Ethereum Pectra Update: Comprehensive Blockchain Upgrade Guide
1970-01-01
Bittime - Ethereum does not want to be left behind in blockchain development. In an effort to continue improving its services, Ethereum is preparing to launch a major upgrade called Pectra.
What exactly is this Ethereum Pectra Update and how will it impact users? Let's explore together. Keep reading this article!
What is the Ethereum Pectra Update?
Imagine a highway that is widened, equipped with new signs, and given smoother asphalt. That's a simple description of Ethereum Pectra.
This upgrade is a combination of two previous upgrades, Prague and Electra, which are scheduled for release between late 2024 and early 2025.
Pectra is not just a cool name. It brings a number of significant improvements, ranging from increased network efficiency, stronger security, to better scalability.
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One of the main focuses is to make it easier to use crypto wallets. So, managing digital assets can be as easy as checking social media.
What is EIP-3074 and How Does It Work?
EIP-3074 is one of the superior features in Pectra. Imagine being able to use a crypto wallet without having to worry about losing all your assets if you forget your password. Cool, right?
EIP-3074 introduces two new instructions, AUTH and AUTHCALL. These instructions allow the smart contract to act on behalf of the user more efficiently.
For example, when you want to buy an NFT, you no longer need to sign two separate transactions. Just one digital signature, and all processes run automatically.
What are the Benefits of EIP-3074?
- Social Recovery Mechanism: Losing a private key no longer means losing all assets. With the help of trusted people, you can restore access to your wallet.
- Better Transaction Process: Batch transactions allow you to perform multiple transactions at once, saving time and gas fees.
- Enhanced User Experience: Automated DeFi strategies can be executed without the need to constantly monitor the market.
- Sponsored Transactions: Third parties can pay gas fees for your transactions, making interacting with dApps easier for beginners.
What is EIP-7702 and How Does It Work?
EIP-7702 is a more advanced version of EIP-3074. Proposed by Vitalik Buterin himself, this proposal allows externally owned accounts (EOAs) to operate like smart contract wallets during transactions.
The main difference with EIP-3074 is that EIP-7702 is more compatible with account abstraction (ERC-4337) and introduces a new transaction type called user_operation.
EIP-3074 Security Risk
Although it brings many benefits, EIP-3074 also has potential risks. Insecure invoker contracts can be misused by malicious parties to steal funds or conduct unauthorized transactions.
To overcome this, project developers need to implement security measures such as whitelisting and regular audits. User education is also important so they can recognize suspicious signs and protect their assets.
Read also: Layer 2 Ethereum Widely Used, Good News For ETH Holders
What is EIP-7251 and How Does It Work?
EIP-7251 is a proposal that aims to address the problem of growing number of validators on the Ethereum network. This proposal increases the maximum effective balance of validators from 32 ETH to 2048 ETH.
EIP-7251 works in two ways:
Voluntary Outflow: Validators can leave the system after going through a certain process.
Validator Consolidation Flow: Allows combining validators for efficiency.
EIP-7251 Features
Overcoming Consensus Layer Challenges: Helps reduce the withdrawal burden from the ever-increasing number of validators.
Reduction of Overhead Costs: Reducing the number of validators means reducing operational costs.
Benefits Solo Stakers: Allows retail stakers to benefit from compounding rewards with less ETH.
Other Proposed Major EIPs
Apart from the three EIPs above, there are more than 25 other EIPs proposed for the Pectra upgrade. Some notable ones include EIP-2537 for BLS12-381 curve operations, EIP-2935 for stateless execution, and EIP-6110 for validator deposits in the execution layer.
Conclusion
The Pectra upgrade is Ethereum's ambitious step towards a more efficient and user-friendly blockchain future. With various technical improvements and user experience enhancements, Pectra has the potential to bring a revolution in the way we interact with blockchain technology.
However, as with every major change, Pectra also brings its own challenges and risks. Increased staking limits for validators and the introduction of social recovery tools have raised concerns among some users.
What is clear is that Pectra marks a new chapter in Ethereum's evolution. For blockchain developers, investors, and users, it is important to stay abreast of these developments and understand their implications.
With good understanding, we can exploit the full potential of this ever-evolving blockchain technology.
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Learn How to Buy Crypto on Bittime.
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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.
