. This will make life easier for large validators, but may also increase the risks of centralization.
3. Faster and cheaper (EIPs 7691 and 7623)
Updates to improve performance and Layer-2 solutions. Looking ahead, faster transaction confirmation and lower fees.
4. Improvements for developers (EIP-7549)
Simplifies the deployment of smart contracts, and optimizes validator voting – this will improve the stability of the entire network.
5. Features “for the future”
Include PeerDAS, Verkle-trees for sustainable scalability, and automatic reinvestment of staking awards – all of which make validators more efficient and profitable in the long run.
Why the Pectra update is especially important for user experience
One of the most significant updates is EIP-7702, which paves the way for the full realization of the concept of account abstraction. Ethereum has long sought to make EOA wallets “smarter” by endowing them with smart account functionality.
Now this will become a reality. The EIP-7702 gives developers the ability to add features to wallets such as:
- payment of transaction fees in stablecoins instead of ETH,
- ability to regain access to the wallet,
- multi-signatures and other customized scenarios.
You can read more about the EIP-7702 in this article
What this means for users and developers
With the Pectra update, Ethereum promises lower fees, faster transactions, and easy access to decentralized applications (dApps). This will make it easier to interact with deFi platforms, NFTs and blockchain games – for both experienced and new users.
Developers will find it easier too. Increased scalability and lower transaction costs make it cheaper and faster to build dApps. And a simplified smart contract deployment process lowers the threshold for entry into the ecosystem and accelerates the launch of new ideas.
Possible challenges
Despite all the pros, the Pectra upgrade has potential risks. Some of them are:
First, the increased staking limit (EIP-7251) may cause centralization – this goes against the decentralized nature of Ethereum. Second, the expanded account abstraction (EIP-7702) may not be immediately clear to developers, it’s unclear how long it will take to implement the standard. And, of course, as with any large-scale upgrade, there are technical risks – bugs, vulnerabilities, unforeseen problems. That’s why all innovations are thoroughly tested on testnet, but you should still be especially careful in the first days after launch.
The Pectra update is an important step in the evolution of Ethereum. The network will get closer to the masses and developers will have more tools to create modern Web3 products.
Source: https://coinpaper.com/8464/ethereum-is-gearing-up-for-a-major-pectra-update