Ethereum Set for Major Pectra Upgrade Boosting Wallets and Staking

Ethereum developers are preparing for the Pectra upgrade, the most significant update since the Merge in 2022. Scheduled for release this Wednesday, Pectra combines updates to both the consensus and execution layers of the blockchain, aiming to improve user experience, staking, and wallet functionality.

Pectra, named after “Prague” and “Electra,” introduces 11 Ethereum Improvement Proposals (EIPs). Key among them is EIP-7702, which enables smart contract capabilities for wallets, pushing Ethereum closer to "account abstraction." This change allows users to pay gas fees in tokens other than ether (ETH), unlocking greater flexibility for developers and end-users.

Another crucial update, EIP-7251, raises the maximum ETH stake per validator from 32 to 2,048. This streamlines the staking process by allowing validators to consolidate multiple stakes under a single node, reducing setup time and hardware demands.

While initially slated for a 2024 release, the Pectra upgrade faced delays due to the technical complexity of its proposals. After encountering bugs in two separate testnet launches, developers conducted a third round of testing before finalizing the upgrade for early 2025.

Ethereum Foundation’s Parithosh Jayanthi confirmed the upcoming launch, reminding node operators to update their systems ahead of the fork.

Despite the network advancements, ETH has declined nearly 42% over the past year, underperforming the broader CoinDesk 20 Index, which saw a modest 1.5% dip. The Pectra upgrade may serve as a catalyst for renewed interest in Ethereum by enhancing usability and infrastructure efficiency.

This upgrade marks a critical step in Ethereum's long-term roadmap as it evolves into a more scalable and accessible platform for decentralized applications.