Ethereum $ETH is about to have a major turning point with the Pectra upgrade, expected to be implemented in early 2025. To understand better, imagine Pectra as upgrading a super highway - enabling vehicles to travel faster, save fuel, and prepare for future vehicles. Here are the highlights and how they may affect you.
1. “Account Abstraction” - Turning regular accounts into “smart accounts” (EIP-7702)
In simple terms:
• Currently, there are two types of accounts on Ethereum:
• User accounts (EOA): Like a regular wallet, you need to sign transactions and pay gas fees.
• Smart contract accounts: Can automatically perform functions like a “virtual assistant.”
• With the Pectra upgrade, EOA can “temporarily upgrade” to a contract account, allowing users to perform many more interesting features.
Example:
You want to send money to many friends at once without having to execute each transaction individually. With transaction batching, you only need to make a single transaction, saving time and gas costs. Alternatively, you can ask someone to sponsor the gas fee if you don’t have ETH in your wallet.
2. Reducing the number of validators but the network still runs smoothly (EIP-7251)
In simple terms:
• Currently, each validator on Ethereum is only allowed to stake a maximum of 32 ETH, leading to too many small validators operating. This puts pressure on the network to synchronize and maintain all nodes.
• After Pectra, the maximum amount of ETH each validator can stake increases to 2048 ETH, helping to reduce the number of validators and lighten the network while still ensuring security and efficiency.
Example:
Imagine you are operating a delivery fleet, but each vehicle can only carry 32 packages, which means you need many vehicles on the road, leading to traffic jams and management difficulties. With Pectra, each vehicle can carry up to 2048 packages, meaning you need fewer vehicles, saving operational costs, reducing congestion while still delivering on time.
Similarly, Ethereum will reduce the number of validators while enhancing the capability of each validator, making the network operate more efficiently.
3. Addressing data storage issues (Blob Capacity - EIP-7742 and EIP-7691)
In simple terms:
• “Blob” acts like storage compartments for Ethereum data, especially needed when using Layer 2 (L2) solutions like rollups.
• Currently, Ethereum limits blob storage capacity quite low (3/6). Pectra will increase this number to 6/9 and allow for more flexible adjustments.
Example:
Imagine you have a wardrobe that can only hold 3 outfits (blob). When you buy more clothes (increased L2 transactions), your wardrobe can’t hold enough. Pectra is like expanding and reorganizing the wardrobe, allowing you to store more items without worrying about overcrowding.
4. Preparing for the future - Fusaka upgrade after Pectra
In simple terms:
• After Pectra, Ethereum will continue with the Fusaka upgrade, focusing on improving data processing capabilities.
• Fusaka will implement EIP-7594, allowing network nodes to share and verify data faster, increasing scalability.
Example:
Imagine you are downloading a large movie from the Internet. Currently, you only have one server to download from, so it’s very slow. Fusaka is like splitting that movie into many small parts and downloading from multiple servers at once, speeding up the download without congesting the network.
In summary: What will Ethereum look like after Pectra?
1. More convenient for users: You will have more features such as transaction batching, gas fee sponsorship, and “smarter” accounts.
2. The network runs faster and more efficiently: Reduces congestion of validators, easing the load on the system.
3. Supporting future expansion: Preparing for a large volume of transactions and data as the user base continues to grow.
Pectra is a significant step, making Ethereum not only stronger but also ready for the future of blockchain. Stay tuned for the changes!
