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  1. Home
  2. /Glossary
  3. /Execution Layer
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blockchain

Execution Layer

The part of a blockchain that processes transactions and runs smart contracts.

Definition

The part of a blockchain that processes transactions and runs smart contracts. After Ethereum's Merge, it was split into an execution layer (formerly ETH1) and a consensus layer (formerly ETH2). Modular blockchains separate execution from other functions so each can be optimized independently.

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Related Terms

Consensus Mechanism

The method a blockchain uses to agree on which transactions are valid and in what order.

Modular Blockchain

A blockchain design that separates core functions like execution, consensus, settlement, and data availability into specialized layers.

Smart Contract

Self-executing code stored on a blockchain that runs when conditions are met.

ABI

Application Binary Interface.

Account Abstraction

A way to make crypto wallets behave more like normal apps by turning every account into a smart contract.

ERC-4337

The Ethereum standard for account abstraction without changing the core protocol.

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