Ethereum’s Pectra upgrade, which launched on May 7, 2025, incorporates three key proposals: EIP-7702 enables accounts to function like smart contracts, EIP-7251 allows larger staking limits, and EIP-7691 boosts layer-2 scalability. Developers anticipate enhanced user experiences but express concerns about new risks. Institutional staking is made easier, and improvements aim to enhance Ethereum’s overall efficiency.
In a significant leap for the Ethereum network, the anticipated Pectra upgrade officially launched on its mainnet on May 7, 2025, around 10:00 am UTC, marking the beginning of epoch 364032. This upgrade incorporates three Ethereum Improvement Proposals, specifically EIP-7702, EIP-7251, and EIP-7691, each designed to enhance the functionality and efficiency of the network.
EIP-7702 introduces a game-changing feature allowing externally owned accounts to operate like smart contracts, thus enabling the coverage of gas fees and transactions in tokens other than Ether (ETH). Following that, EIP-7251 raises the validator staking cap from 32 ETH to an impressive 2,048 ETH, significantly streamlining operations for those with large stakes. Meanwhile, EIP-7691 focuses on improving scalability by boosting the amount of data blobs processed per block, leading to potential reductions in transaction costs.
Sergej Kunz, co-founder of 1inch, a popular Ethereum DEX aggregator, praised Pectra for its introduction of “smart account” functionalities and its capability to significantly improve Ethereum’s scalability via layer-2 solutions. This could open doors for more efficient processing and proof of concept.
Developers and users alike are excited about the advantages presented by EIP-7702. 0xAw, who heads development at Base Ethereum’s DEX, explained the issues with account abstraction before this proposal—namely the need for complicated wallet switches. He points out that this new development simplifies user experiences by eliminating certain approval flows and automating actions on behalf of users.
While acknowledging it won’t magically lead to universal adoption, he affirms that it reduces barriers for newcomers. The changes are intended to offer a streamlined user experience resembling Web2, with complex systems hidden from everyday interactions.
Moreover, 1inch’s Kunz is optimistic about the upgrade leading to native gasless transactions and simplifying user interfaces. Ivo Georgiev, CEO of Ambire, expressed that users will no longer need to approve every ERC-20 interaction, eliminating frequent wallet prompts when using platforms like OpenSea, thereby enhancing the overall user experience.
However, not everything about the change is straightforward. 0xAw highlighted a new risk where users might unwittingly sign dangerous transactions, which could potentially lead to significant security issues. Mike Tiutin from PureFi echoed these concerns, remarking that users have previously shown vulnerability in signing what appeared to be benign messages on cloned DApps.
Contrarily, Georgiev remained hopeful, stressing that the industry has evolved to create secure contracts, especially ones under the minimal scope of EIP-7702 delegation, thus not anticipating a tangible risk increase.
Looking toward institutional engagement, Artemiy Parshakov, from Ethereum staking service P2P.org, noted that EIP-7002 simplifies institutional staking, making it less risky and more efficient. Where exit processes previously hinged on a signed message from staking providers, the wait time is now reduced from 13 hours to around just 13 minutes, enabling more agile transactional capabilities for stakers.
Another significant upgrade is EIP-6110, which streamlines the way new validator deposits are executed on the blockchain, linking these directly to the consensus layer. Previously, consensus clients had to wait on block proposers to confirm data but, with this upgrade, new validator data can be included instantly.
While these changes stand to revolutionise Ethereum, Parshakov also stressed concern over the possibility of client bugs plaguing the system.
Given the network’s complicated nature, closely monitoring these developments as they unfold is crucial, and stakeholders are hopeful for smooth sailing ahead as Ethereum enters this new era.
