The Ethereum Foundation has officially announced a significant terminology update for the Ethereum network. Moving forward, the terms "Eth1" and "Eth2" will be phased out and replaced with "execution layer" and "consensus layer," respectively. This change is more than just a rebranding; it reflects a fundamental shift in how the network's architecture is understood as it evolves.
This strategic renaming was not made overnight. Core developers had already stopped using the old terminology by the end of 2021. The new terms provide a more accurate and descriptive framework for the two primary layers that now constitute the Ethereum protocol.
Understanding the New Ethereum Terminology
To fully grasp the importance of this change, it's crucial to understand what each new term represents.
What Is the Execution Layer?
The execution layer is where all the smart contracts and the core network rules reside. It is the engine room of Ethereum, processing transactions and executing the logic encoded within decentralized applications (dApps). This layer handles the state of the network, which includes account balances and smart contract code.
What Is the Consensus Layer?
The consensus layer is responsible for ensuring that all devices, or nodes, contributing to the network agree on the state of the blockchain. It enforces the rules of the protocol, verifying that transactions are valid and that blocks are produced correctly. Crucially, it also punishes any bad actors that do not follow the rules, a process known as slashing in a Proof-of-Stake system.
The Reasons Behind the Terminology Shift
The shift in language addresses several key issues that arose with the old "Eth1" and "Eth2" labels.
Improving Conceptual Clarity
The old terms inadvertently created a misleading perception that "Eth2" was a completely new blockchain that would replace "Eth1," rendering the original chain obsolete. This was never the case. The new terminology of "layers" more accurately depicts a single, unified protocol where two distinct sets of functions work in harmony. It eliminates the notion of a numbered upgrade path and instead frames the evolution as an integration of components.
Enhancing User Safety and Education
Misunderstanding the upgrade path created opportunities for scams. Malicious actors could exploit the confusion by claiming to sell "Eth2" tokens or promoting fraudulent migration schemes. By adopting clearer, more technical terms, the ecosystem aims to reduce this risk and educate users on the actual technical structure of the network they are using.
The Path to The Merge
This terminology update is intrinsically linked to the most significant upgrade in Ethereum's history: The Merge. This event marked the moment when the Ethereum Mainnet (the original execution layer) merged with the Beacon Chain (the new consensus layer), transitioning the network from Proof-of-Work to Proof-of-Stake.
The Merge was not a chain swap. It was the fusion of these two layers into one cohesive system. The execution layer continued its role of processing transactions, but it now derived its security from the new Proof-of-Stake consensus layer instead of the energy-intensive mining process.
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The Impact on Developers and Users
For most users and developers, this change is primarily about communication and education. The underlying technology remains the same; only the words used to describe it have changed.
- Developers will continue to build smart contracts on the execution layer without any changes to their code. Their interaction with the consensus layer is mostly indirect, handled by the node infrastructure.
- Stakers are directly participating in the consensus layer by validating transactions and creating new blocks. Their role is crucial for the security and decentralization of the network.
- End-users interacting with dApps or holding ETH may not notice a direct difference, but they benefit from a more secure, scalable, and environmentally friendly network secured by the new consensus layer.
Frequently Asked Questions
Q: Do I need to swap my ETH tokens because of this change or The Merge?
A: No. There was no action required for token holders during The Merge. Your ETH remained the same ETH. The change was a consensus mechanism upgrade, not a new token launch. Always be wary of scams suggesting you need to migrate or swap your ETH.
Q: What is the main difference between the execution layer and consensus layer?
A: Think of the execution layer as the part of Ethereum that determines what happens (executing transactions and smart contracts). The consensus layer determines the order of those events and ensures everyone agrees on that order, replacing the old mining system with staking.
Q: Are "Eth1" and "Eth2" completely wrong terms now?
A: Yes, the Ethereum Foundation and core developers have officially deprecated these terms. While you may still encounter them in older articles or community discussions, the correct terms to use are "execution layer" (instead of Eth1) and "consensus layer" (instead of Eth2).
Q: Did The Merge reduce gas fees on Ethereum?
A: No, The Merge was a change of consensus mechanism from Proof-of-Work to Proof-of-Stake. It significantly reduced energy consumption but did not directly lower gas fees. Solutions like layer-2 rollups (Arbitrum, Optimism) and ongoing protocol upgrades (danksharding) are designed to address scalability and high transaction costs.
Q: How does the consensus layer punish malicious validators?
A: The consensus layer has a mechanism called "slashing." If a validator acts maliciously or against the protocol rules (e.g., by proposing multiple conflicting blocks), a portion of their staked ETH can be slashed (destroyed), and they can be removed from the validator set.
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Looking Forward: A Unified Ethereum
The retirement of "Eth1" and "Eth2" marks an important step in Ethereum's maturation. It signifies a move away from a transitional mindset toward a more stable and scalable vision of a single, unified blockchain. This new terminology provides a solid foundation for understanding the future upgrades focused on scaling, such as sharding, which will further enhance the network's capacity.
The focus is now squarely on building and improving this integrated system, where the execution and consensus layers work together to create a global, decentralized computer for the future.