What consensus mechanism does Ethereum use after The Merge?

After The Merge, Ethereum uses proof of stake.

Ethereum completed The Merge on September 15, 2022, when its original execution layer joined the Beacon Chain, a proof-of-stake consensus layer. This replaced Ethereum’s previous proof-of-work system, ending the need for miners to secure the main network.

Under proof of stake, validators commit, or stake, ETH and are selected to propose and attest to blocks. Protocol rules can penalize dishonest or persistently disruptive behavior by reducing a validator’s staked balance. Ethereum’s execution layer still handles transactions and smart contracts; The Merge changed how consensus is reached rather than replacing Ethereum’s applications.

Proof of work remains associated with Bitcoin and with Ethereum Classic, which continued mining after the 2016 Ethereum split. The Merge also did not make Ethereum instantly faster or cheaper; later upgrades address scaling and network capacity.