This is why Ethereum’s Pectra update is a game-changer

Following the successful Denkun upgrade that reduced transaction costs, the Ethereum blockchain is poised to take another significant leap forward with the anticipated Pectra upgrade.

In the year The Pectra update, scheduled for release between late 2024 and early 2025, focuses on Ethereum Improvement Proposal (EIP) 3074 and EIP 2935. These critical updates are meant to change how users interact with Ethereum wallets.

The Ethereum community discusses the pros and cons of Pectra.

In a recent bi-weekly call, Ethereum developers announced that the EIP 3074 will be the centerpiece of the Pectra update. Tim Beiko, the main developer of Ethereum, confirmed the inclusion in a post on April 11.

This update introduces a number of modern contract functions to ordinary Ethereum wallets, greatly enhancing the user experience.

Read more: Ethereum EIPs: What are they? How are they implemented?

According to Domotti, a researcher at the Ethereum Foundation, EIP 3074 introduces a new social recovery tool. This tool requires users to transfer property ownership to a requester's contract by first digitally signing it. This agreement facilitates future transactions and allows users to retrieve 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 make transactions. The party behind the notification contract may cover these costs in advance. This feature could greatly expand Ethereum's appeal by lowering the barriers to entry for new users.

In addition, EIP 3074 allows the number of transactions. Users can approve multiple transactions at once, streamlining processes and increasing efficiency. On Chain, analyst Hitesh Malviya praised this update for its impact on Web3 games.

“It will be a game changer for Web 3 games, you can sign your session once and then play the entire game without having to worry about interacting with smart contracts,” Malviya said.

Uniswap developer Hayden Adams echoed this enthusiasm, describing the inclusion of EIP 3074 as a “major improvement to the Ethereum UX.” However, the amendment has raised concerns.

“Since EIP 3074, it's now possible to completely wipe out an address (all tokens, all NFTs, all DeFi slots…) with one bad signature,” said Defilama co-founder 0xngmi.

Read more: 9 Crypto Wallet Security Tips to Protect Your Assets

The name “Pektra” is a combination of “Prague” and “Electra” modification, which affects the performance and consensus of the blockchain. Similarly, “Denkun” is a combination of the words “Deneb” and “Cancun”.