Ethereum is preparing for the release of its next big detour, Pectra. This modernization holds a lot of promise to enact exciting and long-awaited changes that will positively affect users and developers alike. GreedyChain.com is going to tell you what Pectra really is all about. We parse the technical terms to bring you the good, helpful stuff that matters most. Pectra is now in testing on Ethereum testnets. That means that the changes are one step closer to being implemented on the network in full and on the main network!

What's Coming with Pectra?

Pectra is more than a single development — it’s an evolution. These upgrades are all designed to increase Ethereum’s energy efficiency, development adaptability, and user experience. This upgrade is made up of two major pieces EIP-7702 and blob capacity. Each improvement is an important step towards a more effective Ethereum network. This upgrade introduces greater validator flexibility by introducing the possibility for validators to stake varying amounts from 32 to 2048 ETH. For holders of MetaMask Staking products, there is no action needed with this upgrade. Rest assured your validator(s) or stake will keep earning rewards as normal. If you are just joining MetaMask Validator Staking for the first time, your validator activation time will be approximately 48 hours shorter than it is currently. This is under the premise that activation queue lengths will not change. According to Pectra’s creators, staking providers will have to overhaul their current software in order for Pectra to work.

EIP-7702: Temporary Smart Contract Code for EOAs

EIP-7702 introduces a groundbreaking concept: allowing Externally Owned Accounts (EOAs) – your regular Ethereum wallets – to temporarily act like smart contracts. How does it work? EIP-7702 enables EOAs to temporarily set a smart contract code for the wallet that is executable only during the transaction, allowing for more flexibility and functionality. This would allow your wallet to acquire temporary superpowers, performing magic multi-step logic and complex logic without having your wallet permanently turned into a smart contract.

This opens the door to a range of innovative use cases:

  • Batch transactions: Group multiple transactions into one, saving on gas fees.
  • Delegated execution: Allow a smart contract to execute transactions on your behalf, with your approval.
  • Sponsored transactions: Have someone else pay the gas fees for your transactions.

Together with EIP-7702, EIP-7706 serves a key role in moving Ethereum’s account abstraction plan forward. This new initiative is designed to further this goal by cracking the EOAs/smart contract accounts dichotomy. This simplifies the process of interacting directly with dApps and DeFi protocols, creating a much more seamless experience for the average crypto user. The proposal doesn’t go into specifics on how EIP-7702 would be designed. It paves the way for revocation of contract code, providing you with a powerful tool in managing and securing smart contract interactions. EIP-7702 is to be the first new standard transaction type to be added. This second type introduces a contract_code field that corresponds to the EOA itself, enabling far more complex and flexible transactions.

Increased Blob Capacity for Layer 2 Scaling

Perhaps the most important part of the Pectra upgrade are the fully fledged intentions to expand Layer 2 (L2) scaling solutions. L2s will substantially increase aggregate throughput. All this without sacrificing the decentralization and security of the original blockchain. To make these solutions work, Ethereum requires additional dedicated data storage, hence blobs. Blob storage is Microsoft Azure’s object storage solution for storing any type of unstructured data. Blob storage enables you to store unstructured data in the massively scalable object storage for data lakes.

According to Azure documentation, the max capacity of a storage account in any US or European region is currently 2PB. In every other area, the cap reduces to 500TB. To prevent exceeding the storage limit, architect your apps to use more than one storage account. This strategy is critical if you plan to go beyond 500TB. By increasing blob capacity, Pectra makes it more convenient for L2s to store even more relevant data. This improvement equally cuts their warehousing bills, allowing them to run a tighter operation.

Pectra is more than a technical upgrade. In doing so, it lays the groundwork for a more accessible and user-friendly Ethereum for all. By simplifying account management with EIP-7702 and boosting L2 scaling with increased blob capacity, Pectra addresses two key challenges facing the Ethereum ecosystem.

  • More transactions per second (TPS): L2 solutions can significantly increase the number of transactions that can be processed per second, reducing network congestion and improving overall performance.
  • Lower fees: By settling transactions off-chain, fees are greatly reduced, allowing for instant micropayments.
  • Lightning-fast payments: L2 solutions can introduce fast payments, as fast as milliseconds.

Why Pectra Matters

For developers, Pectra opens up exciting new avenues for creating groundbreaking applications and enhancing user experiences. EIP-7702 provides several flexible extensions for more complex and efficient smart contract interactions. At the same time, the greater capacity that Layer 2 solutions bring increases transaction speeds while lowering their costs.

For retail users, Pectra provides reduced costs and more efficient transactions. More broadly, it makes for a much better experience overall when using dApps and DeFi. It’s a win-win situation that’s sure to make Ethereum an even more attractive platform for developers and users to build on and use.

For everyday users, Pectra means lower fees, faster transactions, and a smoother overall experience when interacting with dApps and DeFi. It's a win-win situation that promises to make Ethereum a more attractive platform for both developers and users alike.