Original author: @the_smart_ape, @BasePumpFUN
Original translation: zhouzhou, BlockBeats
Editors note: Ethereums PECTRA upgrade includes 11 EIPs designed to increase network scalability, reduce costs, and improve user experience. Key improvements include smart wallets, Rollup optimization, staking enhancements, etc. These changes will drive Ethereums long-term development, but may put pressure on ETH prices in the short term due to improved network efficiency, ETH destruction, and reduced fees. Overall, PECTRA is a major technological advancement that enhances Ethereums competitiveness.
The following is the original content (for easier reading and understanding, the original content has been reorganized):
Ethereum’s PECTRA upgrade will be implemented in two days. This upgrade will significantly enhance network performance, but may put some pressure on $ETH in the short term.
Here’s what each EIP does and its potential impact: Every major upgrade of Ethereum includes a series of EIPs (Ethereum Improvement Proposals).
EIP is a proposal for improving the network. This PECTRA upgrade includes 11 proposals, more than any previous upgrade.
Let’s break down each of these proposals and what impact they might have on the technology and $ETH.
EIP-7702
This proposal transforms ordinary wallets into smart wallets. It brings new features such as transaction batching, gas fee payment, session keys, account recovery, and Passkey support.
Impact: This is an important step towards achieving true account abstraction and promoting mass adoption. It simplifies interaction with decentralized applications, supports gas-free transactions, packaged payments and other functions, making the user experience more user-friendly.
EIP-7691
The proposal increases the data capacity of Rollup by doubling the number of blobs per block (from 3 to 6, or from 6 to 9).
This is an upgrade to existing functionality that will make Rollup cheaper and more scalable.
Impact: The introduction of Blob has significantly reduced the Gas cost of the second-layer network.
This upgrade will further reduce L2 costs on this basis, but it will also reduce the Ethereum mainnet’s revenue and ETH destruction, which may bring the risk of rising ETH inflation and falling prices in the short term.
EIP-7251
Increase the upper limit of staking from 32 ETH to 2048 ETH. Impact: Reduce the number of validators, increase the risk of centralization, improve staking efficiency, and reduce network congestion overall
EIP-7623
If the Rollup uses regular calldata instead of blobs, higher fees will be charged.
The purpose of this proposal is to encourage Rollups to use cheaper and more temporary storage blobs, avoiding the use of permanently stored calldata.
Impact: There are very few Rollups that still use calldata. This proposal will force the remaining Rollups to switch to blobs, further reducing L1 revenue and potentially causing ETH inflation to rise.
EIP-7002
The proposal allows smart contracts to trigger withdrawals from validators. Currently, only validators can withdraw funds through their own keys. With this change, withdrawals can be managed directly by the execution layer.
Impact: Staking becomes programmable and trustless. This particularly benefits Liquid Staking providers like @LidoFinance, who will gain more control, automation, and transparency.
EIP-7685
The proposal standardizes and extends the communication between the Execution Layer (EL) and the Consensus Layer (CL), allowing contracts to send structured requests to the consensus layer.
Impact: While it won’t immediately change the user experience, it paves the way for powerful new infrastructure capabilities.
It helps automate staking, enables trustless re-staking, and supports more complex modular designs.
EIP-2537
This proposal provides Ethereum with a native and fast way to perform BLS signatures.
This makes cryptographic operations like zk proofs, bridging, and staking faster and cheaper.
Impact: Makes Rollup and zk applications faster and cheaper. This upgrade improves Ethereums technical capabilities, which may drive more adoption and help support the value of ETH in the long run.
EIP-2935
This proposal adds a system contract for retrieving historical block hashes (up to 8,192 blocks back), addressing the current 256-block limit of the BLOCKHASH opcode.
Impact: No direct impact on price, but this paves the way for more advanced use cases like cross-chain bridging and light clients, thus strengthening the ecosystem in the long term.
EIP-6110
The proposal allows validators’ deposits to be included directly in blocks, speeding up the staking process and reducing waiting times for new validators.
It encourages more participation in staking, potentially increasing the staked ratio, which would have a positive impact on $ETH.
The proposal optimizes the way validator signatures are authenticated by reducing message size. This reduces network load and improves the efficiency of generating zk proofs. It will improve scalability, make Ethereum more efficient, and attract more high-performance applications, which is good for $ETH. The proposal standardizes the way blobs are managed in execution layer configuration files. This improves Rollup fee estimation and upgrade planning.
Impact: Improves developer experience and ecosystem scalability, helping Ethereum grow more efficiently. PECTRA is a major upgrade. It brings important technical advances, making Ethereum more scalable, cost-efficient, and user-friendly.
But in the short term, it may put pressure on ETH prices as the network becomes more efficient, resulting in less ETH being burned and lower fees.
