Ethereum’s next big upgrade, the Pectra hard fork, is set to roll out in March 2024, and it’s bringing some major changes. Vitalik Buterin, Ethereum’s co-founder, says the upgrade will double the capacity of Layer-2 networks by increasing the blob target from 3 to 6.
The “Blobs” are big chunks of data introduced in the Dencun hard fork earlier last year. They help Layer-2 solutions process more transactions at lower costs. With Pectra’s changes, Ethereum will be able to handle way more traffic, making the network faster and cheaper to use.
Pectra was originally planned as one of Ethereum’s biggest upgrades, packed with 20 improvement proposals. But developers later split it into two to make the rollout smoother. Along with boosting blob space, Pectra will also raise validator staking limits and introduce better wallets for a smoother user experience.
Meanwhile, Ethereum’s gas limit and its impact on fees and processing capabilities has been talked about. Some believe raising the limit will make it less costly, but others believe it could make the network less stable.
A report by Blockscout recently saw Ethereum’s gas limit rise, which is its first such rise since Ethereum transitioned to Proof-of-Stake in 2022. Commentator Evan Van Ness noted that coordination under Proof-of-Stake takes a little longer in comparison with older Proof-of-Work, but the network continues to move towards becoming more decentralised.
Buterin also proposed that blob capacity must be altered through a staker-voted system rather than having to rely on future hard forks. That will allow Ethereum to expand with new technology without having to sit and wait for significant network upgrades. That proposed move generated discussion regarding Ethereum governance, with many wanting less rigid updates.
The excitement around Pectra is already impacted in the market. According to CoinMarketCap, Ethereum’s price has jumped over 10% in a day, bouncing back after a recent dip.
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