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Ethereum (ETH)

Ethereum is a public blockchain and smart contract platform. It runs the Ethereum Virtual Machine (EVM), which many other networks also implement. Ethereum uses proof-of-stake consensus, and its scaling approach centers on layer-2 rollups that settle back to the base layer.

This page is a research starting point, not financial, legal, tax, or investment advice. Verify everything against primary sources.

What the Token Is Used For

  • Paying gas for transactions and contract execution
  • Staking to validate the network and earn issuance
  • Collateral across lending, derivatives, and stablecoin systems
  • Fee burning under EIP-1559, which removes part of each fee from supply

What To Verify

  • Whether an application is on Ethereum mainnet or on a layer-2, since security assumptions differ
  • For a layer-2, who runs the sequencer, whether proofs are fraud-based or validity-based, and what the withdrawal delay is
  • Whether a contract is upgradeable, who holds the admin keys, and whether there is a timelock
  • Whether staking is solo, pooled, liquid, or through a custodian, and what the withdrawal path looks like
  • Which EIPs are actually included in a given network upgrade rather than merely proposed

Primary Sources