Pectra, the next major upgrade for Ethereum, is set to take the platform to the next level of innovation. The update is scheduled to roll over by the end of Q4 of 2024 or the beginning of Q1 of 2025.
Pectra is the fourth major update of the Ethereum blockchain after The Merge, Shapella, and Dencun updates.
What Is Pectra?
Pectra is a combination of two major updates: Prague and Electra. Prague is an update of the execution layer, whereas Electra is an upgrade to the consensus layer.
It is a massive upgrade with the upgradation of nine standard Ethereum Improvement Proposals (EIPs) one Meta EIP composed of another 11 constituent EIPs that are currently slated for inclusion.
The EIPs that will be updated with the implementation of the Pectra upgrade are listed below.
- EIP – 2537: Include the routines for compiling BLS12-381 curve operations, including BLS signature verifications.
- EIP – 2935: Preserve historical block hashes in its native state
- EIP – 6110: Supply validator deposits on chain
- EIP – 7002: Execution layer triggerable exits
- EIP – 7251: Increase the MAX_EFFECTIVE_BALANCE
- EIP – 7549: Put the committee index outside of the attestation’s purview
- EIP – 7594: Peer DAS – Make available data for peer analysis and sampling
- EIP – 7685: Make general requests on the execution layer
- EIP – 7702: Account abstraction
EIP-7692 is a meta update that constitutes 11 EVM Object Format (EOF) EIPs. The most important constituents of this meta EIP are given below.
- EIP – 3670 EOF – Code Validation
- EIP – 4200 EOF – Three static relative jumps namely RJUMP, RJUMPI and RJUMPV
- EIP – 4750 EOF – Functions
- EIP – 5450 EOF – Stack Validation
- EIP – 7069 EOF – Revamped CALL instructions
- EIP – 7480 EOF – Instructions for data section access
- EIP – 7620 EOF – Contract Creation
- EIP – 7698 EOF – Creation transaction
Major EIPs in Detail
EIP-7702 is aimed at account abstraction. That means the addresses of the accounts included in the transaction will serve as the smart contracts for the same.
EIP – 7702 is a replacement for EIP – 3074. This update is intended to enhance the functionality of the Ethereum platform by allowing users to manage smart contracts easily using their accounts.
It will improve the ease of interaction between several decentralized applications (dApps). Users can make all transactions without having to interact with multiple contract layers.
Peer Data Availability Sampling (PeerDAS), introduced by EIP – 7594, is an update that ensures roll-up scalability. This EIP improves the scalability of the Ethereum blockchain network by optimizing layer 2 chains such as Base and Arbitrum.
The update will also improve the ease of transaction between Ethereum and its layer 2 chains with the increasing transaction volumes. PeerDAS reduces the usage of resources, thus making the whole process more cost-efficient and time-efficient.
The EIP-7251 is yet another significant change brought in by the Pectra upgrade. This update proposes to increase the maximum effective balance of staking from the current 32 ETH to 2048 ETH.
This increase in stake limits will allow validators to consolidate their assets into large-sized validators, but fewer in number. Fewer large-sized validators will ease computational difficulties and reduce latency to improve the overall efficiency of the network.
Key Risks Associated with Pectra Upgrade
While the Pectra is a sought-after upgrade to the Ethereum platform, it is not without risks.
The client and operator risks of the update can include substantial penalties and the resultant instability of the network if a single bug attacks a significantly large validator.
Large node operators, if not careful, may cause instability to the whole network due to the security issues affecting them.
A lack of diversity in the geographical distribution of the operators can pose a risk to the network. Diversity is important to prevent single points of failure and the node operators should ensure it through correlation and other risk mitigation activities.
The Bottom Line
Pectra is indeed a significant update to the Ethereum blockchain network. It attempts to improve the scalability and security of the network and enhances the integration of Ethereum’s different layer 2 chains; all these benefits come at a reduced cost.
The network will now be able to handle large transaction volumes at a much higher speed. This upgrade also provides advanced support to the developers, thus fostering the whole blockchain ecosystem.
