- Ethereum Pectra allows wallets to use tokens other than ETH for gas, simplifying user interactions and enabling third-party fee payments.
- Validator staking limits have expanded from 32 ETH to 2,048 ETH, enabling higher efficiency and easier participation for institutional investors.
- The upgrade boosts transaction speeds and lowers fees, positioning Ethereum to better handle increased demand from apps and Layer 2 networks.
The Ethereum network has activated its latest upgrade, Pectra, on the mainnet at epoch 364032. This marks the third most significant upgrade since the 2022 Merge. Pectra introduces a series of technical advancements intended to improve staking operations, wallet flexibility, and network scalability. The update follows Ethereum’s Dencun upgrade and includes 11 Ethereum Improvement Proposals (EIPs), with EIP-7702, EIP-7251, and EIP-7691 driving major changes.
Smart Wallet Integration Now Enabled
EIP-7702 introduces smart account functionality, allowing Ethereum wallets to operate like smart contracts. Users can now authorize third-party applications to pay transaction fees using tokens other than ETH. This enhancement reduces the need for manual transaction approvals and broadens the usability of Ethereum-based applications, especially in decentralized finance ecosystems.
EIP-7251 raises the staking limit per validator from 32 ETH to 2,048 ETH. This change targets large-scale investors and staking service providers by enabling more efficient capital allocation and reducing the dependency on multiple validator nodes. In addition, the upgrade significantly shortens the staking exit time, decreasing it from several hours to approximately 13 minutes.
Faster Transactions and Better Network Throughput
EIP-7691 addresses scalability by optimizing data handling within the Ethereum network. This improves transaction throughput and lowers transaction costs. With this proposal active, Ethereum strengthens its capacity to compete with Layer 2 blockchain solutions by supporting higher application demands and increased user traffic.
Pectra also includes enhancements beyond the main EIPs. EIP-7002 and EIP-6110 streamline validator operations, while further refinements improve the security and efficiency of cryptographic processes. These developments aim to ensure Ethereum remains adaptable amid increasing pressure from rival blockchain platforms and rising Bitcoin market dominance.
