Ethereum officially launches Pectra update

​Ethereum’s latest upgrade, Pectra, has officially gone live, marking a pivotal moment for the network as it introduces advanced features like account abstraction, increased staking limits, and enhanced scalability. 

The upgrade, which activated on May 7 at epoch 364032, implements three key Ethereum Improvement Proposals (EIPs) aimed at boosting user experience and network efficiency, reports Cointelegraph.

Key Takeaways

- EIP-7702 Introduces Smart Accounts: External accounts can now act as smart contracts, covering gas fees with tokens other than Ether.

- Validator Limits Expanded: EIP-7251 raises staking caps from 32 ETH to 2,048 ETH, streamlining institutional staking operations.

- Scalability Enhanced: EIP-7691 increases data blobs per block, optimizing Layer-2 scalability and reducing transaction fees.

Better Account Abstraction: Smart Accounts Become Reality

Pectra’s EIP-7702 introduces “smart account” functionality, enabling externally owned accounts to operate more like smart contracts. According to 0xAw, lead developer at Ethereum Layer-2 DEX Alien.Base, this could revolutionize the user experience by allowing developers to automate tasks and minimize the need for transaction approvals.

Ethereum price chart. Source: Coinmarketcap

“Developers can now implement seamless user flows where transactions are approved in bulk rather than individually,” 0xAw said.

Additionally, this EIP enables gasless transactions, making Ethereum more user-friendly and aligning it with the Web2-like UX many dApp developers aspire to achieve.

However, critics caution that the upgrade may expose users to new attack vectors. Mike Tiutin, CTO at PureFi, warned that malicious actors could exploit the new smart account feature to target wallets rather than individual tokens.

“It expands the scope of potential scams from single-token approval to entire wallet access,” Tiutin noted.

Institutional Staking Gets a Boost with EIP-7251

For institutional players, EIP-7251 offers significant advantages by raising the staking cap from 32 ETH to 2,048 ETH. According to Artemiy Parshakov, VP of institutions at Ethereum staking service P2P.org, this modification reduces operational complexity for staking service providers and their clients.

“Previously, stakers had to wait around 13 hours to receive exit messages from providers. Now, the wait time has been cut to 13 minutes, reducing friction for large-scale operations,” Parshakov explained.

Additionally, the increased cap may attract more institutional investors, as staking large amounts of ETH will no longer require multiple validator nodes, simplifying management and lowering risk.

Data Availability and Consensus Upgrades

EIP-7691 tackles Ethereum’s data scalability issues by increasing the number of data blobs per block. This change effectively boosts Layer-2 throughput and lowers transaction fees, making Ethereum more competitive as a base layer for rollup solutions.

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Meanwhile, EIP-6110 brings key consensus-level upgrades, ensuring more reliable validator deposits. By including deposit data directly within execution-layer blocks, Ethereum reduces potential lag and increases consensus layer stability.

However, these deep-level changes come with potential risks. Parshakov noted that past client bugs disrupted Holesky and Sepolia test networks, underscoring the importance of vigilant monitoring as Pectra goes live.

Looking Ahead: What Pectra Means for Ethereum

Ethereum’s Pectra upgrade introduces significant improvements to account abstraction, staking operations, and Layer-2 data management, laying the groundwork for a more scalable and user-friendly ecosystem. While developers and institutional investors welcome these enhancements, security experts caution that expanded functionalities could also open new attack surfaces.

In the months ahead, the Ethereum community will closely monitor the impact of Pectra on network security, staking activity, and Layer-2 adoption, with the potential for further refinements based on real-world usage and emerging risks.

Recently we wrote that Cycle Network has announced its support for the upcoming Ethereum Pectra upgrade, scheduled for activation on May 7, 2025.