Original Author: @the_smart_ape, @BasePumpFUN
Original Translation: zhouzhou, BlockBeats
Editor's Note: The Ethereum PECTRA upgrade includes 11 EIPs aimed at improving network scalability, reducing costs, and enhancing user experience. Key improvements include smart wallets, Rollup optimization, and enhanced staking features. These changes will drive Ethereum's long-term development but may put short-term pressure on $ETH prices due to network efficiency improvements, ETH burning, and reduced fees. Overall, PECTRA represents a significant technological advancement that enhances Ethereum's competitiveness.
The following is the original content (slightly edited for readability):
Ethereum's PECTRA upgrade will take place in two days. This upgrade will significantly enhance network performance but may put some short-term pressure on $ETH.
Here's the role and potential impact of each EIP: Every major Ethereum upgrade contains a series of EIPs (Ethereum Improvement Proposals).
EIPs are proposals for improving the network. This PECTRA upgrade contains 11 proposals, more than any previous upgrade.
Let's analyze these proposals and their potential impact on technology and $ETH.
[Images omitted]EIP-7702
This proposal transforms ordinary wallets into smart wallets. It introduces new features such as transaction batching, gas fee sponsorship, session keys, account recovery, and Passkey support.
Impact: This is a crucial step towards true account abstraction and driving mass adoption. It simplifies interaction with decentralized applications, supports gas-free transactions, batch payments, and makes the user experience more friendly.
EIP-7691
This proposal increases Rollup data capacity by doubling the number of blobs per block (from 3 to 6, or from 6 to 9).
It's an upgrade to existing functionality that makes Rollups cheaper and more scalable.
Impact: The introduction of blobs has already significantly reduced Layer 2 gas costs.
This upgrade will further reduce L2 costs but may also reduce Ethereum mainnet income and ETH burning, potentially risking ETH inflation and price decline in the short term.
EIP-7251
Raises staking limit from 32 ETH to 2048 ETH. Impact: Fewer validators, increased centralization risk, improved staking efficiency, overall network congestion reduction
EIP-7623
Rollups using regular calldata instead of blobs will need to pay higher fees.
The purpose of this proposal is to encourage Rollups to use cheaper, temporary blob storage instead of permanent calldata storage.
Impact: Currently, very few Rollups use calldata. This proposal will force remaining Rollups to switch to blobs, further reducing L1 income and potentially causing ETH inflation.
EIP-7002
This proposal allows smart contracts to trigger validator withdrawals. Currently, only validators can withdraw using their own keys. This change allows exit operations to be directly managed by the execution layer.
Impact: Staking becomes programmable and trustless. This is particularly beneficial for liquid staking providers like @LidoFinance, who will gain more control, automation, and transparency.
EIP-7685
This proposal standardizes and extends communication between the execution layer (EL) and consensus layer (CL), allowing contracts to send structured requests to the consensus layer.
Impact: While not immediately changing user experience, it paves the way for powerful new infrastructure capabilities. It helps automate staking, enables trustless restaking, and supports more complex modular designs.
EIP-2537
This proposal provides Ethereum with a native, fast way to execute BLS signatures.
This makes cryptographic operations like zk proofs, bridging, and staking faster and more cost-effective.
Impact: Makes Rollups and zk applications faster and cheaper. This upgrade enhances Ethereum's technical capabilities and may drive more adoption, potentially supporting $ETH's value long-term.
EIP-2935
This proposal adds a system contract for retrieving historical block hashes (up to 8,192 blocks), addressing the current BLOCKHASH opcode's 256-block limitation.
Impact: No direct price impact, but it paves the way for more advanced use cases like cross-chain bridging and light clients, thus enhancing the ecosystem long-term.
EIP-6110
This proposal allows validator deposits to be directly included in blocks, accelerating the staking process and reducing waiting time for new validators.
It encourages more staking participation and may positively impact $ETH.
The proposal optimizes validator signature authentication by reducing message size. This reduces network load and improves zk proof generation efficiency. It will enhance scalability, making Ethereum more efficient and attracting more high-performance applications, which is beneficial for $ETH. The proposal standardizes blob management in execution layer profiles, improving Rollup fee estimation and upgrade planning.
Impact: Enhances developer experience and ecosystem scalability, helping Ethereum grow more efficiently. PECTRA is a major upgrade. It brings important technological advances, making Ethereum more scalable, cost-effective, and user-friendly.
However, in the short term, it may put pressure on $ETH prices as the network becomes more efficient, leading to reduced $ETH burning and lower fees.
