How It Works
Ethereum's EVM executes Solidity and Vyper smart contracts deterministically across all nodes. Since the Merge, validators stake 32 ETH to propose and attest to blocks, with slashing penalties for malicious behavior. The Beacon Chain coordinates ~900,000 active validators who collectively secure the network. EIP-1559 introduced a base fee mechanism that burns ETH with each transaction, making ETH deflationary during periods of high network activity. Layer 2 networks (Arbitrum, Optimism, Base, zkSync) use Ethereum as the settlement and data availability layer, scaling throughput to thousands of TPS.
Consensus Mechanism: Proof of Stake
Proof of Stake consensus selects block proposers based on the amount of cryptocurrency staked as collateral. Validators risk losing their stake (slashing) if they act dishonestly, creating economic security without energy expenditure. Stake-weighted selection means larger stakers have proportionally greater influence on block production.
Key Architecture Facts
| Category | Layer 1 |
| Consensus | Proof of Stake |
| Launched | 2015 |
| Founder | Vitalik Buterin |