Pectra Upgrade – What is Pectra Upgrade? What will the upgrade improve next on the Ethereum chain?
Let's find out through the article below!
What is Pectra Upgrade?
Ethereum 's Pectra upgrade is the next major upgrade expected to launch around late 2024 or Q1 2025 , combining two smaller upgrades , Prague ( for the execution layer ) and Electra ( for the consensus layer ) .
Pectra aims to improve the performance , security , and scalability of the Ethereum network .
Currently, the Ethereum community and developers are discussing and proposing Ethereum Improvement Proposals (EIPs) that will be included in Pectra. To date, six EIPs have been agreed upon for Pectra Devnet 0, which is scheduled to launch in late May 2024. The six EIPs include: EIP-6110, EIP-7002, EIP-7549, EIP-2537, EIP-3074, and EIP-7251 .
Outstanding EIP Improvement Proposals?
- EIP-7002: Allows validators to enable exits and partial withdrawals via withdrawal credentials at their execution layer, providing more flexible options for stakers.
- EIP-7251: Increases the maximum amount of Ethereum a validator can hold, reducing the number of validators needed, making the network more efficient.
- EIP-7549: Optimizes the processing and aggregation of validator consensus votes, improving the efficiency of Beacon Chain.
- EIP-7702: Proposed to replace EIP-3074, to provide Smart Account functionality for external Ethereum accounts (EOA).
- EIP-3074, 5806, and 7377: Relate to Account Abstraction, which aims to facilitate automated verification and execution of transaction contracts. This simplifies the process of executing complex transactions and reduces transaction costs.
Most important improvement proposal (EIP)?
After switching to a Proof-of- Stake (PoS) consensus mechanism, Ethereum still maintains its vision of decentralization. Validators on this network only require relatively low hardware and bandwidth compared to other networks in the same segment. In addition, each validator needs to have a fixed collateral of 32 ETH.
EIP-3074 is a proposal to improve the way Ethereum works, specifically focusing on improving user experience (UX) and optimizing transaction costs. Allows multiple transactions to be bundled into a single signature from a user's wallet, minimizing the number of times a user has to interact with their wallet.
EIP-7251 is a major change that increases the maximum Ethereum limit that “a validator can hold from 32 ETH to 2,048 ETH”. This reduces the number of validators required, thereby increasing the efficiency of the network by reducing the workload on nodes and improving the governance of validators.
=> EIP-7251 is especially beneficial for Liquid Staking & reStaking products on ETH
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Summary
Allinstation has explained to you the definition of the Pectra upgrade table - Pectra Upgrade and the impact of the upgrade on the ETH network.
In the next part, we will review the impacts of the previous ETH upgrade on Altcoins.
Let's learn and evaluate together to make the wisest investment decisions. Good luck to you!!!
