3min read
Published on: May 27, 2024
#Crypto 360
#Daily Brew
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.
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.
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:
Improve Scalability | One of the main focuses of the upcoming upgrade is increasing Ethereum's ability to process more transactions per second, which in turn reduces network congestion. |
Lowering Transaction Costs | By optimising the way transactions are being processed, the upgrade is set to reduce gas costs. |
Optimise Security | Pectra includes several security fixes to protect the network from attacks and their vulnerabilities. |
Improve User Experience | All these improvements aim to make the user experience more user-friendly and efficient. |
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
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.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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