Pectra Upgrade: The Largest Upgrade in Ethereum History

The hottest topic in the Ethereum community recently is the upcoming Pectra upgrade. This upgrade combines the Prague and Electra independent upgrades, which respectively target changes to the network execution layer and consensus layer. Pectra is expected to officially launch in the first quarter of 2025 and may become the largest upgrade in Ethereum's history.

Core Improvement Content

EIP-7702: Account Abstraction Innovation

EIP-7702 allows existing EOA accounts to temporarily gain the ability to execute smart contract code, greatly enhancing the functionality and flexibility of EOAs. Key features include:

• Temporarily allocate smart contract code to EOA in a single transaction
• Achieve batch processing and complex trading instructions
• Introduce a permission downgrade mechanism to enhance account security.
• Supports trading sponsorship, simplifying user experience

This improvement may pave the way for the emergence of new Web3-friendly wallets and facilitate complex DeFi applications.

EIP-7623: Optimize Layer 2 Performance

The proposal aims to reduce block size by increasing calldata costs, thereby improving overall Layer 2 performance. The main impacts include:

• Optimize transaction processing speed and resource utilization efficiency
• Reduce the data publishing costs of Layer 2 solutions
• Beneficial for the development of decentralized ranking projects

EIP-7594(PeerDAS): Data Availability Sampling

PeerDAS enhances the scalability of Ethereum by distributing the responsibility for data availability across the network. Main features:

• Improve the network's ability to process a large number of transactions
• Enhance the network's ability to resist attacks and interruptions.
• Support the development of DeFi and cross-chain applications

This improvement will be beneficial for the development of the ZK Prover network and may give rise to a number of high-valued ZK-related projects.

EIP-7251: Increase Validator Staking Limit

The proposal suggests increasing the validator staking cap from 32 Ether to 2048 Ether. Main purpose:

• Reduce network operating costs
• Enhance economic security
• Simplify the operations of large node operators

Potential Impact

1. Promote the birth of a new generation of Web3-friendly wallets and complex DeFi applications.

2. Significantly improve Layer 2 performance and reduce operational costs.

3. Promote the development of the ZK Prover network and related projects.

4. May trigger a new round of price increase in the Ethereum ecosystem

5. Provide better entry opportunities for institutional investors, especially in the DeFi and innovative DeFi project sectors.

The Pectra upgrade marks an important milestone in the development of Ethereum and will have a profound impact on the entire ecosystem. As the upgrade date approaches, related projects and investment opportunities deserve close attention.