Basic Course
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1.2
Execution & Consensus Layer
As of The Merge on September 15, 2022, Ethereum operates consensus (agreeing which transactions should be recorded) via Proof of Stake (PoS).
The old Ethereum blockchain operated via Proof of Work (PoW), where rewards were earned by mining (computers solving cryptographic problems designed to take a certain amount of time).
The Merge refers to the migration from PoW to PoS by joining two chains running side by side: the original Ethereum chain with mining removed and a new Beacon Chain developed to test the Proof of Stake consensus mechanism. These two former chains, after merge, are now referred to as two Ethereum layers.
Execution Layer
The Execution Layer is from the original Ethereum blockchain. This is where all transactions are bundled in blocks and executed if they pass consensus.
Consensus Layer
The Consensus Layer refers to the Beacon Chain that ran side by side with the original blockchain to test Proof of Stake. The Consensus layer takes care of staked ETH, rewards distribution, and agreement on state amongst the other validators.
Together, these layers record the current state of the Ethereum blockchain.
This new blockchain, with many nodes' validators recording and attesting to transactions, ensures the overall database exists in multiple places, depending on no individual node, with each validator acting as a check on the others. In this way, the blockchain entries are immutable (unchangeable and persistent), publicly viewable, resistant to fraud, and decentralized - no single entity owns the blockchain.
There are some issues that arise in this method of consensus, however, which brings us to the Rocket Pool protocol...
End of lesson 1