> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Execution Layer

> The blockchain component that processes transactions, executes smart contracts, and computes changes to network state.

# Execution Layer

The blockchain component that processes transactions, executes smart contracts, and computes changes to network state.

## Definition

The blockchain component that processes transactions, executes smart contracts, and computes changes to network state.

## Why it matters

Architecture determines how blockchain components divide responsibility for execution, consensus, settlement, and data.

## How it works

The execution layer receives transaction data from users, verifies their digital signatures, and runs the EVM code to calculate new account balances. It does not decide which transactions belong in a block; it simply processes whatever the consensus layer delivers to it, ensuring accuracy and order.

## Real-world example

Geth (Go-Ethereum) is the most popular execution client that handles the processing of blocks and smart contract execution for node operators.

## Advantages

* Improved modularity and maintenance
* Allows independent upgrades to components
* Clearer separation of responsibilities

## Limitations

* Requires coordination between client types
* Increased complexity for node operators
* Relies on consensus layer stability

## Common misconceptions

* People often think the execution layer handles block production, but it merely processes the transactions within a block provided by the consensus layer.
* Many believe the execution layer is the entire Ethereum network, failing to recognize the vital role of the consensus layer.

## Related knowledge

* [Blockchain](/categories/blockchain) — term
* [Cryptography](/categories/cryptography) — term
* [Web3](/categories/web3) — term

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**Canonical knowledge ID:** `glossary:execution-layer`