Pectra Upgrade: The Reshaping Journey of the Ethereum Ecosystem

The Ethereum Pectra upgrade is scheduled to be deployed on the mainnet on April 8, 2024. This upgrade integrates the Prague and Electra updates, aiming to optimize the execution layer and consensus layer of Ethereum. The Pectra fork is a significant upgrade for the Ethereum network, with the goal of enhancing the ETH staking experience, improving the scalability of the second layer (L2), and increasing network capacity by introducing 11 Ethereum Improvement Proposals.

The Pectra upgrade will be implemented in two phases:

Phase One ( Mid-March 2025 ):

• The 2-layer Blob capacity is doubled, with the number of Blobs in each block increasing from 3 to 6.
• Account abstraction allows the use of stablecoins to pay for Gas fees.
• Increase the validator staking limit from 32 Ether to 2,048 Ether

Phase two ( by the end of 2025 or early 2026 ):

• Implement Verkle trees, replacing Merkle-Patricia with a more efficient data structure.
• Peer Data Availability Sampling (, improving scalability

![From "King of Shanzhai" to "Institutional Paradise"? Can the Pectra upgrade reshape the Ethereum ecosystem?])https://img-cdn.gateio.im/webp-social/moments-cafe9b7b3a16384111bb1e114794a229.webp(

Major Improvement Proposals for Pectra Upgrade

1. Account Abstraction: Allows external accounts to execute certain smart contract functionalities, making account operations more flexible.

2. Validator staking increase: Maximum staking balance increased from 32 Ether to 2048 Ether

3. Withdrawal Improvements: Simplify the withdrawal process and enhance network flexibility.

4. Validator activation delay optimization: reduced from about 9 hours to about 13 minutes

5. Block Expansion: Increase block capacity by 50%, enhancing transaction throughput.

6. Increase MEV transparency: Provide more information related to MEV

7. Gas Fee Adjustment: Optimize the network fee mechanism to make transaction fees more reasonable.

8. Governance Mechanism Optimization: Enhance decentralized governance, improve transparency and efficiency.

9. Validator Penalty Mechanism Optimization: Ensure Validator Behavior Aligns with Network Interests

10. Smart Contract Performance Optimization: Improve Execution Efficiency, Reduce Gas Consumption

11. Improved Cross-Chain Compatibility: Enhanced Interoperability with Other Blockchains

![From "King of Shanzhai" to "Institutional Paradise"? Can the Pectra upgrade reshape the Ethereum ecosystem?])https://img-cdn.gateio.im/webp-social/moments-00c9b925176d533685ca2de35524bc24.webp(

The Impact of Pectra on the Ethereum Ecosystem

1. DApps development is more convenient, and the user experience is friendlier.

2. The staking threshold for validators has been raised, which may deepen the degree of centralization.

3. Significant improvement in network performance and transaction processing capability

4. Enhanced cross-chain interoperability, the ecosystem is more open

5. Improved MEV transparency, ensuring fairness in transactions.

6. Governance mechanism optimization, community decision-making is more efficient.

7. The improvement in smart contract execution efficiency is beneficial for the development of DeFi.

![From "King of Shanzhai" to "Institutional Paradise"? Can the Pectra upgrade reshape the Ethereum ecosystem])https://img-cdn.gateio.im/webp-social/moments-10b21433ce7ab7ccd0080dad94ed2a2f.webp(

However, Ethereum still faces some challenges:

• The L2 "parasitic" effect leads to a decrease in mainnet transaction fees.
• The development path choice between fragmented expansion vs single high throughput network
• The balance between decentralization and attracting institutional capital

The Pectra upgrade will undoubtedly bring multiple improvements to Ethereum, but its long-term value and market position still need time to be validated. Whether Ethereum can redefine its value proposition and find a new narrative direction through this upgrade will be a key factor in determining its future development.

![From "King of Shanzhai" to "Institutional Paradise"? Can Pectra's upgrade reshape the Ethereum ecosystem?])https://img-cdn.gateio.im/webp-social/moments-9a8e2741edefc8af47897698e0d5d009.webp(