Ethereum developers are considering splitting the upcoming Pectra upgrade into two separate phases

Ethereum developers are considering splitting the upcoming Pectra upgrade into two separate phases due to its complexity.

The Pectra upgrade, which combines the Prague and Electra upgrades, aims to enhance both the execution and consensus layers of the Ethereum network. 

Prague upgrade consists of Execution Layer upgrade. It called Prague because it named after a Devcon city. While, Electra is Consensus Layer upgrade, it named after a star.

The first phase, tentatively called Pectra 1, is expected to be released as soon as possible, potentially by early 2025. Ethereum developers set goal to release it between February and June 2025.

The second phase is called Pectra 2.

This phase will include several Ethereum Improvement Proposals (EIPs) such as EIP-3074, which allows standard wallets to function like smart contracts, and EIP-7251, which increases the staking limit for validators.

What is Pectra upgrade?

The Ethereum Pectra upgrade is an upcoming major network update scheduled for early 2025, combining two previously planned upgrades: Prague and Electra.

It aims to improve both the execution layer (where smart contracts operate) and the consensus layer (managing the proof-of-stake system).

Key features include:

1.      Validator Enhancements (EIP-7251): This proposal increases the maximum effective staking limit for validators from 32 ETH to 2,048 ETH. This allows validators to consolidate their stake into fewer validators, improving network efficiency and reducing operational costs, especially for large staking providers​

2.    Smart Contract Wallet Integration (EIP-3074 and EIP-7702): This upgrade enhances regular cryptocurrency wallets by enabling them to function like smart contract wallets during transactions. This will allow features such as transaction bundling, delegated security, and social recovery, significantly improving wallet security and user experience​.

3.    Improved Gas Efficiency: EIP-4758 aims to lower gas costs by optimizing operations within the Ethereum Virtual Machine (EVM). This will benefit users by reducing transaction fees, particularly for complex smart contracts​.

4. Peer Data Availability Sampling (PeerDAS): Another feature being considered is PeerDAS, which enhances Ethereum’s scaling capabilities, particularly for layer-2 rollups. This will increase the network's capacity to process more transactions efficiently​.

The Pectra upgrade aims at increasing efficiency and scalability of the Ethereun network.