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Despite considerable price challenges, Ethereum (ETH) remains resilient, with vital developments continuing to take place in its ecosystem. Among the most anticipated advancements is the upcoming PECTRA upgrade, which is expected to be deployed in mid-March.
This upgrade is being hailed as the largest in Ethereum history, marked by the introduction of numerous Ethereum Improvement of proposals (EIPS) that promise to transform network functionality and user experience.
How Ethereum Validators Could Earn Even Higher Rewards
Anthony Sassano, an independent Ethereum educator and angel investor, expressed the potential impact of the PECTRA upgrade, emphasize That this upgrade will significantly improve Ethereum user transaction flow through account abstraction, primarily driven by EIP-7702.
Instead of navigating the cumbersome approval process, users will be able to complete these actions in a single transaction, significantly simplifying the user experience.
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Another notable proposal, EIP-7251, is expected to increase the effective maximum balance on which validators can earn rewards from 32 Eth at an impressive 2048 ETH per validator.
This change means that validators will no longer need to wait to accumulate 32 ETH before they can start earning staking rewards. The upgrade will also enable the consolidation of validators managed by a single node operator, thereby alleviating some of the operational burden on the network.
Key EIPS to optimize network performance
EIP-7691 addresses scalability issues by increasing blob throughput. The blobs have been close to capacity for months, which has forced the scalability Rollups and layer 2 solutions while increasing transaction fees for users.
With the upcoming increase from 3/6 to 6/9 blobs, the network is expected to accommodate more transactions, leading to lower fees and improved performance for users.
The PECTRA upgrade also introduces EIP-7623, which increases the cost of using CallData for Rollups. This measure encourages Rollups to exclusively use blobs, optimizing the allocation of resources on the network.
Additionally, EIP-7002 will introduce a new mechanism that facilitates validator withdrawals at the execution layer. This innovation aims to create fully without trust Staking Poolsminimize reliance on intermediaries for processing withdrawals and reward distributions.
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EIP-7685 improves communication between the execution and consensus layers of Ethereum, allowing smart contracts to interact directly with the ignition layer. This development could reduce the need for intermediaries, such as trusted oracles, thereby improving efficiency.
Additionally, EIP-2537 will make cryptographic processes on the network more efficient, particularly benefiting from zero-knowledge (ZK) operations which are crucial for scalability and privacy.
In addition to these prominent proposals, the PECTRA upgrade includes four other EIPs designed to streamline network operations. These encompass improvements such as the state’s historical block hashes service and on-chain validator deposits, which will further optimize Ethereum’s infrastructure.
Despite these expected upgrades, Ethereum price continues to hover around $3,200 and $3,300, showing a notable lack of catalysts that could increase the Altcoin’s price.
Featured image of Dall-E, chart from TradingView.com
