More than transfers
Smart contracts execute programmed rules, such as token swaps. Working code does not guarantee a safe or worthwhile product.
FinFly Explains / Crypto
What Ethereum is
Ethereum supports transfers and smart-contract execution. ETH is its native asset, used to pay for computation.
Validation
Ethereum uses proof of stake: validators participate in consensus with ETH at stake. This is not Bitcoin mining.
Separate the risks
Assess the network, application, token and key custody separately. Check contract addresses and wallet permissions; a familiar network name does not validate every application.
Questions
Short answers
Is every Ethereum token ETH?
No. Assets on the network can have different issuers and terms.
Method
Primary sources
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