Ethereum, the world’s second-largest cryptocurrency by market capitalization, is set to undergo another major upgrade in the coming months. This upgrade, known as Ethereum Improvement Proposal (EIP) 2929, combines three different EIPs: Prague, Electra, and Pectra. In this article, we will explore these three EIPs and what they mean for the future of Ethereum.

Prague

Prague is the first of the three EIPs that make up the upcoming Ethereum upgrade. It includes several changes to the Ethereum Virtual Machine (EVM), which is the part of the Ethereum network that executes smart contracts. One of the most significant changes in Prague is the addition of new opcodes, which are low-level commands that allow developers to create more complex smart contracts. These new opcodes will also help to improve the gas efficiency of the EVM, which is the measure of how much it costs to execute a contract.

Another important change in Prague is the introduction of a new way to handle transactions called “transactional execution context.” This change will make it easier for developers to write smart contracts that can handle multiple transactions at once. Additionally, it will help to improve the scalability of the Ethereum network by reducing the amount of data that needs to be processed for each transaction.

Electra

Electra is the second EIP that makes up the upcoming Ethereum upgrade. It includes several changes to the Ethereum protocol, which is the set of rules that govern how the network operates. One of the most significant changes in Electra is the introduction of a new way to calculate the difficulty of mining a block, which is the process of adding new transactions to the blockchain. This new algorithm, called “ProgPow,” is designed to make it more difficult for large mining operations to dominate the network. This, in turn, will help to ensure that the network remains decentralized and that mining remains accessible to individuals and small businesses.

Another important change in Electra is the introduction of a new way to handle transactions called “state rent.” This change will help to reduce the amount of data that needs to be stored on the blockchain, which will make it faster and cheaper to process transactions. Additionally, it will help to improve the scalability of the network by reducing the amount of data that needs to be processed for each transaction.

Pectra

Pectra is the third and final EIP that makes up the upcoming Ethereum upgrade. It includes several changes to the Ethereum network’s consensus rules, which are the rules that determine how nodes on the network agree on the state of the blockchain. One of the most significant changes in Pectra is the introduction of a new way to handle forks, which are situations where the network splits into two different chains. This new algorithm, called “Hybrid Casper,” is designed to make it easier for the network to reach consensus and to prevent forks from occurring.

Another important change in Pectra is the introduction of a new way to handle the “gas” that is used to execute smart contracts. Gas is a measure of the computational resources that are required to execute a contract. Currently, the price of gas is determined by the market and can vary significantly. With Pectra, the price of gas will be fixed, which will make it easier for developers to predict the cost of executing a contract.

Conclusion

The upcoming Ethereum upgrade, which combines the Prague, Electra, and Pectra EIPs, is set to bring several significant changes to the Ethereum network. These changes include the addition of new opcodes, the introduction of a new way to handle transactions, and the improvement of the scalability and decentralization of the network. Overall, these changes will help to make Ethereum more efficient, more secure, and more accessible to developers and users. As the second-largest cryptocurrency by market capitalization, Ethereum’s moves have a significant impact on the crypto space and the blockchain industry as a whole.