Vitalik Buterin, co -founder of Ethereum, recently presented some interesting ideas that can change how this network works. One of them is RISC-V, and the other is the upcoming Pectra update, scheduled for May 7, 2025. I think it is worth knowing what it is all about, because it can affect the future of Ethereum and its prices. Below I explain everything step by step. They will start by quoting, which Vitali says about the expectations of the market and what it can mean for the whole network.
What is RISC-V and why Vitalik wants to introduce it?
This is a kind of computer architecture that is open and free, that is, everyone can use it without paying for licenses. It is simple and efficient, which boils down to the fact that programs can work faster and use less energy. Ethereum currently uses something called Ethereum Virtual Machine (EVM), which is like a engine that drives smart contracts, i.e. automatic contracts that allow, for example, decentralized finances such as stock exchanges and DEFI or NFT tools.
Vitalik suggested to replace EVM RISC-V because he thinks that this will improve Ethereum performance. Currently, EVM can be free and complicated, which means that transactions on Ethereum are sometimes expensive and slow, especially compared to newer blockchains, such as Solana or Avalanche. According to Vitalik, the transition to RISC-V could speed up the network, reduce costs and facilitate developers building application. This is a big change, but if it succeeds, it can make Ethereum again a leader in the world of blockchains.
Vitalik published his proposal on the Ethereum Magicians Vitalik Buterin Proposes Replacing Ethereum’s Evm with RISC-V forum, where he explains that RISC-V can solve the main problems with scalability, i.e. the ability of the network to operate more transactions. He says that this will not affect the basic functions of Smart Contracts, such as accounts or data storage. Just change the way the code is compiled and activated. Developers could write in languages like Solidity and compile them directly to RISC-V instead of the current EVM format.
What does Vitalik say and what are the market expectations?
Vitalik is very involved in these changes and believes that they are crucial for the future of Ethereum. In his proposal regarding RISC-V says it is a “radical but necessary step” to improve the efficiency of the Ethereum executive layer and solve scalability problems. He believes that without such improvements, Ethereum may lose his competitiveness in the face of faster and cheaper blockchains.
The market has mixed expectations. Many investors believe that these improvements can increase the price of ETH, because more people will start using the network, which will increase demand. For example, Fidelity Digital Assets suggests that Pectra can affect institutional investors, improving scalability and efficiency, it is worth reading this text to get to know the topic deeper – ethereum’s pectra upgrade: what should investors know?. But there are also fears because changing such a large system as Ethereum always carries a risk, e.g. code errors or compatibility problems. Tests on networks like Holesky went well, which gives hope, but the market remains careful.
What will happen on May 7, 2025 with the PECTRA update?
Now let’s move on to the PECTRA update, which is scheduled for May 7, 2025. This is a large Ethereum update, which is to introduce several improvements so that the network is more scalable, user -friendly and efficient. The decision about the date was made by Ethereum developers during their meeting, and previously it was tested on test networks, such as Hoodi and Holesky, without major problems. More information can be found at this link: Ethereum Developers Lock in May 7 for Pectra Upgrade.
What exactly will Pectra bring?
- Abstraction of accounts: This means that wallets on Ethereum will be more flexible. For example, if you forget a private key, you will be able to recover your account or set that several people must confirm the transaction, as in a bank. This is to make the use of Ethereum easier, especially for new users.
- Stacking improvements: Staking is blocking your ETH to support the network and earn prizes. Pectra is to improve this, e.g. by raising staking limits, which can attract more people to participate. This is important because Staking is the basis of Ethereum security since the transition to proof-of-stake in 2022.
- Changes in gas fees: Gas is a fee that you pay for using Ethereum, and unfortunately as of today, depending on the network load, it is often very high. Pectra is to make the fees more predictable and potentially lower, which will please everyone who uses the solutions provided by Ethereum.
- Better data support: This applies to layers 2, like rolls that relieve the main network, making transactions from the side, and then saving them. Pectra is to improve how these data are processed, which can speed up Ethereum and reduce costs for layers 2.
These changes are built on previous updates, such as Dencun, which introduced Blob Transations (EIP-4844), but Pectra goes on, focusing on staking improvements and interaction between layers.
What can this mean for Ethereum?
If Vitalik’s proposals, including RISC-V, are implemented, Ethereum can become much faster and cheaper to use. This can attract more developers who will create new applications, and users who will use DEFs, NFT or other services. PECTRA update, with better staking and cheaper transactions, can also increase adoption, especially among institutions and large companies.
For investors, this can mean an increase in the price of ETH, because greater utility often leads to greater demand. If everything goes well, Ethereum can strengthen his position as a leader among blockchains, but it takes time and further tests.
To sum up, Vitalik Buterin offers big changes for Ethereum, such as RISC-V to improve performance, and Pctra update on May 7, 2025 to facilitate the use of the network. Vitalik believes that this is crucial for competitiveness, and the market hopes to increase adoption and ETH prices. For the network, it is a chance to be faster and more friendly, but if it comes out, we’ll see. I believe that successful introduction of these changes can positively affect the entire Altcoin sector, giving a good impulse to the beginning of Altsease.
