ETH Used for Transaction Fees and Proof-of-Stake Security on Ethereum Network

Ethereum's native asset, ETH, is used to pay transaction fees on the network and participate in validation through staking.

The fee for transactions on the Ethereum mainnet is paid in ETH, which covers the calculations performed and network resources used. However, having a token like USDC in your wallet does not mean you have the necessary ETH to cover the network fee.

ETH is also used for proof-of-stake security, where validators undertake block proposal and validation tasks. Running your own validator, staking through a service, or obtaining liquid staking tokens are different structures, each with varying commission rates, withdrawal periods, contract risks, and operator risks.