Ethereum Pectra Upgrade, Explained: Key EIPs & Why It Matters

Key Takeaways

• Pectra, live on mainnet since May 7, 2025, aims to enhance Ethereum’s scalability by doubling blob capacity, reducing layer-2 fees, and optimizing transaction throughput.
• The upgrade raises the validator staking cap from 32 ETH to 2,048 ETH, streamlining staking and improving validator efficiency.
• Pectra strengthens Ethereum’s security through improved validation mechanisms, though some experts raise concerns about EIP-7702’s complexity.
• Account abstraction via EIP-7702 enables smarter wallets, simplifying user interactions with features like gas sponsorship and batched transactions.

Ethereum’s Pectra upgrade successfully went live on the mainnet on May 7, 2025, at epoch 364032 (10:05 AM UTC), following rigorous testnet deployments on Holesky, Sepolia, and Hoodi between February and March 2025.

The upgrade aims to deliver scalability improvements, staking enhancements, lower transaction costs and smarter wallet features, marking Ethereum’s most significant update since the Merge in 2022.

Following the Dencun upgrade in 2024, Pectra continues Ethereum’s roadmap toward a more efficient and user-friendly blockchain. It introduces several Ethereum Improvement Proposals (EIPs) that optimize both the execution and consensus layers, making Ethereum faster, cheaper, and easier to use.

Let’s break down what Pectra brings to the table.

Ethereum Pectra Upgrade: Key EIPs & Features

The Ethereum Pectra upgrade combines two separate upgrades—Prague and Electra—into a single, more efficient release. This upgrade aims to improve various aspects of Ethereum’s functionality, including scalability, transaction efficiency, and security.

Here are the key EIPs (and improved features) included in this upgrade:

1. Smarter Wallets & Transaction Efficiency

• EIP-7702 – Allows wallets to temporarily act like smart contracts, enabling gas fee sponsorship, multi-action transactions, and session keys for a smoother user experience.

2. Staking Flexibility & Validator Enhancements

• EIP-7251 – Increases the max stake per validator from 32 ETH to 2048 ETH, reducing the need for multiple validator nodes.
• EIP-7002 – Enables easier validator withdrawals, allowing stakers to unstake ETH directly from the execution layer.
• EIP-6110 – Speeds up staking activation by processing deposits directly on-chain, reducing wait times for new validators.

3. Lower Layer-2 Fees & Improved Data Handling

• EIP-7691 – Doubles blob data capacity per block, reducing transaction costs for layer-2 rollups like Optimism and Arbitrum.
• EIP-7623 – Increases calldata costs to encourage rollups to use blobs, keeping fees stable while optimizing network efficiency.
• EIP-7840 – Introduces a configurable blob system, allowing Ethereum to adjust blob capacity in future upgrades without requiring hard forks.

4. Faster & More Scalable Network

• EIP-2537 – Adds BLS cryptography support, making Ethereum cheaper and faster for zero-knowledge proofs, bridges, and layer-2s.
• EIP-2935 – Extends block history from 256 blocks (~51 minutes) to 8192 blocks (~27 hours), improving smart contract reliability and cross-chain interactions.
• EIP-7549 – Optimizes validator voting (attestations), reducing network congestion and making Ethereum’s consensus process more efficient.
• EIP-7685 – Improves communication between Ethereum’s execution and consensus layers, making staking deposits and exits faster and smoother.

Why Pectra Matters

Ethereum’s Pectra upgrade makes the network:

• Cheaper: Lower gas fees for Layer-2 rollups and optimized data costs.
• More efficient: Faster validator activation and smoother smart contract interactions.
• User-friendly: Smarter wallets, gas fee sponsorship, and enhanced staking management.
• Scalable: Better data handling and cryptographic improvements for a high-performance blockchain.

Ethereum’s Pectra Upgrade Is Live—What’s Next After the Milestone?

Ethereum’s Pectra upgrade went live on the mainnet on May 7, 2025, after testing on Holesky, Sepolia, and Hoodi from February to March.

Despite some bugs during the testnet phase that required an extra round of testing, the upgrade was successfully finalized. In future, Ethereum aims to introduce Verkle trees, a powerful data structure that will reduce node storage requirements and enable nearly instant syncing. They will achieve this by replacing the current Merkle Patricia Trie with a more efficient structure that allows for smaller proof sizes, facilitating the transition towards stateless Ethereum clients.

This transition is crucial for Ethereum’s scalability, as it addresses the challenges associated with maintaining extensive state data. The implementation of Verkle trees is a pivotal step in Ethereum’s roadmap, with ongoing research and development focused on integrating this technology to improve network performance and user experience.

Also, developers are now turning their attention to the Fusaka upgrade, expected later in 2025, which aims to boost scalability even further.

Key features of the Fusaka upgrade:

• PeerDAS (Peer Data Availability Sampling): This feature allows Ethereum nodes to verify data availability by sampling portions of the data instead of downloading entire datasets. This approach reduces bandwidth requirements and improves scalability, enabling the network to handle more transactions efficiently.
• EVM Object Format (EOF): Initially planned for inclusion in Fusaka, EOF was designed to restructure Ethereum’s bytecode format for improved efficiency and security. However, due to technical uncertainties, developers have decided to postpone its implementation to avoid potential delays in the Fusaka rollout.

Conclusion

Ethereum’s Pectra upgrade, live since May 7, 2025, marks a pivotal step toward a scalable, efficient, and user-friendly blockchain. By merging the Prague and Electra upgrades, Pectra addresses high transaction fees, network congestion, and validator management through 11 EIPs.

Despite a successful launch, ETH’s price has remained stable, with analysts noting that the upgrade’s full impact may unfold gradually. Pectra lays a robust foundation for Ethereum’s next phase, including the Fusaka upgrade in late 2025.

FAQs