This Is Why Ethereum’s Pectra Update Is a Game-Changer

Ethereum’s blockchain is set for another significant leap with the anticipated Pectra upgrade, following the successful Dencun upgrade that reduced transaction costs.

Slated for release between late 2024 and early 2025, the Pectra upgrade focuses on Ethereum Improvement Proposal (EIP) 3074 and EIP 2935. These vital modifications aim to transform how users interact with Ethereum wallets.

Ethereum Community Discusses Pros and Cons of Pectra

During a recent bi-weekly call, Ethereum developers announced that EIP 3074 would be central to the Pectra upgrade. Tim Beiko, a core Ethereum developer, confirmed its inclusion with a post on April 11.

This upgrade will introduce several smart contract functionalities to ordinary Ethereum wallets, significantly enhancing the user experience.

Read more: Ethereum EIPs: What Are They? How Are They Implemented?

According to Domothy, a researcher at the Ethereum Foundation, EIP 3074 will introduce a novel social recovery tool. This tool requires users to initially transfer asset ownership to an invoker contract via a digital signature. This contract will facilitate future transactions and enable users to reclaim their assets if they lose or forget their seed phrase.

Additionally, EIP 3074 eliminates the need for users to have Ethereum in their wallets to execute transactions. The entity behind the invoker contract can cover these costs upfront. This feature could significantly expand Ethereum’s appeal by lowering the barriers to entry for new users.

Moreover, EIP 3074 allows the batching of transactions. Users can approve multiple transactions at once, streamlining processes and enhancing efficiency. On-chain analyst Hitesh Malviya praises this upgrade for its potential impact on Web3 gaming.

“It’s going to be a game-changer for web3 gaming, where you can sign your session once and then play the whole game without worrying about interacting with smart contracts,” Malviya stated.

Uniswap developer Hayden Adams echoes this enthusiasm, describing the inclusion of EIP 3074 as a “monumental upgrade to Ethereum UX.” However, the upgrade has also raised concerns.

“Downside of EIP 3074 is that now it’ll be possible to fully drain an address (all tokens, all NFTs, all defi positions…) with only one bad signature,” DefiLlama co-founder 0xngmi said.

Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets

The name “Pectra” is an amalgamation of the “Prague” and “Electra” upgrades, impacting the execution and consensus layers of the blockchain, respectively. Similarly, “Dencun” is an amalgamation of the words “Deneb” and “Cancun.”