Ethereum’s Pectra Testnet Launches, Celo Migrates to Layer-2, and Bitcoin DeFi Eyes Zero-Knowledge Future

Ethereum's highly anticipated Pectra upgrade has entered its final testing phase on the new “Hoodi” testnet. This crucial step comes after failed finalization attempts on Holesky and Sepolia, prompting developers to create Hoodi for a fresh run-through. Pectra introduces major improvements, including smart contract support for wallets and the ability to pay gas fees in tokens other than ETH. If Hoodi performs smoothly over the next 30 days, the upgrade will be deployed to Ethereum's mainnet.

Meanwhile, Hyperliquid is simplifying token transfers in DeFi. A recent technical update enables seamless token linking between its native HyperCore platform and Ethereum-compatible HyperEVM. This reduces user friction and opens up more efficient cross-platform interactions without the need for third-party bridges.

Celo has officially transitioned from a layer-1 blockchain to an Ethereum layer-2 solution, completing a process that began in July 2023. The move, powered by Optimism’s OP Stack, allows faster, cheaper transactions while maintaining EVM compatibility. Celo’s migration is the first of its kind and could serve as a model for other blockchains seeking similar scalability.

On the Bitcoin front, developers are exploring how to integrate zero-knowledge (ZK) proofs to enable more advanced DeFi functionalities. These changes would typically require a soft fork, which many developers are wary of. However, BitcoinOS has introduced BitSNARK, a rollup protocol enabling ZK verification without a fork, potentially connecting Bitcoin with blockchains like Ethereum, Solana, and Cardano.

These developments mark significant strides in blockchain scalability, DeFi usability, and cross-chain interoperability—bringing crypto tech closer to mainstream adoption.