Ethereum (ETH): Two Major Pectra Upgrades Are on the Horizon for 2025

Ethereum (ETH) is known for continuous development, which is usually expressed in an upgrade every year. So many improvements are planned for the coming year that Ethereum will probably need two upgrades.

Ethereum (ETH) is adapting to new technological requirements step by step. This year, the Dencun upgrade strengthened the role of Layer 2 solutions and thus noticeably reduced transaction fees. The developers at Ethereum are now already planning for 2025 and at their last online meeting tended to implement two upgrades in the coming year.

Under the project name Pectra, Ethereum users can currently look forward to the following progress:

– Pectra Part One could go live as early as February 2025 and should then have a practical impact on Ethereum wallets through EIP-7702. These digital wallets may then be temporarily assigned rights to execute smart contracts, making them more user-friendly. In Ethereum Improvement Proposal (EIP) 7702, Ethereum inventor Vitalik Buterin personally submitted code and received high praise from experts on X. Buterin is said to have needed just 22 minutes to program a solution to EIP-7702, something that other developers struggled with.

– Pectra Part Two is planned for the end of 2024 and will focus on the Ethereum Virtual Machine (EVM). This module has become a standard for decentralized finance (DeFi) in the crypto industry, but is getting on in years. Various smaller proposals have been collected under the collective title EOF (EVM Object Format) which are intended to make the Ethereum Virtual Machine more accessible to developers of DApps and smart contracts in a kind of version 2.

The advantage of the proposal to split the Pectra upgrade on Ethereum into two chapters is that you can concentrate entirely on one aspect of the further development at a time and therefore do not have to examine security aspects from all sides at the same time.

Conclusion: Ethereum is working on its status as a decentralized superhub

With the debut of Ethereum ETFs in the US this summer, it became clear that ETH lacks a catchy slogan to promote itself outside of the tech and crypto scene. Suggestions such as “decentralized app store” have not caught on, although they focus on the almost endless application possibilities that are open in the Ethereum ecosystem.

Bitcoin, nicknamed “digital gold,” has already found its narrative as a store of value. Ethereum, the number two among global cryptocurrencies, is aiming for important improvements in the engine room with Pectra. Splitting the Ethereum Upgrade 2025 into two stages makes sense because it means that the release date for at least part one will be approaching more quickly. It remains to be seen whether the Pectra upgrade will also have a direct impact on ETH’s price.

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(Featured image by elifxlite via Pixabay)

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