Welcome to The Protocol
CoinDesk’s weekly wrap-up of the most significant stories in cryptocurrency technology development is here. I’m Margaux Nijkerk, the Ethereum protocol reporter at CoinDesk.
In this issue:
- Ethereum’s Second Buggy ‘Pectra’ Test Could Lead to a Delayed Upgrade
- Ethereum Foundation Appoints New Co-Executive Directors Amid Leadership Changes
- Layer-2 BOB’s ‘Bitcoin DeFi’ Advances with Fireblocks Integration
- Popular Crypto Wallet MetaMask Launches New Roadmap
This article is featured in the latest issue of The Protocol, our weekly newsletter that delves into the technology behind crypto, one block at a time. Sign up here to receive it in your inbox every Wednesday.
Network News
ETHEREUM’S SECOND BUGGY TESTNET FOR PECTRA – DELAYS?
On Wednesday, Ethereum developers initially celebrated what seemed like a successful test of Pectra, the blockchain’s most significant upgrade since 2024, conducted on the Sepolia test network. However, a few hours post-test, Sepolia began to experience various errors. This marked the second instance of a buggy test for the highly awaited Pectra upgrade, which aims to enhance Ethereum’s efficiency, user experience, and validator system. The complications have prompted some developers to suggest that the upgrade might need to be postponed. The Sepolia test, conducted on March 5, was initially expected to be the final step prior to Pectra’s launch on Ethereum’s mainnet. Although the test seemed to succeed at first, developers later observed empty blocks being appended to the chain. The Ethereum Foundation has attributed this issue to “a problem with Sepolia’s permissioned deposit contract,” which “hindered numerous execution layer clients from including transactions in blocks.” Essentially, the issue was linked to a misconfiguration specific to the Sepolia test rather than an inherent flaw within Pectra itself. Despite this clarification, concerns have been raised regarding whether Pectra has undergone adequate testing. The prior test on Ethereum’s Holesky testnet also faced configuration problems, this time due to misconfigured validators.
— Sam Kessler Read more.
ETHEREUM FOUNDATION APPOINTS NEW CO-EXECUTIVE DIRECTORS
The Ethereum Foundation (EF), the non-profit organization dedicated to supporting the development and research of the Ethereum blockchain, announced in a blog post that they have appointed Hsiao-Wei Wang and Tomasz Stańczak as their new co-executive directors. This news follows the departure of Aya Miyaguchi, who has taken on the role of EF’s new president. This leadership reshuffle comes amid intense discussions within the community regarding the EF’s function in the ecosystem, as some members have criticized the organization and its leadership for the lagging price of the blockchain’s native token, ether (ETH), compared to other cryptocurrencies. Moreover, for the first time, Ethereum has attracted fewer new developers than its competitor, Solana. Additionally, former EF researcher Danny Ryan announced that he will be joining Etherealize, a new initiative aimed at bringing ETH to Wall Street.
– Margaux Nijkerk Read more.
BITCOIN LAYER-2 BOB AND FIREBLOCKS INTEGRATE
The hybrid layer-2 network BOB continues its mission to position Bitcoin at the heart of the decentralized finance (DeFi) universe through its integration with crypto custody provider Fireblocks. This collaboration means that over 2,000 entities utilizing Fireblocks will gain access to BOB’s DeFi ecosystem, which boasts a total value locked (TVL) of approximately $250 million. According to an announcement shared with CoinDesk, these users can now generate yield on their BTC holdings via BOB’s network.
— Jamie Crawley Read more.
POPULAR CRYPTO WALLET METAMASK LAUNCHES NEW ROADMAP
MetaMask, the widely used self-custodial crypto wallet for the Ethereum (ETH) network, revealed a series of announcements last week aimed at enhancing its user experience. A key component of MetaMask’s revamped roadmap involves integrating smart contract capabilities into its existing wallet infrastructure. Currently, MetaMask operates as an Externally Owned Account (EOA), which is managed through a public and private key. One significant drawback of EOAs is their vulnerability to human errors; if a user forgets their private key, access to their crypto holdings is permanently lost. Conversely, Contract Accounts (CAs) on Ethereum are governed by code and include recovery mechanisms as well as security checks for transaction verification. In a blog post shared during ETHDenver, the largest Ethereum conference in North America, the MetaMask team articulated that “smart-contract-based accounts allow us to solve numerous challenges: enabling new powerful uses of the assets you possess while simultaneously enhancing security. When users define their terms through programmable accounts, we significantly broaden the ways users can express their autonomy, all of which is enforced by their own code.” One of the new features designed to streamline the user experience on MetaMask includes ERC-5792, which builds upon the existing smart transaction feature. Under ERC-5792, also known as batched transactions, users can consolidate specific steps involved in transaction approvals, such as “approve + swap” with a single click, thereby saving both time and gas fees by bundling these actions together.
— Margaux Nijkerk Read more.
In Other News
Trading Titan Jump Is Regrouping Its U.S. Crypto Efforts, Insiders Say
- While Jump has maintained its digital assets trading and market-making activities in other parts of the world, crypto trading volume is reportedly accelerating globally, according to sources familiar with the situation. Ian Allison and Will Canny report.
David Sacks Quietly Divested From Crypto Company at Center of Conflict of Interest Controversy
- Sacks’ venture firm, Craft Ventures, exited its position in Bitwise ahead of the new administration, according to a source close to the matter. Sam Kessler reports.
Regulatory and Policy
- Executives from a variety of crypto companies, including Coinbase, Chainlink, and Exodus, will represent the industry at U.S. President Donald Trump’s inaugural White House crypto summit. Jesse Hamilton, Cheyenne Ligon, Nik De, and Christine Lee report.
Calendar
- March 18-20: Digital Asset Summit, New York
- April 8-10: Paris Blockchain Week
- April 30-May 1: Token 2049, Dubai
- May 14-16: Consensus, Toronto
- May 27-29: Bitcoin 2025, Las Vegas
- June 30-July 3: EthCC, Cannes
- Oct. 1-2: Token2049, Singapore
