Ethereum Activates Pectra: How the Upgrade Will Transform the User Experience

By: coincodex|2025/05/09 01:30:02
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Yesterday, May 7, 2025, the Ethereum network successfully activated the Pectra update, which introduced significant changes to the blockchain. The update occurred at the beginning of epoch 364,032 at approximately 12:00 CET and includes three key proposals to improve Ethereum (EIPs).The main changes are the introduction of smart account functionality, increased limits for staking, and improved Layer 2 scalability. These innovations are aimed at simplifying the user experience and reducing transaction fees.Key Elements of the UpdateThe Pectra update includes three major proposals to improve Ethereum:EIP-7702 allows external accounts to act as smart contracts and cover gas and payments in non-Ethereum tokens.EIP-7251 increases the staking limit for validators from 32 ETH to 2,048 ETH, simplifying transactions for large stakers.EIP-7691 increases the number of data blocks per block, which provides better Layer 2 scalability and potentially significantly reduces transaction fees.Pectra introduces "smart account" functionality at deeper layers of the protocol and improves Ethereum's scalability through Layer 2 solutions.Improved Account AbstractionEIP-7702 is a potentially great addition for Ethereum. Account abstraction has so far been unable to gain widespread adoption due to the need to switch wallets.The benefits of implementing such a solution include eliminating approval processes, removing the need to sign each transaction, separating access rights and actions, and enabling automation on behalf of the user. After the update, it will be easier for developers to implement these features.While account abstraction will not magically lead to mass adoption, it does remove a significant barrier to entry for new users. It provides a Web 2.0–like user experience by hiding many basic elements from users.The update will pave the way for native, gas-free transactions and simplified user flows. Once this is done, there will no longer be endless ERC-20 approvals, and users will no longer need a native currency such as ETH to pay transaction fees.The user experience will be completely redesigned, with permission and delegation systems that will allow wallets to give applications more limited capabilities, thereby improving overall security. For example, the wallet pop-up will not appear every time you interact with OpenSea, the largest NFT marketplace.However, the change is not without its drawbacks. Users get one more potentially dangerous thing they can sign, which could be even more devastating than an endorsement for programs that drain cryptocurrency wallets.That said, there is also confidence that there will be no measurable increase in risk. By this point, the industry knows how to create safe contracts, especially with something as minimal as delegating EIP-7702.Simplifying Institutional StakingEIP-7002 greatly simplifies the integration of institutional staking without excessive risk. Customers of staking services previously had to obtain a signed message from their staking service provider to be able to exit and safely store it for the future.Prior to Pectra, stakers could not exit without the involvement of their staking service provider. These messages also could not be generated until approximately 13 hours after the start of this exit delay will now be reduced to approximately 13 minutes.Delivery of Validator Deposits to the NetworkAnother notable improvement is EIP-6110. It ensures that the execution layer block carries data about new validator deposits to the consensus layer. Validator deposits are new validators joining the Ethereum staking protocol.Previously, consensus clients waited for blocks to vote for a Merkle root that summarized the deposits. Now the execution layer block includes a list of new validator deposits.This type of update makes changes deep within the Ethereum consensus layer, and its implementation follows client bugs that disrupted the Ethereum Holesky and Sepolia test networks.The biggest concerns are about client bugs, but respected teams and the Ethereum Foundation are working together to prevent this from happening on the core network.The bottom lineThe Pectra update represents an important step in the evolution of the Ethereum ecosystem to improve the usability and efficiency of the network. Smart accounts promise to make it easier for users to interact with decentralized applications, while scalability improvements could lead to lower transaction fees.Kraken: Best crypto exchange for security & reliabilityBuy, sell, and trade 400+ cryptocurrencies with industry-leading securitySpot, Futures & Margin trading – leverage up to 5x for advanced tradersEarn rewards with staking on top cryptocurrencies24/7 customer support and high liquidity for fast tradesRegulated in the US with strong compliance and security measures13+ million users worldwideGet Started on Kraken

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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions

The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.


There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."


Question One: Is this encryption the same as Signal's encryption?


No. The difference lies in where the keys are stored.


In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.


X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.


This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.


The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.


The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.


After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."


From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.


In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.



As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."


Issue 2: Does Grok know what you're messaging in private?


Not continuous monitoring, but a clear access point.


For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.


This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.


There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."


Issue 3: Why is there no Android version?


X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.


In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.



WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.


X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.


These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.


Elon Musk's "Super App"


This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.



X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.


Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.


The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.


X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.


The help page sentence has never been just technical instructions.


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