What is a Ethereum?
Quick Definition
Ethereum is the most widely used public blockchain for smart contracts, tokens, and decentralized applications.
Full Definition
Ethereum launched in 2015 and pioneered the concept of programmable money. While Bitcoin established blockchain as a way to transfer value, Ethereum extended that model to support arbitrary programs (smart contracts) that run on the blockchain itself. This unlocked an entire ecosystem of applications: stablecoins, decentralized exchanges, lending protocols, NFTs, DAOs, and more.
Today, Ethereum is the largest smart contract platform by ecosystem size, developer activity, and value secured. It's the foundation that most of the stablecoin and DeFi industry has been built on, and it remains the default network for institutional-grade digital asset infrastructure.
Why Ethereum matters for stablecoins
Most major stablecoins launched on Ethereum, and many continue to operate primarily on the network. The combination of network security, deep liquidity, institutional acceptance, and broad wallet and infrastructure support makes Ethereum a natural home for stablecoins. It's also the network that institutional custodians, exchanges, and analytics providers have invested most heavily in supporting.
The trade-off has historically been transaction costs. As the network has grown, gas fees on Ethereum mainnet have become expensive for smaller transactions, which is one of the reasons Layer 2 networks (like Arbitrum) have become increasingly important. These provide the same benefits and infrastructure while offering near-zero transaction costs.
Steady on Ethereum
STDY is available on Ethereum, where it operates as a standard ERC-20-compatible token with built-in rebase functionality. Ethereum is one of the two networks on which Steady operates, alongside Arbitrum, selected for its security, deep liquidity, and broad institutional compatibility.
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 Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Gas Fees
ReadGas fees are the transaction costs paid to a blockchain network to execute transactions and run smart contracts.
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.
Smart Contract
ReadA smart contract is a self-executing program that runs on a blockchain and automatically enforces the terms of an agreement when specific conditions are met.
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.
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.
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.
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