Ethereum’s Pectra Upgrade Enhances Wallets, Making Them ‘Smart’ and Enhancing User Experience

The upcoming Ethereum Pectra upgrade, expected to be implemented in late 2024 or early 2025, will introduce new functionalities and improve the user experience of crypto wallets. The upgrade includes Ethereum Improvement Proposal (EIP) 3074, which allows normal crypto wallets to function like smart contracts. This means that standard wallets, such as MetaMask, will have smart contract capabilities. Some of the features enabled by EIP-3074 include transaction bundling, where users only need to sign once, and sponsored transactions, where a wallet can delegate funds for use by another wallet. However, there are concerns about the security risks associated with this upgrade. Despite the potential risks, developers believe that people will always find ways to lose their money, citing examples of users giving their private keys to trading bots. The EIP also introduces a social recovery feature that eliminates the need for seed phrases. Overall, the Pectra upgrade aims to enhance the functionality and usability of crypto wallets on the Ethereum network.