Updated on February 25, 2025: Ethereum Pectra Upgrade Approaching
The Ethereum Foundation has announced that the Pectra upgrade will go live on the Holesky testnet today (25th). Developers can deploy smart contracts and perform transactions on the testnet to verify the functionality of the Pectra upgrade.
The launch of the Holesky testnet marks the official start of the testing phase for the Pectra upgrade and prepares for the upgrade of the Ethereum mainnet. After thorough testing on the Holesky testnet, if no issues are found, the Pectra upgrade can be deployed on the Ethereum mainnet, thereby enhancing the performance and functionality of the Ethereum network.
Following the Dencun upgrade, the Pectra upgrade is another important milestone. The Dencun upgrade reduced transaction costs on the layer 2 network and improved the economic model of Ethereum Rollup. The Pectra upgrade will introduce several new features, including enhanced Ethereum account functionality, support for layer 2 scaling, and improvements in validator user experience.
Why is it necessary to go live on the testnet?
Blockchain upgrades have a significant impact on the overall operation. If an upgrade is directly implemented on the mainnet and issues arise, it may lead to the collapse of the Ethereum network or loss of user assets.
To ensure the stability and security of the upgrade, it is common practice to conduct testing on the testnet to identify potential issues and promptly address them, thus avoiding major errors on the mainnet.
At the same time, it allows developers time to adapt to the new features and make corresponding adjustments to their applications by gaining early knowledge of the Pectra upgrade.
What is happening?
The Pectra upgrade is an upcoming significant upgrade for Ethereum, expected to be launched in early 2025. This upgrade includes multiple improvements that have garnered considerable attention from many users.
This upgrade will enhance network efficiency and scalability, reduce network congestion, lower transaction costs, improve overall performance of Ethereum, and improve user experience. It is a crucial step for the entire Ethereum ecosystem.
What is Ethereum “Pectra Upgrade”?
The Ethereum upgrade refers to making changes to the Ethereum blockchain to improve its functionality and performance. These upgrades usually consist of multiple Ethereum Improvement Proposals (EIPs).
The synthetic word “Pectra,” derived from Prague and Electra, is the codename for this upgrade.
The Ethereum upgrade can be divided into the Execution Layer and the Consensus Layer. The consensus layer upgrades are typically named after constellations, while the execution layer upgrades are named after cities.
Imagine Ethereum as a busy highway with millions of cars driving on it each day. As traffic volume increases, the road becomes congested, causing slower speeds and higher fees, which can be frustrating for users.
The Pectra upgrade for Ethereum is like expanding the lanes on this highway, improving the existing congestion problems and making traffic flow more smoothly. Additionally, the Pectra upgrade is not just about widening the road; it includes many significant improvements that will directly impact Ethereum’s performance, usability, and future development direction.
Further reading: Ethereum “Dencun” Upgrade is Here! Why is an upgrade necessary? Will toll fees decrease? Core developers reveal the details.
Key Points of the Ethereum Pectra Upgrade:
Account Abstraction
Simplify user interaction with Ethereum, enhance wallet flexibility, and security.
Staking Improvements
Increase the maximum staking amount from the original 32 ETH to 2048 ETH, which is significant for individuals and businesses holding a large amount of ETH.
Reduce the number of validators and alleviate network congestion.
Shorten staking queue time and improve execution speed.
Scalability Enhancement
Introduce PeerDAS (Peer Data Availability Sampling) to assist second-layer networks in handling data more easily, reducing costs, and improving processing speed.
Expand blob (a large virtual sticky note recording transaction data on the chain) capacity, reducing transaction costs on the second-layer blockchain.
Improve overall network scalability.
Changes brought by the Pectra upgrade
Slow and expensive transactions on the blockchain have been a major challenge and obstacle for Ethereum, testing users’ patience and limiting the development of on-chain applications.
As an important milestone for Ethereum, the Pectra upgrade is expected to have an impact on technical aspects, user experience, ecosystem development, and the potential value of Ether (ETH).
Change 1: Blockchain network performance
Improved transaction speed: Through improvements like account abstraction, Pectra is expected to reduce transaction confirmation time, eliminating the need for users to wait for transactions to complete for an extended period.
Lower transaction costs: With improved scalability, transaction costs on the second-layer blockchain are expected to decrease, making it more affordable for users to transact.
Reduced network congestion: Increasing the maximum staking amount helps reduce the number of validators, alleviating network congestion and enhancing Ethereum’s overall efficiency.
Change 2: User experience
More flexible operations: After the upgrade, user interaction with Ethereum will be further simplified, making wallet operations more flexible and convenient. For example, one-click upgrading of smart accounts (also known as account abstraction) can make it easier to recover lost wallets or conduct transactions.
Enhanced security: Through improvements such as account abstraction, users’ asset security will be better protected.
Change 3: Impact on ecosystem development
Attracting more developers: With overall network cost reduction and improved processing speed, the upgrade is expected to attract more developers to engage in the Ethereum ecosystem.
Promoting the development of second-layer blockchains: The scalability enhancement will provide better conditions for the development of second-layer blockchain networks, promoting the prosperity of the entire ecosystem.
Change 4: Potential impact on Ether
Value appreciation: With the improvement of Ethereum’s network performance and ecosystem prosperity, the value of Ether is expected to increase.
Market attention: As an important milestone for Ethereum, the Pectra upgrade is expected to attract widespread market attention, which may cause fluctuations in the coin’s price.
Long-term impact: In the long run, the success of the Pectra upgrade will help solidify Ethereum’s position in the blockchain field and lay the foundation for the long-term development of Ether.
Since the release of the Ethereum whitepaper in 2013, there have been 12 major upgrades. Ethereum’s upgrades are an ongoing process, bringing significant improvements to the Ethereum network with each upgrade. From early infrastructure to consensus mechanism transitions and scaling solutions, Ethereum continues to evolve to meet the growing network demands and maintain its leading position in the blockchain field.
While the impact of Pectra may not be as direct as previous upgrades, it is still an important step in leading the entire Ethereum ecosystem toward a more efficient, convenient, and secure blockchain world.
References: coindesk, cointelegraph