Ethereum Evolution: Pectra Upgrade

Ethereum staking revolution: the era of 2048 ETH has arrived!

Written by: Consensys

Compiled by: Nicky, Foresight News

The Ethereum Pectra upgrade will take place today at 18:05 Beijing time, marking the first upgrade since the Cancun upgrade in March last year. This upgrade includes a staggering 64-fold increase in the maximum stake amount for validators to 2048 ETH (EIP - 7251). Can whale assets reshape the Ethereum network landscape? Meanwhile, the execution layer directly opens up the autonomy for validators to exit (EIP - 7002). Will the exit mechanism be able to take over the Ethereum lifecycle?

What is Pectra

Since its inception, Ethereum’s goal has been to create a new decentralized trust foundation to build a new system for global settlement. To achieve this goal, the Ethereum developer community has continuously evolved the protocol, with approximately 15 updates to the core technology implemented so far. The 16th update - Pectra, is another significant upgrade to the Ethereum network, scheduled to officially launch on May 7, 2025.

Pectra combines two synergistic updates: the Prague execution layer hard fork and the Electra consensus layer upgrade. Pectra is the first upgrade since the Cancun (Dencun) upgrade in March 2024, and it will become the most feature-rich upgrade to Ethereum to date, planning to incorporate 11 Ethereum Improvement Proposals (EIPs). These EIPs will jointly bring key features that drive Ethereum’s development: significant updates to the core user experience through the implementation of smart accounts and delegation features; upgrades to the staking functionality, making it easier for institutions and individual investors to secure the network; and substantial improvements to integration with Layer 2 networks (L2), which are expected to double network efficiency. Overall, Pectra is a significant and exciting update that will change the landscape of Web3.

Behind the technology and EIPs, these upgrades will make Ethereum faster, more user-friendly, and more efficient. The core user interface of the network — the wallet — will see the most significant improvement in the network’s history with the introduction of smart accounts. Smart accounts allow end-user accounts to operate like smart contracts, essentially turning every wallet into a programmable platform that meets user needs. The staking functionality will undergo major enterprise-level updates, with the fund cap increased by 64 times and new features such as incremental staking balances introduced. This will make it easier for institutions to establish and manage their validation nodes while significantly reducing unnecessary network overhead. For Layer 2 networks (L2), the available block (blob) space will double, which will allow its performance to double right from the initial stage, thereby reducing costs and speeding up transaction speeds.

“Pectra marks a new phase for Ethereum, proving that the protocol is continuously evolving!” — Mehdi AOUADI, Senior Protocol Engineer at Consensys said.

Ethereum Continues to Evolve Through Hard Forks

Ethereum is one of the most active networks in the world: it brings together a large and focused group of developers dedicated to driving its development. As a result, Ethereum is always evolving to improve scalability, security, and user-friendliness. These improvements are implemented through hard forks, which are protocol upgrades that affect the entire network and adjust the operational mechanisms of Ethereum. Hard forks are not backward-compatible, meaning all node operators must update their software to stay in sync with the network. These upgrades may involve the execution layer (the layer that handles transactions and smart contracts), the consensus layer (the layer responsible for block validation and stake), or adjustments to both.

In the past two years, Ethereum has completed three major hard forks: The Merge, Shanghai/Capella, and Cancun (Dencun). Each hard fork has played a key role in Ethereum’s long-term roadmap. The Merge completed the transition to Proof of Stake (PoS), significantly reducing energy consumption. Shanghai/Capella unlocked the validator withdrawal feature, reinforcing the staking mechanism. Cancun introduced blob transactions, significantly lowering rollup costs and initiating Ethereum’s rollup-centric scaling strategy.

The upgrade of the Ethereum network is implemented through Ethereum Improvement Proposals (EIPs): these are open-source project proposals put forward, collaboratively refined, and ultimately realized by the community. The number of EIPs included in the Pectra upgrade has reached a historical high, with all proposals focused on optimizing the three core areas of user experience (UX), staking, and layer two networks (L2).

“Upgrades like Pectra may seem like technical updates on the surface, but they are actually making Ethereum easier to use, more scalable, and more aligned with user habits.” — Tian Lim, Technical Project Management Director at Consensys.

The Future Roadmap for Global Financial Settlement on Ethereum

These upgrade initiatives are in line with Ethereum’s grander vision, which is built around six roadmap phases: The Merge, The Surge, The Scourge, The Verge, The Purge, and The Splurge. These phases focus on sustainability, scalability, anti-censorship, state optimization, and overall improvement. As Ethereum gradually advances through these phases, each hard fork will become an important milestone in pushing the protocol towards its goals.

At the heart of this roadmap is an ambitious and increasingly feasible ambition: to make Ethereum the global financial settlement layer. Build a platform that can handle all kinds of transactions safely and efficiently, whether it’s micropayments, token transfers, cross-chain transactions, decentralized lending, and institutional-facing staking, all operations can be completed on-chain and achieve seamless integration on a global scale. To achieve this, Ethereum must continue to improve performance and reduce costs, while supporting a seamless user experience without compromising on decentralization.

Currently, Ethereum is preparing for its next major upgrade - Pectra, which will be based on the foundation laid by previous hard forks. Next, let’s delve into all the Ethereum Improvement Proposals (EIPs) that are planned to be included in the Petra upgrade.

Progress of Each Phase of the Ethereum Roadmap

• The Merge: Completed (September 2022)

Transitioning from Proof of Work to Proof of Stake. This change has brought significant energy efficiency improvements and laid the foundation for the stake feature.

• The Surge: In Progress (Cancun upgrade completed, Pectra upgrade ongoing)

Key point: Achieve scalability through rollups and data availability.

Key upgrades: Proto - danksharding (EIP - 4844), data block (blob) transactions (introduced in Cancun upgrade), increased data block capacity (Pectra upgrade plan)

• The Scourge

Key Point: Minimize Maximum Extractable Value (MEV) and enhance censorship resistance. Currently, Proposer-Builder Separation (PBS) is in progress along with work that includes aspects of fairness.

• The Verge

Key point: Improve state efficiency through Verkle trees. This will reduce storage requirements and enhance node performance.

• The Purge

Key points: Simplify the protocol and clean up technical debt. Remove historical data burdens and reduce node requirements.

• The Splurge

Key points: Finalization work and other improvements. Including user experience fixes, cleanup, and feature optimization.

Pectra Upgrade Contents

The Ethereum Improvement Proposal (EIP) planned to be included

EIP - 7702

Set Up External Owned Account (EOA) Account Code

Allow externally owned accounts (EOAs) to operate like smart contract accounts (SCAs) during a single transaction without the need to migrate to a smart contract account (SCA) to unlock features such as sponsorship and delegation.

This proposal introduces a capability that allows externally owned accounts to temporarily behave like smart contracts by attaching executable code to a single transaction.

Without this proposal, externally owned accounts will remain in a stagnant state. If users want to utilize features such as transaction batching, gas sponsorship, or smart recovery, they must migrate to a full smart contract account. This EIP cleverly addresses this issue by allowing externally owned accounts to temporarily adopt custom validation logic only for relevant transactions. It is very user-friendly and represents a significant transformation in wallet user experience, effectively bridging the gap between externally owned accounts and account abstraction.

EIP - 7251

Increase Maximum Effective Balance

Increase the staking limit for validators from 32 ETH to 2048 ETH, reducing the number of validators and improving network efficiency.

The proposal raises the maximum effective balance for each validator from 32 ETH to 2048 ETH. The current limit of 32 ETH has led to a surge in the number of validators, putting pressure on the network and increasing the hardware requirements for node operators.

If this upgrade is not implemented, the pool of Ethereum validators will uncontrollably continue to grow. By allowing each validator to stake a higher amount, this EIP reduces the number of validators, simplifies the block generation and finality process, and enhances the overall performance of the network. Users may not immediately notice this change, but it is crucial for the sustainable development of Ethereum under large-scale applications.

EIP - 7002

The execution layer can trigger the exit mechanism

Allow validators to exit the network through the execution layer, achieving a smarter and more programmable staking workflow.

This proposal allows validators to initiate the process of exiting the network through the execution layer, rather than being limited to relying solely on the mechanisms of the consensus layer. Previously, validators could only depend on the consensus layer and could not achieve automated or contract-driven exit operations.

Without this flexibility, it will be difficult to build advanced use cases such as staking managers or automated strategies based on smart contracts. This EIP increases programmability and composability by allowing the execution layer to initiate validator exit operations. Although this is not a feature directly aimed at end users, it enhances the flexibility of staking and lays the groundwork for more advanced validator services.

EIP - 6110

On-chain supply validator stake

Transfer the validator’s deposit to the execution layer, simplifying and making the staking participation process more transparent.

By supplying validator deposits directly on-chain through the execution layer, the participation process for validators has been optimized. Previously, deposits had to go through the consensus layer relay, which added unnecessary complexity and could lead to delays.

Without this EIP, Ethereum would rely on implicit signaling and message communication between layers, which is not transparent and inefficient. Now that the validators’ deposits are embedded in the execution layer, the participation process has become more transparent and predictable. Ordinary users may not directly perceive this change, but it enhances the robustness of the staking ecosystem and supports a clearer distinction between the functions of the execution layer and the consensus layer.

EIP - 7691

Data Block (Blob) Throughput Improvement

Increase the number of data blocks that each block can accommodate to enhance data availability and reduce the transaction costs of the Layer 2 (L2) network.

The proposal will increase the target number of data blocks per Ethereum block from 3 to 6, and the maximum number from 6 to 9, thereby providing more available space for Layer 2 rollup data submissions. Under the current limits introduced in Dencun (EIP - 4844), Ethereum allows a maximum of 6 data blocks per block, with a target of 3. Pectra raises this cap to 9 and adjusts the network’s incentive target to 6, effectively doubling the expected data block throughput.

If this adjustment is not made, the block space will become a bottleneck as aggregate demand increases. This change has a direct impact on users, helping to reduce fees on the second layer network and improve scalability.

EIP - 7840

Add a data block (Blob) scheduling mechanism in the execution layer configuration file

Introduce standardized block (Bolb) scheduling rules in the execution layer configuration file to support future expansion and upgrades.

Currently, various clients lack a unified approach when handling scheduled data block changes. This proposal will incorporate standardized data block scheduling rules into the execution layer configuration files, helping Ethereum prepare for future upgrades to expand data block functionalities. Without the implementation of this EIP, coordinating data block capacity upgrades will be chaotic and prone to errors. The proposal adds a shared structure for managing the evolution of data blocks at various fork stages, making future expansion work smoother. Although ordinary users will not see this change directly, it is an important infrastructure for Ethereum’s long-term expansion roadmap.

EIP - 7623

Increase calldata fees

Increase the cost of calling data to incentivize the use of data blocks (blob) for rollup data, enhancing network scalability.

The proposal increases the fees for calling data (i.e., unstructured data attached to transactions) with the aim of encouraging the adoption of aggregation solutions that use data blocks introduced by EIP - 4844 instead of storing calling data.

If this adjustment is not made, second-layer solutions like Optimism and Arbitrum may continue to use call data to publish data. The cost of using call data is higher and less efficient than data blocks. This EIP helps guide users from using call data to Ethereum’s new data block infrastructure, thereby enhancing network scalability and reducing costs. Although regular users will not see this change directly, they will benefit indirectly from lower second-layer network fees, most of the specific implementation mechanisms of which are invisible to users.

EIP - 7685

General Execution Layer Request Format

Create a standardized communication format from the execution layer to the consensus layer to enhance compatibility for future upgrades.

This proposal lays a better foundation for communication between the execution layer and the consensus layer by defining a universal request format.

Currently, the communication method from the execution layer to the consensus layer is limited and lacks standardization. Without implementing this proposal, future upgrades relying on more robust cross-layer data sharing will be difficult to implement. EIP - 7685 will not directly affect users, but it is a key driving factor for upgrades such as Verkle trees and further integration between the execution layer and the consensus layer in the future.

EIP - 7549

Remove the committee index from the attestation structure

Optimize the consensus data structure to reduce bandwidth usage and improve performance.

This proposal removes the committee index from the proof structure, thereby improving consensus efficiency. Currently, the proof structure carries separable additional data, which leads to its excessive size and increases optimization difficulty.

If this adjustment is not made, Ethereum consensus messages will continue to contain redundant information, thereby increasing bandwidth and storage requirements. This EIP restructures the proof structure to make it more streamlined. Although this change is deep within the protocol and will not directly affect end users, it helps improve the performance of the consensus layer and enhances its adaptability in the future.

EIP - 2935

Save historical block hash values in blockchain state

Expand access to old block hash values, supporting more advanced on-chain applications and trustless random number generation mechanisms.

Currently, Ethereum smart contracts can only access the hash values of the last 256 blocks, which limits the development of decentralized applications that rely on older but still recent on-chain data. This proposal directly stores the recent historical block hash values in the blockchain state, addressing this limitation.

If this EIP is not implemented, developers will have difficulty building various applications based on older chain data. By extending the storage time of hash values, this proposal opens up new possibilities for applications such as random number generation, proof systems, and trustless oracles. Although most users may not directly perceive this change, this improvement will bring significant benefits to developers working on complex on-chain logic.

EIP - 2537

BLS12 - 381 Curve Operation Precompiled

Add a high-efficiency precompiled contract for BLS signature verification, supporting stake and cross-chain application scenarios.

This proposal introduces a precompiled contract for BLS12-381 curve operations, addressing the challenge of efficiently verifying BLS (Boneh–Lynn–Shacham) signatures on-chain. Without this proposal, the gas consumption for cryptographic operations, especially those used in staking and cross-chain bridges, is excessively high, making them unfeasible for practical applications.

This EIP adds a native precompiled contract that significantly reduces the Gas costs of these validation operations. Although end users will not interact with it directly, it enhances the cryptographic infrastructure of Ethereum, supporting future interoperability and scalability features.

“EIP - 7702 has elevated the user experience of wallets to a new level. This is an important step in bringing blockchain technology to the masses.” — Daniel Lehrner, Senior Blockchain Protocol Engineer at Consensys said.

Promote Web3 User Experience Upgrade with EIP - 7702: Set Up Externally Owned Account (EOA) Account Code

Upgrading the core user experience is the most critical step in promoting the mainstream adoption of Web3. The transition to smart accounts signifies a fundamental transformation in how the network operates. In the past, all programmable functionalities stemmed from the smart contracts that users interacted with, but now users can leverage their programmable wallets to stand on the same starting line as professional developers in this field. The potential contained within smart accounts is immeasurable, opening up a brand new development space for developers and innovators.

EIP - 7702 allows externally owned accounts (EOA) to temporarily possess the functionality of a smart contract account in a single transaction by adding the contract_code field. This enables users to utilize advanced features such as transaction batching, Gas sponsorship, and smart verification logic without the need to deploy a contract separately. Unlike EIP - 4337, which relies on external infrastructure such as bundlers and paymasters, EIP - 7702 is directly integrated into the Ethereum core protocol. This integration not only lowers the adoption barrier but also enhances compatibility, allowing ordinary users to more easily utilize smart account functionalities.

For MetaMask users, this means that existing accounts can now also use the smart account feature. For example, with MetaMask’s Delegation Toolkit, users can authorize wallet permissions. Previously, these features were only available to smart contract accounts.

“Currently, the maximum effective balance of a validator can reach 2048 ETH. Moreover, if users wish to withdraw part of their effective balance, they can do so with the help of the EIP - 7002 message.” — Lucas Saldanha, Chief Protocol Engineer at Consensys said.

Unlocking Institutional Staking with EIP - 7251 and EIP - 7002: Enhanced Maximum Effective Balance and Execution Layer Validator Exit Mechanism

The staking feature is undergoing an enterprise-level upgrade.

EIP - 7251 and EIP - 7002 have made key improvements to the Ethereum staking architecture, making it more scalable, flexible, and easier for developers to use.

EIP - 7251 increases the maximum effective balance of each validator from 32 ETH to 2048 ETH, allowing large stakers to consolidate assets while reducing the overall number of validators. This move alleviates the burden on the consensus layer, supports future performance upgrades, and does not negatively impact smaller participants.

EIP - 7002 allows the validator exit process to be triggered through the execution layer, enabling smart contracts and applications to manage the lifecycle of validators on-chain. This is an important step towards programmable and automated stake processes.

“EIP - 7691 and EIP - 7623 will help improve throughput and alleviate worst-case scenarios by optimizing the propagation and processing of blocks.” — Ameziane (engineer focused on performance enhancement)

Leveraging EIP - 7691 and EIP - 7623 to Unlock Layer 2 (L2) Performance: Shifting from Call Data to Data Blocks to Enhance Aggregation Efficiency

The efficiency of Layer 2 networks (L2) will double overnight.

EIP - 7691 and EIP - 7623 collaborate to shift Ethereum aggregation from relying on call data to using data blocks, thereby enhancing scalability and alleviating pressure on the execution layer.

The data block was initially introduced during the March 2024 Cancun (Dencun) upgrade through EIP - 4844, providing a cheaper temporary data storage solution for rollups compared to calling data. However, due to familiarity with the tools and limitations of data block space, many rollups still continue to rely on calling data. To address this issue, EIP - 7623 raised the Gas cost of calling data from 16 per byte to 42, in order to curb its usage. However, to make the transition feasible, EIP - 7691 increased the data block capacity of Ethereum, raising the target number of each block from 3 to 6, and the maximum number from 6 to 9.

This collaborative adjustment makes block space more accessible while reducing the attractiveness of calling data, helping networks like Linea achieve more efficient scaling with lower costs and faster finality. Developers can now rely on the availability of block data when designing applications, enhancing user predictability and performance. This is part of the planned evolution: in the upcoming Fusaka upgrade, the target number of data blocks per block will reach 36, with a maximum of 52, achieving over 10 times improvement in efficiency, throughput, and cost. Fusaka is the next round of upgrades following the Pectra upgrade, which is expected to further expand block capacity, targeting a number of 32 and a maximum of 56.

The Future Development Path of Ethereum

The Pectra upgrade is an important step for Ethereum and its ecosystem applications towards a new journey. MetaMask plans to support the EIP - 7702 proposal, which will allow regular externally owned accounts (EOA) to transact without paying Gas fees, while also enabling social recovery and delegation features. ConsenSys’s staking service is also ready to implement the EIP - 7251 proposal, which allows the staking limit of validators to be raised to a maximum of 2048 ETH and reduces the operating costs of validators across the network.

Linea is actively preparing for early support of the EIP - 7691 proposal, allowing developers to utilize a higher data block (blob) capacity and enjoy lower rollup fees even before the mainnet officially goes live. In addition to technical preparations, Linea is gradually becoming the most compatible Layer 2 network (L2) within the Ethereum ecosystem and is expected to become Ethereum’s official second layer network. This means that Linea may adopt these upgrades ahead of the official implementation of protocol upgrades on the mainnet, representing that developers can leverage powerful features early and deliver these advantages to users at unprecedented speed.

Looking ahead, Ethereum’s next major upgrade — the Fusaka upgrade, is expected to achieve a complete danksharding mechanism through PeerDAS, which will significantly enhance the network’s speed and scalability. Combined with the foundation laid by the Pectra upgrade, these changes are part of Ethereum’s gradual evolution, driving it towards the grand goal of becoming a truly scalable and highly efficient global settlement layer.

“The future is bright, and in the coming months, transformations like PeerDAS are about to take place. We should see a significant enhancement in Ethereum’s rollup capabilities, further consolidating Ethereum’s position in the blockchain ecosystem.” — Gabriel Camargo Fukushima, Senior Blockchain Engineer II at Consensys.