Ethereum's Pectra Upgrade Set for Q1 2025

Ethereum is currently in the spotlight – from the approval of spot ETH ETFs to volatile price movements, the second-largest cryptocurrency is now bracing for its next major milestone.

The Pectra Upgrade

Ethereum developers are getting ready for the highly anticipated “Pectra” upgrade, set to launch by the first quarter of 2025.

The significant update will be introducing the Ethereum Virtual Machine (EVM) Object Format (EOF), incorporating approximately 11 Ethereum Improvement Proposals (EIPs).

Recommended Read: Ethereum Improvement Proposal (EIP) Explained 
 

EOF’s aim is to enhance the EVM code through an opt-in container system, which marks a pivotal development in Ethereum’s evolution.

• What stands out about the upcoming upgrade is PeerDAS, a data availability sampling solution.
   
• PeerDAS leverages existing peer-to-peer components within ETH to ensure efficient data distribution and availability.
   
• This innovation aims to boost the network’s resilience and performance, and addresses current scalability issues. 

Developers will replace the account abstraction EIP-3074 with a more advanced proposal, EIP-7702.

Simply put, EIP-7702 allows Externally Owned Accounts (EOAs) to function as smart contract wallets during transactions – which, in turn, enhances both the user experience and security.
 

The proposal stated:

“This EIP is designed to be very forward-compatible with endgame account abstraction, without over-enshrining any fine-grained details or ERC-4337 or RIP-7560”.

Additionally, Pectra Upgrade has several main objectives – which are:

The name “Pectra” combines two simultaneous upgrades happening on the different layers of the blockchain. 

The execution layer – where protocol rules are usually enforced – will undergo the “Prague” upgrade, and the consensus layer – which ensures that blocks are validated – will go through the “Electra” upgrade. 

Pectra is the next Ethereum’s milestone, following the Dencun upgrade which was successfully deployed in March. 
 

Related: Decoding the Dencun Upgrade

What are the other EIPs included in the Pectra upgrade?

• EIP-7610: This proposal is designed to make the system more secure by only allowing addresses with storage space create smart contracts. 
  
   
• EIP-7523: This proposal focuses on making the Ethereum network more efficient, where empty accounts will be removed from the Ethereum state. Consequently, this helps reduce the state’s size, which makes the network easier to use and faster.
  
   
• EIP-7251 (Maxeb): This addition aims to make the network more scalable by simplifying the management of validators. 
  
   
• EIP-2537: This update brings new pre-built functions to the BLS12-381 curve, which make cryptography processes more efficient. 
  
   
• EIP-5920 (PAY opcode): Provides an easier way to share ETH by sending tokens directly without having to activate the receiver’s contract code.
  
   
• EIP-3074, 5806, and 7377

Each of these EIPs contribute to the bigger goal of making Ethereum more scalable, secure, and user-friendly.

While the Pectra Upgrade seems to be promising, its implementation also faces several challenges.

However, this upgrade is seen as an important step in Ethereum’s evolution, and is expected to have a significant positive impact on the overall Ethereum ecosystem.