Definition ∞ The Execution Layer is the component of a blockchain architecture responsible for processing and validating transactions according to the rules defined by the network’s protocol. It handles the computation and state changes that occur as a result of these transactions, often interacting with the consensus mechanism to finalize the ledger’s state. This layer is where the actual operations of the blockchain take place.
Context ∞ The performance and efficiency of the Execution Layer are frequent subjects of technical discussion, particularly concerning scalability solutions like sharding or rollups. Innovations aimed at increasing transaction throughput and reducing gas fees on this layer are critical for the broader adoption of blockchain technology.
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