The Ethereum network is set to undergo the Pectra upgrade, which combines the Prague and Electra upgrades to enhance both its execution and consensus layers. This upgrade succeeds the Dencun update, an amalgamation of Deneb and Cancun, designed to reduce transaction fees and boost scalability. Ethereum network developer Terence Tsao confirmed that Pectra successfully went live on the Sepolia test network, showcasing a flawless proposal rate, although issues with Holesky test network remain unresolved.
The Pectra upgrade comprises two stages, aimed at improving scalability and allowing payments of gas fees with stablecoins. Phase one, scheduled for mid-March 2025, will double layer-2 blob capacity to reduce transaction costs, enable stablecoin gas payments, and increase validator staking limits. Phase two, expected in late 2025 or early 2026, will introduce Verkle trees for efficient data storage and PeerDAS to improve scalability. These enhancements will support Ethereum’s transition to stateless clients and reduce hardware requirements.
The Pectra upgrade introduces 11 pivotal Ethereum Improvement Proposals (EIPs), including increased staking limits, optimized data handling for layer-2 solutions, and flexible transaction capabilities through smart accounts, all aimed at improving user experience, scalability, and network efficiency. Verkle trees and associated improvements in data storage will be implemented in a subsequent upgrade nicknamed “Fusaka,” continuing Ethereum’s development roadmap post-Merge.
