Ethereum's Pectra Deploys on Testnet Via The Protocol's Implementation

Welcome to The Protocol, CoinDesk's weekly summary of the most significant developments in cryptocurrency technology. I'm Ben Schiller, the managing editor at CoinDesk.

Here's what you'll find in this edition:

PECTRA UPGRADE LAUNCHES ON TESTNET: The Pectra upgrade for Ethereum was launched on the Holesky testnet on February 24, but it did not finalize as anticipated. This upgrade combines 11 major improvements, or "Ethereum improvement proposals" (EIPs), into one package. The key improvement is EIP-7702, which aims to enhance the user experience of crypto wallets. This proposal, which was quickly written by Ethereum co-founder Vitalik Buterin in just 22 minutes, will allow wallets to have some smart contract capabilities, as part of a broader strategy to bring account abstraction to Ethereum, making wallets less cumbersome to use. Another crucial improvement, EIP-7251, will increase the maximum amount validators can stake from 32 to 2,048 ETH. This improvement is intended to simplify some of the technicalities validators face when staking ETH: Those who stake more than their 32 ETH have to spread that across multiple validators, making the process somewhat bothersome. By lifting the maximum stake limit and combining those validators, it could speed up the process of setting up new nodes. The Holesky testnet is the first of two testnets to run through a simulation of Pectra. The next test is expected to occur on the Sepolia testnet on March 5. However, developers could postpone it depending on the extent of today's issue. After Pectra goes live on both testnets, developers will set a final date to activate the upgrade on the mainnet. — Margaux Nijkerk Read more.

MIYAGUCHI STEPS DOWN FROM ETHEREUM FOUNDATION ROLE: Aya Miyaguchi, Executive Director of the Ethereum Foundation, is stepping down from her position to transition to a new role as president at the organization. This news comes as the nonprofit undergoes a leadership shake-up and as Ethereum has become less popular for new developers in recent months, with some even blaming Miyaguchi’s leadership for the blockchain's token price lagging behind other cryptocurrencies. “This new opportunity will allow me to continue supporting EF’s institutional relationships, and to expand the reach of our vision and culture more broadly,” Miyaguchi wrote in a blog post published on February 25. The Ethereum Foundation is a nonprofit that supports the development of the Ethereum blockchain. Founded in 2014, Miyaguchi joined in 2018 and has been the executive director ever since. Ethereum co-founder Vitalik Buterin wrote in a post that “every success of the EF - the steady execution of Ethereum hard forks, client interop workshops, Devcon, Ethereum's culture and steadfast commitment to its mission and values, and more - is in part a result of Aya's stewardship.” — Margaux Nijkerk Read more.

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AVALANCHE CARD LAUNCHES: The Avalanche Foundation, the non-profit that helps oversee the development of the Avalanche blockchain, announced that its long-awaited Avalanche Card, a Visa credit card that enables users to purchase items with their cryptocurrency, is now available for use. The card was developed in collaboration with Rain, a blockchain-based card issuing platform. It allows users to spend their Avalanche tokens (AVAX), wrapped AVAX, and stablecoins USDT and USDC at any store that accepts Visa, the foundation said in an email. While other teams have also released credit cards tied to a user's crypto holdings, this news signals the further integration between traditional financial technologies and cryptocurrency. The Avalanche Foundation said in October that it planned to introduce the card, focusing on signing up users from Latin America and the Caribbean. According to the card’s website, the credit card will be linked to users' “new self-custody wallet and unique address per asset.” “In a move to double down on mainstream adoption of decentralized finance (DeFi), Avalanche remains committed to powering accessible inroads to blockchain for every type of user,” the team said. — Margaux Nijkerk Read more.

HACKERS USE GITHUB TO STEAL BTC: The GitHub code you use to build a trendy application or patch existing bugs might just be used to steal your bitcoin (BTC) or other crypto holdings, according to a Kaspersky report. GitHub is a widely used tool among developers, especially those focused on crypto projects, where a simple application may generate millions of dollars in revenue. The report warned users of a “GitVenom” campaign that’s been active for at least two years but is steadily on the rise, involving planting malicious code in fake projects on the popular code repository platform. The attack begins with seemingly legitimate GitHub projects — like making Telegram bots for managing bitcoin wallets or tools for computer games. Each comes with a polished README file, often AI-generated, to build trust. But the code itself is a Trojan horse: For Python-based projects, attackers hide nefarious script after a bizarre string of 2,000 tabs, which decrypts and executes a malicious payload. For JavaScript, a rogue function is embedded in the main file, triggering the launch attack. Once activated, the malware pulls additional tools from a separate hacker-controlled GitHub repository. Once the system is infected, various other programs kick in to execute the exploit. How can users protect themselves? By thoroughly examining any code before running it, verifying the project’s authenticity, and being suspicious of overly polished READMEs or inconsistent commit histories. Because researchers don’t expect these attacks to stop anytime soon: “We expect these attempts to continue in the future, possibly with small changes in the TTPs,” Kaspersky said. — Shaurya Malwa

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