Despite major pricing challenges, Ethereum (ETH) remains resilient, with critical developments continuing in its ecosystem. Among the expected improvements is the upcoming Pectra update, which is expected to be released in mid-March.
This update is called the biggest in Ethereum history, marked by the introduction of several Ethereum Improvement Suggestions (EIPs) that promise to transform network operations and user experience.
How Ethereum Validators Could Win Even Higher Rewards
Anthony Sassano, an independent Ethereum educator and angel investor, has been vocal about the potential impact of the Pectra Update, emphasizing it that this update will greatly improve the transaction flow of Ethereum users through the removal of account, especially driven by EIP-7702.
Instead of navigating the cumbersome process of agree-then-exchange, users will be able to execute these actions in a single transaction, greatly simplifying the user experience.
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Another special proposal, EIP-7251, is expected to increase the maximum effective balance that testers can earn from 32 ETH to an impressive 2048 ETH per validator.
This change means that testers no longer have to wait to collect 32 ETH before they can start earning rewards. The upgrade will also allow consolidating verifiers managed by a single node operator, thus reducing some of the network's operational burden.
Key EIPs to optimize network performance
EIP-7691 addresses scalability concerns by increasing blob throughput. Blobs have been near capacity for months, which has hindered it scalability of rollups and layer 2 solutions while increasing transaction fees for users.
With the upcoming increase from 3/6 to 6/9 blobs, the network is expected to accept more transactions, leading to lower fees and better performance for users.
The Pectra Update also includes EIP-7623, which raises the cost of using call data for rollups. This step encourages rollups to use only blobs, optimizing the allocation of resources on the network.
In addition, EIP-7002 will introduce a new mechanism that allows testers to opt out during the execution phase. This innovation aims to create complete trust stagnant poolsreducing reliance on intermediaries for processing withdrawals and prize distributions.
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EIP-7685 strengthens communication between execution and Ethereum consensus layers, allowing smart contracts to interact directly with the stake level. This development could reduce the need for intermediaries, such as trusted oracles, thus improving efficiency.
In addition, EIP-2537 will make cryptographic processes on the network more efficient, especially beneficial for zero-knowledge operations (zk) that are critical for scalability and privacy.
In addition to these obvious tips, the Pectra update includes four other EIPs designed to streamline network activity. These include improvements such as serving historical block hashes from the state and supporting on-chain verification investments, which will further improve Ethereum's infrastructure.
Despite these expected updates, the price of Ethereum continues to hover around $3,200 and $3,300, showing that there is a certain lack of capital that could increase its bring on the price of the altcoin.
Featured image from DALL-E, chart from TradingView.com
