With the approval of the Ethereum exchange-traded fund (ETF), market sentiment surrounding Ethereum has surged to new highs.
Following the recent Dencun upgrade, Ethereum is set to introduce the Pectra upgrade in Q1 2025. This article highlights the key Ethereum Improvement Proposals (EIPs) that are expected to play a pivotal role in the long-term advancement of the Ethereum protocol.
Key EIPs in the Pectra Upgrade
Here is the list of the primary EIPs to be rolled out within the Pectra upgrade:
Read further for a more detailed breakdown of these proposals.
PeerDAS (EIP-7594)
The cornerstone of the Pectra upgrade is the EVM Object Format (EOF), which includes 11 EIPs introducing an “opt-in” container system for EVM code. Among these, PeerDAS has been a key focus in Ethereum’s All Core Devs Consensus (ACDC) calls and Vitalik Buterin’s writings.
PeerDAS simplifies data availability sampling by leveraging Ethereum’s existing peer-to-peer components. This extension of data availability scaling, building on EIP-4844, which implemented Proto-Danksharding, addresses the increasing need for efficient data handling, particularly in Layer 2 (L2) protocols.
MaxEB (EIP-7251)
EIP-7251, or “Increase Max Effective Balance (MaxEB),” aims to optimise Ethereum’s validator network by lifting the maximum staking amount per validator from 32 ETH to 2048 ETH. This enhancement reduces network redundancy and streamlines validator operations, contributing to Ethereum’s scalability.
Verkle Trees Transition (EIP-6800)
As part of Ethereum’s Verge roadmap, EIP-6800 introduces Verkle Trees to replace the current Merkle Tree structure. This transition is designed to enable “statelessness” in Ethereum, meaning nodes on the network can process and verify transactions without needing to store the full blockchain state. Verkle Trees uses polynomial commitment which allows the witness to have a fixed size regardless of the number of leaves that it proves, thus, reducing proof sizes and enhancing the efficiency of light nodes. With this, users will face lower hardware requirements, making it simpler to run light nodes and securely verify the blockchain. Achieving this milestone will significantly optimise Ethereum’s resource usage.
History Expiry (EIP-4444)
EIP-4444 addresses data management within the Ethereum network by obligating blockchain nodes to discard data older than one year, as the growing size of Ethereum’s blockchain data, which is facing challenges like high storage requirements and long synchronisation times. By proposing this, as discussed extensively in Ethereum’s ACDC calls, it reduces hardware requirements for validators, making node operation more accessible while preserving historical records through archive nodes and thus cost-effective.
EOA Account Code for Transaction (EIP-7702)
One of the key Pectra’s proposals, EIP-7702 adds a long-awaited smart contract functionality to Externally Owned Accounts (EOAs). EOAs are known as basic Ethereum accounts controlled by private keys, used to send and receive ETH or tokens and interact with smart contracts. However, unlike smart contracts, they are not programmable and cannot perform advanced operations with complex logic. A solution formulated in the EIP-7702 has been set to address this critical limitation.
Co-authored by Vitalik Buterin, EIP-7702 introduces new opcodes to set up a novel transaction type that allows an EOA to temporarily act as a smart contract during transactions, bringing more programmability for Ethereum addresses and wallets. In particular, it enables features such as transaction batching (grouping multiple transfer into a single operation), gas fee sponsorship (paying user fees by a third party), and privilege de-escalation (an option to reduce permissions in certain actions, for better security).
EIP-7702 also enhances security, quantum resistance, and compatibility with other proposals such as EIP-4337.
Inclusion Lists (EIP-7547)
In the inclusion list paradigm, a proposer provides an inclusion list, i.e. a list of transactions that they demand must be included in the block, unless the builder can fill a block completely with other transactions.
Endorsed by Vitalik Buterin in recent discussions, Inclusion Lists address issues related to Maximal Extractable Value (MEV). By mandating that block builders include specified transactions when proposing blocks, this EIP prevents builders from excluding certain transactions, ensuring a fairer block inclusion process.
A Path Forward for Ethereum?
Ethereum’s continuous upgrades reflect its commitment to scalability, efficiency, and decentralisation. The Pectra upgrade scheduled for Q1 2025, promises to bring major changes to this leading blockchain.
EIP-7594 improves data availability sampling for Layer 2 solutions, while EIP-7251 increases validator staking limits, streamlining operations. EIP-6800 and EIP-4444 reduce hardware requirements through Verkle Trees and data pruning, making node operation more accessible. Additionally, EIP-7702 enables EOAs to temporarily act as smart contract wallets, and EIP-7547 ensures fair transaction inclusion by addressing MEV issues. However, it remains to be seen whether these promises will hold.
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