In a recent meeting, Ethereum’s core developers announced their ambitious plan to roll out the much-anticipated Pectra upgrade by the first quarter of 2025. This step follows the successful implementation of the Dencun upgrade back in March 2023.
Pectra, considered as Ethereum’s next major update, will bring a wave of enhancements to the platform, primarily through the incorporation of the Ethereum Virtual Machine Object Format (EOF). This comprehensive upgrade comprises approximately 11 improvement proposals meticulously designed to elevate the functionality of the Ethereum Virtual Machine (EVM) code across both Layer 1 and Layer 2 frameworks.
One notable inclusion in the Pectra upgrade is the implementation of EIP-7251, colloquially known as the “increase max effective balance” proposal. This pivotal change seeks to empower individual validators by allowing them to stake more than the current cap of 32 ETH.
With the maximum effective validator balance set to rise to 2,048 ETH, validators will have the flexibility to manage fewer, yet more substantial stakes. This strategic adjustment holds the potential to streamline operations while mitigating complexities associated with validator management.
Furthermore, the developers have opted to replace the account abstraction proposal, EIP-3074, with a fresh proposal, EIP-7702, spearheaded by Ethereum co-founder Vitalik Buterin. EIP-7702 introduces a major transaction type that enables Ethereum account addresses to temporarily assume the role of smart contract wallets during transactions, with their original state seamlessly restored thereafter.
It is worth noting that the U.S. Securities and Exchange Commission (SEC) has given approval for major stock exchanges to proceed with listing Ether-based exchange-traded funds (ETFs). This approval opens the door for the trading of these funds later in 2024, potentially integrating the world’s second-largest cryptocurrency into the mainstream financial landscape.
This decision follows a period of uncertainty. Initially, industry insiders anticipated the SEC would reject the applications. However, in a surprising turn of events, the commission requested further details from the exchanges at the eleventh hour. This sudden request prompted a rush among ETF issuers such as VanEck and BlackRock, who are now eagerly awaiting final approval on their individual ETF registration statements.
