The Pectra update has become the largest technical change in Ethereum since the network switched to the Proof-of-Stake algorithm. It was activated on May 7, 2025, and immediately combined 11 so—called EIP proposals to improve the protocol.

The update has passed a series of tests on the Ethereum test networks (Holesky, Sepolia and Hoodi), and now it is officially operational in the main one.

The developers call Pectra a preparatory stage for the next major updates, but it is already changing the rules of the game: it makes wallets smarter, validators more efficient, and L2 networks faster and cheaper.

Important terms to understand:

EIP (Ethereum Improvement Proposal)

A proposal to improve the Ethereum protocol. It is in the EIP format that changes to the network code are made. Each EIP is discussed, tested, and, if approved, is included in the network update.

Smart contracts

Programs that run inside the blockchain. They are executed automatically when the specified conditions occur. They are used to replace tokens, implement DeFi protocols, create NFT and other enterprises from the user environment.

Rollups and second-level networks (layer 2, L2)

Ethereum scaling technology. Generate off-chain transactions, which then allow data to be compressed into Ethereum. This reduces the load on the blockchain and makes operations faster and cheaper. The most famous examples are Arbitrum, Optimism, Base, zkSync.

Execution layer / Consensus layer

There are two levels of the Ethereum architecture: the execution layer is responsible for executing transactions and smart contracts, and the consensus layer is responsible for finalizing blocks and the order in which they are included in the chain.

Blob / Blob space

Temporary data storage for Layer 2 networks. It is used by rollups to publish transactions on the main Ethereum network, helps to reduce fees and speed up processing.

Stacking / Validator

Staking is the blocking of ETH to support the network. Validators are participants who confirm transactions and form blocks, receiving a reward for this.

EIP-7702. Account Abstraction and Smart Wallets

One of the main innovations of the Pectra update was the implementation of the account abstraction principle. This means that regular wallets (for example, Metamask) can now perform the functions of smart contracts.

In practice, this gives users more flexibility: applications get the opportunity to charge a commission not in ETH, but in another token, for example, in USDT. Previously, to exchange USDT, you had to have ETH on your balance to pay the commission, now you can perform the operation by paying the commission directly from the funds that you already have in your wallet.

It is also now possible to combine multiple actions into a single transaction (for example, approving, exchanging, and sending tokens). This saves time, reduces fees, and simplifies working with DeFi protocols.

In addition, the new features will allow you to implement more familiar scenarios: authorization via Face ID instead of a password, restoring access through trusted persons, and other functions that users of regular applications are used to. According to the developers, all this makes Web 3 closer to the mass user experience.

EIP-7251. Effective staking for large participants

Previously, on the Ethereum network, one validator could accept no more than 32 ETH in staking. Everything that exceeded this limit had to be divided into separate "slots" — in fact, new validators had to be created. This made life more difficult for both institutional players and those who launched their own nodes. With EIP-7251, the limit has increased to 2,048 ETH per validator.

Why is this necessary? For example, if a large platform wanted to execute a 3200 ETH staking, previously it needed to create 100 separate validators, each with its own set of keys, monitoring and infrastructure. Now you can do with just two. This reduces network load, simplifies maintenance, and reduces costs.

This may not seem so important to the average user, but in practice it increases productivity for large participants: exchanges, staking services, or DeFi platforms. It is easier for them to manage client funds, which means they can offer more favorable terms, connect new users faster, and experience fewer technical failures.

EIP-7691. Less commission for second-tier networks

This update directly concerns users of so-called rollups like Arbitrum and Optimism, which operate on top of Ethereum as a second-level network. It increases the volume of special "blobs" — temporary data stores that L2 networks use to publish their transactions to the main blockchain. Now there can be up to nine such blobs in one block instead of six.

What does this mean in practice? When you use cheap L2 networks, such as exchanging tokens in an Arbitrum, your transactions are eventually published on the main Ethereum network. The more efficiently this data is packaged, the cheaper the operations are. Increasing the limit on the number of blobs means more space for such transactions. Accordingly, the fees in L2 networks will become lower and more stable, especially during peak hours.

This is especially important as rollup users expand, and they are already increasingly becoming the main way to interact with Ethereum. Thanks to EIP-7691, projects will be able to scale faster, and users will be able to spend less on commissions with the same speed and reliability.

EIP7002. Withdrawal management via smart contracts

This update makes operations with validators more flexible and secure. Previously, to exit staking and withdraw funds, the participation of consensus-level keys was required, which must be constantly active and online. This created risks: if such a key was compromised, an attacker could influence the validator or withdraw funds.

With EIP-7002, it is now possible to manage the output of validators and the withdrawal of funds through the execution layer, the part of Ethereum that is responsible for regular transactions and smart contracts. Now, exiting stacking and withdrawing funds can be initiated through regular transactions or the built-in logic of a smart contract.

This is important for staking services and large players who need to manage dozens or hundreds of validators. Instead of relying on hot keys, they can set up a more secure and transparent exit procedure, for example, with delays, multi-signing, or other security measures.

This does not directly affect the retail user experience, but it increases the security of the entire system in the long run. This is especially true for decentralized services that build Ethereum-based products and manage validators on behalf of users.

EIP-6110. Quick launch of validators

Previously, after making a staking deposit, you had to wait up to 12 hours for the network to process the request through the consensus layer. The EIP-6110 brings this feature to the execution layer, and now the new validators are activated in just 13 minutes.

For large staking pools, this means the ability to more accurately manage liquidity flows: validators can be launched almost in real time, which is especially important when there is a sharp increase in interest in staking or during significant market movements. At the same time, the implementation of functions such as auto deposits and instant distribution of user funds is simplified.

Ordinary users may not notice this directly. But in the future, this creates the basis for services where funds are automatically launched into staking immediately after replenishment, and activation occurs almost without waiting. The improvement also reduces the mechanical burden on operators, which is important, for example, for large pools processing multiple applications in real time.

Internal improvements

The Pectra update includes a number of improvements that do not directly affect the user interface, but make the network faster and more stable.

EIP-2935 allows smart contracts to access hashes of recent blocks without accessing external services. This is important for oracles and inter-network solutions.

EIP-7623 makes storing data in a regular format more expensive in order to encourage projects to use the "blobs" mentioned above. This helps to unload the network and reduce fees.

EIP-2537 accelerates the processing of cryptographic operations (in particular, BLS signatures) that are used in staking. This reduces network load and can reduce costs for infrastructure providers.

EIP-7685, EIP-7549, and EIP-7840 make improvements to the Ethereum architecture: they optimize the work between layers, increase stability, and make commission calculations more predictable.