Ethereum Architecture

Definition ∞ This refers to the foundational design and organizational principles of the Ethereum blockchain. It encompasses the components that enable smart contract execution, decentralized application hosting, and the network’s consensus mechanism. Understanding this architecture is key to grasping Ethereum’s capabilities and limitations.
Context ∞ Discussions surrounding Ethereum’s architecture frequently involve its transition to Proof of Stake, the development of layer-two scaling solutions, and the implementation of EIPs (Ethereum Improvement Proposals). Analysts are evaluating how these architectural shifts impact transaction throughput, gas fees, and overall network security. Key future developments to monitor include the success of sharding implementations and the evolution of its consensus protocol.