[en] The quantization of electrodynamics in terms of transverse physical variables is accomplished. At all the steps of the theory construction: 1) the choice of transverse variables, 2) the choice of energy-momentum tensor, 3) quantization, 4) the Feynman diagram description the manifest gauge and relativistic invariance is preserved. For the transverse variables the relativistic-invariant self-energy of the electron is calculated. The results completely solve the problem of renormalization of physical quantities on the mass shell for the physical variables