Exploring the Ethereum Pectra Upgrade: Enhancing the Web3 Experience

Pectra Upgrade

The Ethereum network has taken a significant leap forward with its latest major upgrade, Pectra, activated on May 7, 2025. Combining the Prague execution layer hard fork and the Electra consensus layer upgrade, Pectra introduces improvements that enhance scalability, security, and user experience. As the 16th major upgrade since Ethereum’s inception in 2015, Pectra continues the blockchain’s tradition of evolving to meet the demands of a growing decentralized ecosystem. This article explores the key features of Pectra, its technical advancements, and its implications for users, developers, and the broader Web3 landscape.

The Two Layers

Ethereum network is divided into 2 layers : Execution Layer and the Consensus Layer. These layers used to operate independent of one another but after “The Merge”, these layers run parallel.

Execution Layer is responsible for execution of smart contracts & processing transactions as well as maintaining the state of Ethereum network. The hard fork corresponding to this layer is called Prague.

Consensus Layer ensures that all transactions and smart contracts are validated and agreed upon by all nodes via PoS. The hard fork corresponding to this layer is called Electra.

Key Features And Innovations

Pectra introduces 11 EIPs, the highest number in any Ethereum upgrade, each addressing specific aspects of the network. Below, we delve into the most impactful changes, categorized by their contributions to user experience, staking, and scalability.

Smart Accounts and Account Abstraction (EIP-7702)

A standout feature of Pectra is EIP-7702, which introduces account abstraction. This allows externally owned accounts (EOAs) — standard Ethereum wallets controlled by private keys — to temporarily function as smart contracts. This enables advanced functionalities, such as:

1. Transaction Bundling: Users can combine multiple actions into a single transaction, simplifying complex operations.
2. Flexible Gas Payments: Gas fees can be paid with alternative cryptocurrencies, reducing reliance on ETH.
3. Delegation and Sponsorship: Users can delegate transaction signing to others or have fees sponsored, enabling gasless transactions.

These features promise to make Ethereum wallets more intuitive, similar to smartphone apps, lowering barriers for new users. Great example of this is how Metamask has built a Delegation Toolkit which is a set of Solidity smart contracts & interfaces that can be incorporated into any smart contract to let the smart contract issue any delegations.

Staking Enhancements

Pectra significantly improves Ethereum’s staking mechanism, making it more accessible for both individual and institutional investors. Key EIPs include:

• EIP-7251: Increases the maximum effective balance for validators from 32 ETH to 2,048 ETH. This allows validators to stake larger amounts without running multiple instances, reducing operational complexity and network load. Coinbase highlights that this streamlines staking for large-scale participants.
• EIP-7002: Enables execution-layer triggered exits, allowing smart contracts to manage validator withdrawals. This is particularly beneficial for staking pools, automating asset management.
• EIP-6110: Moves validator deposit processing to the execution layer, improving transparency and reducing security risks. It’s a more secure way of handling deposits native to merged Ethereum. It also helps to future-proof the protocol because it doesn’t require historical deposits to bootstrap the node, which is necessary for history expiry.

These changes encourage broader participation in securing Ethereum’s network, as outlined in the Ethereum roadmap.

Scalability Improvements for Layer 2 Solutions

Pectra builds on the Dencun upgrade’s introduction of “blobs” for Layer 2 (L2) rollups, which process transactions off-chain to reduce costs. Check this article for more info on Dencun and blobs. Key EIPs enhancing scalability include:

• EIP-7691: Doubles the blob count per block, increasing the target from 3 to 6 and the maximum from 6 to 9. Blobs store temporary data for L2 rollups, making transactions cheaper. This is expected to significantly lower fees on L2 networks like Optimism or Arbitrum during high demand.
• EIP-7742: Introduces dynamic blob capacity adjustment, allowing the network to adapt to varying transaction volumes and preparing Ethereum for future scaling needs.

By enhancing L2 efficiency, Pectra supports the growth of dApps, from DeFi platforms to NFT marketplaces, making Ethereum more competitive with other blockchains.

Other Notable EIPs

Pectra includes additional EIPs that optimize various aspects of the protocol:

• EIP-7549: Moves the committee index outside attestations, reducing bandwidth and processing overhead for validators.
• EIP-2935: Stores the last 8,192 block hashes in the state, enabling advanced on-chain applications and improving data accessibility for developers.
• EIP-2537: Adds a precompile for the BLS12–381 curve, enhancing cryptographic efficiency for staking and cross-chain interactions.
• EIP-7623: Increases calldata cost from 16 to 42 gas per byte, encouraging the use of blobs over traditional calldata.
• EIP-7840: Standardizes blob scheduling in execution layer configuration files, improving network coordination.

Project Idea: Build a Social Recovery Wallet with Pectra’s EIP-7702

Losing a private key can be a nightmare, but with social recovery, you can let trusted friends or family help you regain access to your wallet without compromising security. It’s a great way to make crypto more approachable for newcomers, and Pectra makes it easier than ever.

Conclusion

The Pectra Upgrade is a game-changer for the Web3 world, bringing smarter accounts, smoother staking, and cheaper transactions to the table. With features like account abstraction and enhanced L2 scalability, Ethereum is becoming more user-friendly and powerful, opening doors for everyone from casual users to hardcore developers. So, whether you’re building the next big dApp or just exploring Web3, now’s the perfect time to dive in and see what Pectra can do for you!

Exploring the Ethereum Pectra Upgrade: Enhancing the Web3 Experience was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.