Ethereum just rolled out one of its biggest upgrades since the Merge - and it’s a pretty big deal for everyone using the network.
2025-05-07 - 3 min read
Ethereum Pectra: The Upgrade for the People Ethereum just rolled out one of its biggest upgrades since the Merge - and it’s a pretty big deal for everyone using the network. Today at epoch 364032 (10:05 UTC) Ethereum launched the Pectra upgrade, combining two major upgrades - Prague for transactions and smart contracts, and Electra for how the network stays secure. The update is already being called a “glow-up” for Ethereum as it isn’t just about backend tweaks but finally prioritize usability for mass adoption to make Ethereum smoother, smarter, and easier to use. Let’s see what’s new, why it matters, and how we expect this to push Ethereum into its next chapter. Prague + Electra = Pectra If the Merge was about changing the engine and switching from Proof of Work to Proof of Stake, Pectra is more about improving the ride. It’s focused on making Ethereum feel more intuitive and user-friendly. Pectra brings together updates from two different areas of Ethereum’s infrastructure - Prague (the “execution layer” where transactions happen) and Electra (the “consensus layer” where validators do their job). After plenty of testing on networks like Holesky, Sepolia, and the newer Hoodi, it’s finally live on mainnet. The upgrade bundles 11 new Ethereum Improvement Proposals (EIPs) covering better wallet UX to cheaper transactions and a smoother staking process: 1. Smarter Wallets One of the biggest highlights is EIP-7702 , which upgrades regular wallets (EOAs) into smarter, more flexible tools. What does this mean? Your standard Ethereum wallet just got a major power-up. Here’s what’s new: Single transaction without going through multiple confirmations. Create rules like “Only send if X happens.” Apps can now natively cover gas fees for new users Pay gas in any token Basically, it makes wallets act more like smart contracts - without needing to switch to a new address. That’s a game-changer for users and developers. Wallets like Ambire are already testing this out on public networks. 2.Cheaper Transactions Ethereum has been working hard to bring down costs especially for people using Layer 2s like Arbitrum or Optimism. Pectra keeps that momentum going. Here’s what’s new: EIP-7691 doubles the number of data “blobs” that Layer 2s can post to Ethereum - from 3 per block to 6 and up to 9 in some cases. EIP-7840 improves how those blobs are handled behind the scenes, keeping things fast and efficient. EIP-7623 makes data-heavy users pay more, which helps prevent network spam and results in cheaper fees. 3. Easier, More Flexible Staking ETH stakers and validators will notice immediate improvements thanks to these three updates: EIP-7251 increases the max stake per validator from 32 ETH to 2,048 ETH to allow for rewards to be compounded more effectively causing less cluttering on the network from thousands of small validators EIP-6110 shortens the wait time to around 45 minutes between staking ETH and going live as a validator - if there’s no queue. EIP-7002 adds more control allowing both validator key and withdrawal key to trigger an exit - which improves staking setups like Lido. 4. Better Developers and Nodes Experience Pectra also includes several under-the-hood improvements for developers and node operators: EIP-2537 adds new cryptographic tools to Ethereum, making zero-knowledge (ZK) technology faster and more efficient. It’s like handing a calculator to someone solving calculus with a stick in the dirt - zk-based privacy and scalability solutions will benefit significantly. EIP-2935 allows nodes to access historical block hashes more efficiently, enabling light clients (small, resource-efficient nodes) to become more useful. This is a step toward “stateless” Ethereum, where nodes don’t need to store all historical data indefinitely. EIP-7549 group validators’ signatures instead of having validators signing every detail individually, reducing their workload by 60x while maintaining security. EIP-7685 creates a direct communication channel between Ethereum’s execution and consensus layers, making future upgrades easier to implement. What’s Next? Pectra is a clear sign Ethereum is maturing and is back to usability, moving past protocol-level changes to focus on mass adoption. With smarter wallets, faster Layer 2s, more flexible staking, and a stronger-than-ever decentralized infrastructure, Ethereum is setting the stage for Verkle Trees (using vector commitments to allow for much more efficient proofs and updates) and Stateless Clients that could help Ethereum scale even further without sacrificing on its core value: decentralization. About Exa Group Exa Group is a research and consulting boutique firm focused on researching and building best practices to ensure DAOs’ longevity and sustainable token economies. Our team combines vast competencies in Web3 Infrastructures, Financial Markets, Social Economics and Asset Management. For enquiries send an email to research@exagroup.xyz or follow us on Twitter and LinkedIn .