What is a Blockchain Network?
Quick Definition
A blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Full Definition
While a blockchain is the underlying ledger, a blockchain network is the live system that operates it: the validators, nodes, protocols, and participants that collectively maintain consensus on the state of the ledger. Different blockchain networks have different architectures, transaction speeds, costs, levels of decentralization, and security profiles.
Why network choice matters
The choice of blockchain network affects everything from how fast and cheap transactions are, to which wallets and exchanges support the token, to the overall security and reliability of the system. Major networks include Ethereum (the most widely used for tokens and smart contracts), Layer 2 networks such as Arbitrum, Optimism, and Base (which offer faster, cheaper transactions while inheriting Ethereum's security), and alternative Layer 1s like Solana.
Which networks Steady runs on
STDY is available on Ethereum and Arbitrum. These are two well-established, institutionally recognized blockchain networks with strong security track records and deep liquidity ecosystems. Steady selected these networks specifically for their security, reliability, and broad compatibility with institutional-grade wallets, custodians, and exchanges.
Related Terms
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Blockchain
ReadA blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Ethereum
ReadEthereum is the most widely used public blockchain for smart contracts, tokens, and decentralized applications.
Layer 1 / Layer 2
ReadLayer 1 refers to a base blockchain network like Ethereum or Bitcoin; Layer 2 refers to networks built on top of a Layer 1 to improve scalability, speed, and cost efficiency.
On-chain
ReadOn-chain refers to processes, transactions, or data that are recorded directly on a blockchain.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
Counterparty Exposure
ReadCounterparty exposure refers to the risk that another party, such as a bank, custodian, broker, or service provider fails to fulfill its obligations, potentially affecting the assets or funds it holds.
Custodial vs. Non-Custodial
ReadCustodial means a third party holds the private keys to your assets on your behalf. Non-custodial means you hold your own keys and control your own assets directly.
Custody
ReadCustody is the safekeeping of assets (digital or traditional) by an institution or system responsible for protecting them on behalf of the owner.
DeFi (Decentralized Finance)
ReadDeFi refers to financial services and applications built on blockchain technology, operating through smart contracts without traditional intermediaries.
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