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The execution layer in Ethereum, previously known as Eth1, is one of the two layers that form Layer 1, with the other being the consensus layer. In 2022, Ethereum underwent a major upgrade called the Merge, shifting from a proof-of-work (PoW) system to a proof-of-stake (PoS) mechanism. This transition was designed to eliminate the energy-intensive mining process associated with PoW.
During the Merge, Ethereum’s original PoW mainnet was integrated with the Beacon Chain, a separate PoS blockchain, to create a unified PoS Ethereum blockchain. Post-Merge, the PoW mainnet was repurposed and renamed the execution layer, responsible for transaction processing and smart contract executions. Meanwhile, the Beacon Chain was renamed the consensus layer, which now secures the network through consensus among validators operating under the PoS system.