Ethereum's technical architecture: execution, consensus and applications

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Ethereum is a distributed state machine operated by a peer-to-peer network. Its execution layer processes transactions and smart-contract code in the Ethereum Virtual Machine, while the consensus layer uses proof-of-stake validators to agree on blocks and finality.

Accounts submit transactions, smart contracts contain executable code, and gas measures computational work. Applications normally communicate with nodes through standard interfaces such as JSON-RPC.

This architecture does not make every application decentralised or safe. Smart-contract bugs, compromised interfaces, malicious signatures, bridges and custody arrangements can create additional risks.

Technical sources: Ethereum developer documentation and EVM documentation.

This is a technical explainer, not investment advice.

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