Section VII: Ethereum Framework
April 9, 2026
In the last lesson we covered block structure and PoS consensus. Now we trace what happens inside those blocks – how transactions are built, priced, propagated, and executed.
nonce increments per account, ensuring sequential execution and replay prevention.gasLimit, maxFeePerGas, maxPriorityFeePerGas.to, value, and optional data for contract calls.nonce before adding to the mempool; transactions with gaps are held.eth/68, snap/1)NewBlock, Transactions, GetBlockHeaders, etc.nonce, gasLimit, fee fields, to, value, data, chainId.chainId (EIP-155) binds signature to a specific network.to = null indicates contract creation; data holds init code.gasLimit, or insufficient balance before gossip.max_fee_per_gas and max_priority_fee_per_gas (tip to proposer).min(max_fee, base_fee + priority_fee).max_fee and actual fee to the sender.gas_limit must exceed expected execution cost; unused gas is refunded (minus intrinsic cost).MEV (Maximal Extractable Value): extra profit a block builder or validator can earn by choosing how to order, include, or exclude transactions.
Every 12 seconds, one validator is selected to propose a block. Here is the sequence:
engine_forkchoiceUpdatedV* with payload attributes, telling its local EL: “start building a block.”engine_getPayloadV*, wraps it into a Beacon block (adding attestations, slashings, sync committee data), and signs it.engine_newPayloadV*, which re-executes the transactions and returns VALID/INVALID/SYNCING.eth/66, snap/1).eth: NewBlock, NewBlockHashes, Transactions, GetBlockHeaders, GetBlockBodies.snap: GetAccountRange, GetStorageRanges, etc. for fast state sync.MEV is the extra profit a block producer (builder or validator) can earn by choosing how to order, include, or exclude transactions in a block.
Arbitrage – exploit price gaps between DEXes.
Liquidations – seize undercollateralized loans.
Sandwich attacks – front/back-run a user’s swap.
Censorship/delay – withhold transactions for advantage.
DeFi terms: DEX = decentralized exchange (e.g. Uniswap). DAI = USD-pegged stablecoin. Aave = decentralized lending protocol.
Next: we look at what runs inside those execution payloads – smart contracts and Solidity.

The Ethereum Network — Army Cyber Institute — April 9, 2026