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'Eth2' was a phrase employed to explain a list of Ethereum protocol updates, including the network's transition to Proof of Stake. This phrase has since been deprecated in favor of the phrase 'consensus layer'.

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During its PoW section, the Ethereum network utilised the hash algorithm Ethash, a modified Variation with the Dagger-Hashimoto algorithm. Ethash was built to be memory-really hard to avoid the usage of ASICs and persuade the decentralization of mining. However, the Ethash algorithm was criticized for its substantial Electricity usage and its reliance on GPU mining, which may result in centralization.

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