Overview of Pectra Upgrade
• Ethereum's Pectra upgrade, activated on May 7 at epoch 364032, is its most significant since the Merge and Dencun.
• It introduces major Ethereum Improvement Proposals (EIPs) to enhance staking, wallet usability, and scalability.
Key Features and Technical Enhancements
Staking Improvements
• EIP-7251: Raises max staking limit from 32 $ETH to 2,048 $ETH , reducing validator overhead.
• Enables smart contract automation for staking operations, supporting institutional and programmable staking.
Smart Account Functionality
• EIP-7702: Introduces account abstraction with features like:
o Paying gas fees in non-ETH tokens.
o Batch transactions.
o Alternative authentication methods (e.g., passkeys).
Execution Layer Enhancements
• EIP-7002: Allows $ETH withdrawals from the execution layer, increasing staking flexibility and liquidity.
• EIP-6110: Moves validator deposits to the execution layer, cutting activation times to under 15 minutes.
Scalability and Data Efficiency
Layer 2 Support
• EIP-7691: Increases block data blobs, improving throughput and lowering costs for rollups.
• Sets foundation for proto-danksharding and Verkle trees.
Oracle and Cross-Layer Communication
• EIP-2935: Enables access to recent block hashes on-chain, aiding trustless oracles.
Other Notable EIPs
• EIP-7623, EIP-7685, EIP-7549, EIP-7840: Focus on fee stability and data efficiency.
• EIP-2537: Lowers gas costs for cryptographic operations.
Deployment and Future Outlook
• Smooth mainnet deployment followed testing on the Hoodi testnet.
• Fusaka, the second phase of the upgrade, is planned for late 2025 with features like PeerDAS for enhanced scalability.
Market Reaction
• Ethereum’s price remained relatively stable, trading around $1,800, with a 3% increase post-upgrade.