The Ethereum network is improving with Prague/Electra (Pectra) because it works smarter and is easier than ever before.

Ethereum sets periodic upgrade phases known as hard forks to stay functional and enable further growth. The network upgrade demands all participants switch to the latest blockchain version, which includes fresh operating rules. In April 2023, the Shanghai-Capella update allowed validators to receive their Ethereum staked in the Beacon Chain.

Pectra will become Ethereum’s third major update from September 2022 to late 2024 or early 2025. Ethereum’s merger changed from a proof-of-work system to a proof-of-stake system, which helped decrease its network energy usage.

Shanghai became active in April 2023, enabling ETH validator nodes to retrieve their deposited ETH for additional financial flexibility. In March 2024, the Dencun software update introduced proto-danksharding features to help the Ethereum network speed up transactions.

The Pectra update will help basic Ethereum accounts work better under program control, lower L2 expenses, and smart contract needs, and let validators customize their validation practices. The system updates will help Ethereum work better with different user types while meeting the needs of various industries.

Understanding the Pectra Ethereum Upgrade

The Prague and Electra upgrade projects were delivered as a new upgrade program called Pectra after decision-makers combined them for better efficiency. Pectra encompasses changes across the two major areas of the Ethereum system. The execution layer is the platform for smart contracts and decentralized applications (dApps).

The consensus layer enables the Proof of Stake consensus procedure. The latest update requires implementing 20 Ethereum Improvement Proposals. These include:

• Nine official updates help Ethereum gain new tools and features.
• These updates form the Meta EIP by grouping eleven separate EIPs into one entity to make the transition easier.

Purpose and Long-Term Goals of the Pectra Upgrade

The Pectra upgrade creates basic foundations for the advanced development of Ethereum’s systems. It supports code changes ready for Ethereum’s future Verkle tree implementation.

Verkle trees enhance the way Ethereum nodes organize and access data in an advanced data management system. The upgrade lets users store and validate data more effectively with smaller evidence files.

• Ethereum will process transactions faster when its network scales.
• The updated storage takes less space on each node, which helps them support the network more easily.

Key Features and Potential Adjustments

The website Ethereum.org reports that Pectra will consist of ten Ethereum Improvement Proposals or EIPs. Since Ethereum maintains this authority, its developers can update the system’s implementation.

• Developers can change the Pectra elements as needed during the months before activation.
• The team should include or drop selected EIPs as their work requirements change.

The better option is to split the system update across several stages rather than put everything into one release. Ethereum keeps improving its networks so users can expect better performance, heightened security, expanded capacity, and easy support for new technologies.

Overview of Proposed Ethereum Improvement Proposals (EIPs)

EIP documents present new Ethereum methods for optimizing blockchain systems and validator operations. EIP authors want to boost Ethereum’s operating speed and security while adding better capacity.

Enhancements to Cryptographic and Historical Data Management

• EIP-2537 creates a new precompile for handling BLS12-381 curve operations through efficient cryptographic processing.
• EIP-2935 enables users to find historical block hashes stored within the blockchain state data more easily.

Validator and Consensus Mechanism Upgrades

• The EIP 6110 change adds an on-chain mechanism to supply validator deposits, easing validator signing procedures.
• EIP-7002 creates exit options that validators can start when execution activities happen to improve exit operations.
• Through EIP-7251 validators can stake at higher amounts to make their operations more efficient.
• EIP-7549: Moves the committee index outside the Attestation structure to refine consensus participation mechanisms.

Improvements in Execution and Smart Contract Functionality

• EIP-7594 adds PeerDAS (Peer Data Availability Sampling) to boost decentralized data validation methods.
• EIP-7685 sets up guidelines to build new request types for the execution layer to improve smart contract connections.
• EIP-7702: This feature enables setting an Externally Owned Account (EOA) code for a single transaction, increasing flexibility in smart contract execution.

Comprehensive Ethereum Virtual Machine (EVM) Upgrades (EIP-7692)

• Meta-EIP 7692 Ethereum Virtual Machine (EVM) updates combine major improvements to EVM code and execution standards.
• EIP-663 implements SWAPN, DUPN, and EXCHANGE instructions to enhance how programmers work with the stack functions.
• EIP-3540 defines the first edition of EVM Object Format (EOF v1) to ease contract reuse.
• EIP-3670 creates checks to confirm that the organized contract code runs correctly.
• EIP-4200 brings static relative jumps to improve the efficiency of control flow operations.
• EIP-4750 brings functional options to the EOF structure that help organize contracts more efficiently.
• EIP-5450 makes the EVM check stack data more thoroughly to defend against execution risk.
• EIP-6206 brings improved contract control by letting users perform JUMPF and non-returning operations.
• EIP-7069 develops new CALL instructions that let contracts connect to each other more effectively.
• EIP-7480 lets contracts access data section memories to handle information more effectively.
• EIP-7620 establishes new ways to create contracts using EOF methods for updated deployment solutions.
• The new EIP-7698 system provides an easy EOF-based creation method to accelerate smart contract activation.

These proposals collectively enhance Ethereum’s efficiency, security, and usability, laying the groundwork for a more scalable and developer-friendly blockchain ecosystem.

How Pectra Upgrade Enhances Ethereum’s Ecosystem

The Pectra update will benefit Ethereum users, developers, and network capacity through various platform changes. The Pectra update improves blockchain performance across all its main components.

Enhancing User Accessibility

With the Pectra update, Ethereum focuses on reducing complexity when users connect to its platform. Enabled smart contract wallets help users manage transaction fees using any token while executing multiple transactions in batches, plus defining their security settings. Users benefit from better applications through dApp enhancements that make them easier to use and operate without technical barriers.

Optimizing Developer Experience

Pectra gives developers better ways to create and launch smart contracts more efficiently. Through EIP-7692, the EVM Object Format provides developers with an advanced framework to design smart contracts more organized and effectively. The system enables faster operations while diminishing expenses to help developers work better on Ethereum.

Laying the Groundwork for Scalability

As an intermediary update, Pectra prepares Ethereum systems to better handle upcoming scaling solutions. The update makes Ethereum more ready to handle Verkle Tree technology by improving the performance of its core architecture and transactions.

Strengthening Network Security

Through its multiple security updates, Pectra delivers secure improvements to protect against potential threats. The system additions boost Ethereum’s security checks to protect against new online dangers. The Pectra upgrade increases network security levels, which helps Ethereum remain fully operational and dependable for years.

The Pectra Upgrade helps Ethereum work better with its security enhancements and capacity upgrades. The update supports Ethereum’s overall strategy by making it more powerful and easier to use while safeguarding against security threats. The Pectra launch forms the base on which Ethereum designs future upgrades to create a faster and more secure system.

Ethereum co-founder Vitalik Buterin met with investors in January 2025 to discuss ETH values and layer-2 performance. He stated that L2 networks should support ETH price stability by burning transaction fees or letting community members stake their funds.

Buterin suggested that all chains should follow common standards to talk with one another and stated that better safety protections are essential. He asked everyone to protect against censorship on layer-2 networks, so Ethereum remains decentralized. According to Buterin, he runs Ethereum under wartime principles because these issues require urgent attention.