Ethereum continuously strives for more, be it speedier and cheaper transactions, decreased network congestion despite astronomical activity, or lower entry barriers for newcomers. The Dencun update launched in March of 2024 stands as proof of the developer team’s continuous efforts to support the second-best blockchain worldwide. A portmanteau of a combination between “Deneb” and “Cancun”, the latest upgrade concentrated on slashing layer-2 transaction fees considerably, succeeding in cutting them by over 90%. The improvement consisted of a series of nine EIPs, short for Ethereum improvement proposals. This monumental triumph opens up tremendous opportunities for the expanding ecosystem and amps up efforts to help newbies venture into blockchain more easily.
Long after Dencun deployed on Ethereum, all eyes are now on Pectra, a new upgrade appointed for the first months of 2025. Supposedly, less than a year before the project’s launch, the internet is buzzing with data analysis, speculations, expectations, discussions around the Ethereum price prediction, and any type of insight bringing clarity to the well-awaited milestone. What’s Ethereum cooking in the oven, and why is this event bound to be even more powerful than Dencun?
What makes this launch more than just an upgrade
Contextually, referring to Pectra as a singular upgrade is correct. Breaking the initiative down, you will find that this isn’t just an Ethereum modification but a chock-full of network improvements involving the core devs and the community alike. Besides the nine Standard EIPs that will go live, a new initiative will make this upgrade stand out, namely, a Meta EIP consisting of an extra eleven constituent proposals. Putting it in plain English isn’t just uncomplicated but also reveals the future of the internet, as Ethereum is often associated with. Let’s explore the most succinct lowdown:
- The EIP-3074 could launch and enact code changes that enhance the Ethereum wallet and enable a “one-step” transaction batching and signing operation. This would make crypto wallets function like smart contracts.
- The EIP-7251 will reduce the minimum limit to take on staking from 32 ETH to only 2,048 ETH, meaning that fewer resources will be necessary to stake and validate. This will decrease the rate at which starting validators enter the network.
- The PeerDAS, short for Peer Data Availability Sampling, could scale rollups. Simultaneously, the EVM Object Format (EOF) would enhance the developer experience and smart contract stability for the EVM on layers 1 and 2 alike.
- Rumors are that EIP-7702 could replace EIP-3074, a new-fangled transaction model put forward by co-founder Vitalik Buterin and developers. Moreover, a fixer for EIP-2935 could launch to help store historical block hashes.
- Devs also reflect on a few extra EIPs that would permit smart contract-based validator withdrawal, eliminate the deposit window, and more.
How exactly is the upgrade benefiting the community?
As stated above, those looking to break into staking to either contribute to the network’s security or generate some passive income are no longer forced into pouring a pricey amount of 32 ETH or jointly grossing this sum with others in staking pools. The inferior limit will be set to 2,048 ETH, equaling a little over $72K. Until now, with June included, staking providers have to spin up different validators, each staking over $240K worth of ETH. The growth in validator numbers can burden the communication layer of the Ethereum network.
The upcoming update aims to permit staking providers to fuse their stakes into smaller units by amassing the new and lower sum. The new EIP may decrease the number of messages circulating within the network, alleviating the validator’s networking layer. All being well, the improvement may improve the network’s performance and efficiency.
Simultaneously, EOF and other improvements to EVM are designed to revolutionize and improve the user experience, the developer experience, and the overall performance on the first two layers.
Devs are taking one thing at a time
Ethereum’s new roadmap tabled after the Merge launched and transitioned it from an energy-intensive proof-of-work model to a proof-of-stake consensus mechanism represents a five-step process to enhance the ulterior smart contract blockchain. The five steps undertaken are as follows:
- Merge
- Surge
- Verge
- Purge
- Splurge.
Ethereum devs agreed to take things slow and not hurry Pectra’s launch – not until Devcon goes live in November of this year, at least. This preliminary update will permit devs to track the upgrade better, thanks to the experience accumulated through the past upgrades. After Pectra, the well-awaited “Verkle trees” could follow, enhancing the data storage capacity of nodes through a new system deployment. Pectra will be a game-changer, but when zooming out on the whole puzzle of updates, it will represent a minor update compared to what will result when Buterin’s goals are met.
According to the Ethereum Foundation’s protocol support lead, Tim Beiko, the Verkle trees could need over a year to finalize, meaning that the upgrade could debut well after 2025’s inception.
The summary
According to Ethereum developers’ statements, the looming update marks the next network milestone after the Dencun update’s triumphant launch. This initiative will present a new element, namely the Ethereum Virtual Machine Object Format (EOF), consisting of eleven EIPs aimed at improving EVM code for Layers 1 and 2 alike. According to Ethereum representatives, the upgrade could roll out in the days leading to this year’s final or in the first quarter of the upcoming year.
This protocol change emphasizes a selection of improvements intended to reduce account abstraction and introduce a new transaction type. Users will no longer need to authenticate with a signature as they will begin logging in through the smart contract digital wallet associated with the account. Moreover, validators could stake up to 2,048 ETH instead of the inferior limit of 32 ETH, marking an astronomical evolution as operators could finally scale their management by monitoring lower numbers of validators.
Overall, the update outlines developers’ aspiration to gradually improve the network, preparing it for large-scale adoption. The focus lies on seizing little but numerous wins through the game-changing upgrades, positioning the Ethereum network for ongoing progress in the blockchain sector.