Ethereum uses Proof of Stake (PoS) consensus layer to verify transactions, add them in order and secure the chain without requiring a central authority.
A transaction is first broadcast to the Ethereum network using a peer-to-peer protocol and placed in the mempool until a validator confirms it.
Validators are elected to propose new blocks and multiple committees are formed to vote on the validity of a block.
Staking is used to activate and control a validator, with every 32 ETH staked creating one validator.
The system ensures consensus through a random process, where validators are weighted by their balance, ensuring fairness.
A supermajority refers to a vote made by at least two-thirds of the total balance of all active validators in the network. Validators with more ETH have more influence.
Finality refers to the point where a block cannot be altered, ensuring transactions in the finalized block are irreversible.
Validators earn rewards for making attestations, and can face penalties for making bad votes (slashable offences).
Validators must stake 32 ETH to become active and maintain their balance to stay active, with mechanisms in place to limit the number of activations and exits.
The consensus process in Ethereum’s PoS system ensures that it remains decentralized without compromising on speed or performance.