The Ethereum Foundation has officially retired the terms Eth1 and Eth2, marking a pivotal shift in how the blockchain ecosystem communicates its architecture and upgrades. Moving forward, the original Ethereum chain—once known as Eth1—will be referred to as the execution layer, while the upgraded proof-of-stake (PoS) chain, formerly called Eth2, is now the consensus layer. This rebranding isn’t just semantic; it reflects a deeper effort to improve user understanding, prevent scams, and promote long-term inclusivity within the Ethereum community.
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Why Ethereum Dropped the Eth2 Name
For years, the Ethereum network's transition from proof-of-work (PoW) to proof-of-stake was colloquially known as "Eth2" or "Ethereum 2.0." While this terminology helped simplify complex technical changes for newcomers, it also created confusion. Many users mistakenly believed that Eth2 would replace Eth1 entirely—or worse, that they needed to manually upgrade or migrate their ETH tokens.
In a January 24 blog post, the Ethereum Foundation clarified that the term “Eth2” no longer serves the community effectively.
“One of the main problems with the name Eth2 is that it breaks a mindset for new users of Ethereum. They intuitively think that Eth2 will come first. Or that once Eth2 exists, Eth1 ceases to exist.”
Neither of these assumptions is accurate. The so-called “merge” does not involve replacing the existing network but rather integrating two core components: the execution layer (where transactions occur) and the consensus layer (which validates them via staking). Together, they form what we now simply call Ethereum.
By retiring outdated labels like Eth1 and Eth2, the foundation aims to eliminate misconceptions and streamline communication around future upgrades such as shard chains, rollups, and layer-2 scaling solutions.
Understanding the New Architecture
Under the updated terminology:
- Execution Layer: Handles transaction processing and smart contract execution—essentially what people traditionally associate with Ethereum.
- Consensus Layer: Manages network security through staking and validator coordination using the Beacon Chain.
- Upgrades: Individual developments like The Merge, Surge, Verge, Purge, and Splurge are now framed as sequential improvements rather than entirely new versions.
This shift emphasizes continuity over replacement. Ethereum isn’t being rebuilt—it’s being enhanced. There is no separate “Eth2 token.” All ETH remains valid on the unified network post-merge.
Fighting Scams with Clearer Language
A major driver behind this rebranding is scam prevention. Malicious actors have exploited the ambiguity of “Eth2” to trick users into sending ETH in exchange for fake “ETH2” tokens. These phishing schemes often claim users must “upgrade” their holdings before the merge or risk losing access.
The Ethereum Foundation warns:
“Unfortunately, malicious actors are trying to exploit the Eth2 misnomer to trick users into exchanging ETH for 'ETH2' tokens, or that they must somehow migrate ETH before the Eth2 upgrade.”
Now that “Eth2” is officially deprecated, educational campaigns can more effectively combat misinformation. Users should remember: you do not need to swap, migrate, or upgrade your ETH. Your assets remain secure on the network automatically.
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Community Reaction and Real-World Impact
The announcement received mixed reactions across crypto communities. On Reddit’s r/Ethereum, many users expressed indifference or mild frustration at the timing of the change.
One user commented:
“Whatever it's called, just post it as soon as possible.”
Another noted that rebranding efforts might be too late:
“Everyone in the media, even crypto people, use the term 2.0 or Eth2… Honestly, I think it’s better because it’s easier to understand than a ‘consensus layer’ for a (semi) layman.”
While technical accuracy is essential, accessibility matters too. The challenge lies in balancing precision with simplicity—an ongoing tension in decentralized ecosystems.
Still, industry experts agree that clearer language strengthens trust and reduces barriers to entry for new adopters.
The Road Ahead: Scalability Through Sharding
With The Merge complete (as of mid-2025), Ethereum’s next major milestone is shard chains, expected to roll out in late 2025 or early 2026. This upgrade will split the network into 64 parallel chains, distributing data load and dramatically improving scalability.
Sharding enables faster transaction throughput and lower fees by reducing congestion on the main chain. When combined with layer-2 rollups, Ethereum aims to support hundreds of thousands of transactions per second—a critical step toward mainstream adoption.
These enhancements fall under broader initiatives like The Surge and The Splurge, which focus on performance optimization and developer flexibility.
Market Outlook and Price Trends
Despite strong fundamentals, Ethereum’s price has faced volatility amid broader market downturns. At the time of writing, ETH trades around $2,437, down approximately 40% over the past 30 days due to macroeconomic pressures affecting both traditional and crypto markets.
However, long-term analysts remain bullish. The successful implementation of PoS has reduced Ethereum’s energy consumption by over 99%, enhancing its environmental sustainability and appeal to institutional investors.
Moreover, ongoing upgrades position Ethereum as a leading platform for decentralized finance (DeFi), NFTs, and Web3 applications.
Frequently Asked Questions (FAQ)
Q: Is there an Eth2 token I need to buy?
A: No. There is no official “Eth2” token. Any platform offering ETH2 for purchase is likely running a scam. Your existing ETH works seamlessly after upgrades.
Q: Do I need to upgrade or migrate my ETH?
A: No action is required. The transition to proof-of-stake was fully automated. Your wallet and holdings remain unchanged.
Q: What happened to The Merge?
A: The Merge refers to the successful integration of Ethereum’s execution and consensus layers in 2025, completing its shift from proof-of-work to proof-of-stake.
Q: Why is sharding important?
A: Sharding increases network capacity by splitting data across multiple chains, reducing congestion and lowering transaction costs.
Q: How does this affect staking?
A: Staking now secures the network via the consensus layer. You can stake ETH directly or through trusted services to earn rewards.
Q: Where can I learn more about Ethereum upgrades safely?
A: Always refer to official sources like ethereum.org or trusted educational platforms.
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Final Thoughts
The retirement of “Eth2” marks more than a terminology update—it represents Ethereum’s maturation into a robust, scalable, and user-focused blockchain platform. By focusing on clear communication and technical precision, the Ethereum Foundation is laying the groundwork for broader adoption and lasting innovation.
As Ethereum continues evolving through upgrades like sharding and rollups, staying informed—without falling for misinformation—has never been more important. Whether you're a developer, investor, or casual user, understanding these changes empowers you to participate confidently in the future of decentralized technology.
Core Keywords: Ethereum, Eth2, proof-of-stake, consensus layer, execution layer, The Merge, shard chains, blockchain upgrades