Ethereum Pectra

The Ethereum Pectra upgrade, a combination of the "Prague" (execution layer) and "Electra" (consensus layer) updates, is a significant advancement for the network, focusing on enhanced scalability, improved security, and a revolutionary user experience. It integrates a total of 11 Ethereum Improvement Proposals (EIPs), with several key ones driving its impact.

Here's a breakdown of the technical details of some prominent EIPs included in Pectra:

Key EIPs and Their Technical Implications:

1. EIP-7702: Set EOA Account Code

   • Problem it Solves: Traditionally, Ethereum has two account types: Externally Owned Accounts (EOAs), controlled by a private key, and Smart Contract Accounts (SCAs), controlled by their code logic. EOAs are simple but lack programmability (e.g., batching transactions, sponsored gas), while SCAs offer features but require users to migrate their identity to a new address. EIP-7702 bridges this gap.

   • Mechanism: This EIP introduces a new transaction type (0x04) that allows an EOA to temporarily attach executable code to a single transaction. This means an EOA can behave like a smart contract account during that specific transaction's execution. The EOA owner signs a special authorization message, which includes details like chain_id, nonce, delegation_address, and signature components. The protocol records this delegation at the network level.

   • Technical Impact:

     • Transaction Batching: Enables combining multiple operations (e.g., approve token and then swap) into a single atomic transaction, reducing gas costs and improving user experience.

     • Gas Sponsorship/Abstraction: Allows third parties (like dApps or "paymasters") to cover gas fees for users, or for users to pay fees in ERC-20 tokens instead of native ETH.

     • Permission Management: Users can create sub-keys with limited permissions (e.g., a key only able to interact with a specific dApp, or a key with daily spending limits).

     • Protocol-Level Integration: Unlike application-level solutions, EIP-7702's integration at the protocol layer is more gas-efficient, as it avoids the need for per-user contract deployments.

   • Limitations: The EOA's private key remains paramount and can always override any delegation. Delegations are temporary and can be overwritten. Chain-specific authorizations can pose challenges for multi-chain applications.

2. EIP-7251: Increase the MAX_EFFECTIVE_BALANCE

• Problem it Solves: The previous maximum effective balance for an Ethereum validator was capped at 32 ETH. This led to large stakers running numerous 32 ETH validators, increasing the overall validator count and network overhead (e.g., P2P messages, BLS signature aggregation, BeaconState memory footprint).

• Mechanism: This EIP raises the maximum effective balance per validator from 32 ETH to 2,048 ETH. The minimum staking requirement remains 32 ETH. It also introduces a "consolidation request" mechanism, defined as an EIP-7685 request with type 0x02. This allows validators to merge multiple smaller validators into a larger one without going through the exit and activation queues.

• Technical Impact:

  • Reduced Validator Set Size: Allows large stakers to consolidate their funds under fewer validators, significantly reducing the total number of active validators.

  • Improved Network Efficiency: Decreases the computational and communication load on the network due to fewer validators.

  • Flexible Staking: Enables solo stakers to compound their rewards more effectively and manage their stake in more flexible increments.

  • Execution Layer Partial Withdrawals: Integrates functionality from EIP-7002, allowing validators to trigger partial withdrawals from the execution layer, enabling more programmable staking workflows.

1. EIP-7691: Blob Throughput Increase

   • Problem it Solves: Building on the Dencun upgrade's EIP-4844 (Proto-Danksharding) which introduced "blobs" for Layer 2 rollup data, there was a need to further increase the data availability for these rollups to scale and reduce transaction costs.

   • Mechanism: This EIP increases Ethereum's target blob count per block from 3 to 6, and raises the maximum from 6 to 9. This effectively doubles the expected blob throughput.

   • Technical Impact:

     • Lower Layer 2 Transaction Costs: More available blob space directly translates to lower data costs for rollups, which in turn reduces transaction fees for users on Layer 2 networks.

     • Enhanced Scalability: Improves the overall data availability layer of Ethereum, making it more capable of supporting the scaling needs of Layer 2 solutions.

1. EIP-6110: Supply Validator Deposits On-Chain

• Problem it Solves: Previously, validator deposits had to be relayed through the consensus layer, adding complexity and potential delays to the onboarding process.

• Mechanism: This EIP moves validator deposits directly to the execution layer.

• Technical Impact:

  • Simpler Validator Onboarding: Streamlines the process for new validators to join the network, making it more transparent and predictable.

  • Cleaner EL-CL Separation: Further improves the separation of concerns between the execution and consensus layers.

1. EIP-7002: Execution Layer Triggerable Exits

   • Problem it Solves: Validators previously relied solely on consensus-side mechanisms to exit the network, limiting programmatic control over their staking operations.

   • Mechanism: This EIP allows validators to trigger their own exits from the network via the execution layer.

   • Technical Impact:

     • Increased Staking Flexibility: Enables more advanced use cases for staking, such as smart contract-based staking managers or automated exit strategies.

     • Improved Composability: Lays the groundwork for more sophisticated validator services and integrations with other DeFi protocols.

1. EIP-7547: Inclusion Lists (Though the status is "Stagnant" as per some sources, it was under consideration for Pectra to enhance censorship resistance.)

• Potential Goal: To allow proposers to specify a set of transactions that must be included in subsequent blocks, improving censorship resistance.

• Mechanism (Proposed): A proposer for slot N could specify a list of transactions that must be included in the block produced for slot N+1. This would be broadcast as an "inclusion list" sidecar.

• Potential Technical Impact: Empowering proposers to exert some control over transaction inclusion, mitigating potential censorship by block builders.

Pectra represents a holistic approach to enhancing Ethereum, addressing both the core infrastructure of the consensus layer and the user-facing experience on the execution layer. The technical changes are designed to make Ethereum more robust, efficient, and accessible for a wider range of users and applications.