#PectraUpgrade The Ethereum Pectra upgrade is scheduled for March and will introduce significant technical improvements to the network. This upgrade combines the Prague and Electra updates to optimize both the execution and consensus layers of Ethereum. In this article, you will learn about the technical advantages Pectra brings and why continuous improvements are essential for the Ethereum ecosystem to maintain its position in the competition for resources and talent against other Layer 1s.

Ethereum and Its Upgrades

Since its launch in 2015, Ethereum has undergone around 20 major upgrades. These upgrades implement the so-called Ethereum Improvement Proposals (EIPs). This ensures that the blockchain's weaknesses are continuously addressed. The upgrades enhance Ethereum's scalability, security, and efficiency, allowing the cryptocurrency to remain competitive. New and improved blockchains are constantly entering the market, competing not only for financial resources but also for developers. The term "Ethereum Killer" exists in the crypto space for a reason, highlighting that Ethereum's position is regularly challenged and under attack.

One of the most significant Ethereum upgrades and a major milestone was the Paris Upgrade in 2022, better known as “The Merge.” With this hard fork, Ethereum switched its consensus mechanism from Proof of Work to Proof of Stake - since then, investors have been able to stake their ETH and earn rewards.

Another important upgrade followed in 2024 with “Dencun.” Dencun led to a drastic reduction in fees on Layer-2 scaling solutions. This substantial improvement triggered a full-blown L2 boom, including Coinbase’s own blockchain, Base.