Question: Is a “history rollback” possible on Ethereum?

Answer: It is extremely unlikely, but theoretically only conceivable in the event of an extreme consensus incident and coordinated actions across the ecosystem. Under normal conditions, Ethereum is designed so that finality and consistency are robust, and history changes are exceptional.

Question: What is “finality” and why does it matter?

Answer: Finality is the point after which a block becomes practically irreversible at the consensus level. For investors, this means lower chain reorganisation risk and more predictable settlement (especially for large transfers and exchange operations).

Question: What is “censorship risk” and how can it show up on Ethereum?

Answer: It is the risk that some block producers systematically do not include certain transactions (due to sanctions, compliance constraints, or external pressure). In practice, this can mean confirmation delays for specific addresses/contracts and is an important topic when assessing the network’s “neutrality”.

Question: What is a nonce and what is it for?

Answer: A nonce is an account’s transaction counter. It enforces transaction ordering and protects against replaying the same transaction again.

Question: How does block confirmation work under Proof-of-Stake?

Answer: In PoS, blocks are proposed and attested by validators who have posted a stake. The network selects block producers according to consensus rules, and finalisation makes the history progressively “less and less reversible”.

What is Ethereum (ETH)

Ethereum is a decentralised Layer-1 blockchain platform for smart contracts and dApps; ETH is used to pay network fees (gas) and as the network’s economic resource.

Launch 2015-07-30 Ethereum Mainnet

Who created it

Vitalik Buterin; co-founders / early founders: Gavin Wood, Joseph Lubin, Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, Jeffrey Wilcke.

Why it was created

ETH was created as the native token of the Ethereum network to pay fees (gas) for transactions and the execution of smart contracts. It is also required for network security: under Proof-of-Stake, validators stake ETH, earn rewards, and can lose part or all of their stake for rule violations. In addition, ETH is the core economic base asset of the broader Ethereum ecosystem.

How it’s used

Paying transaction fees and smart-contract execution costs (gas)
Staking/validating to secure the network
DeFi: DEXs, lending/borrowing, derivatives, stablecoins
Token issuance and infrastructure for crypto projects
NFTs and digital rights/collectibles
DAOs and on-chain governance/treasuries
Payment asset within the ecosystem and via cross-chain bridges
Collateral in protocols and applications

Risks

High volatility: ETH can experience sharp price drops/spikes due to market cycles, news, and liquidations in derivatives markets.
Protocol technology risk: critical bugs in clients/protocol, consensus disruptions, or network incidents are theoretically possible (as with any complex infrastructure).
“Monetary policy” change risk: ETH issuance and burning depend on protocol rules; since EIP-1559, part of fees is burned, so supply is dynamic rather than fixed.
Lower “value accrual” risk: if L1 activity and fees decline (e.g., due to migration to L2), the scale of fee burning changes — affecting ETH’s economics because burning is directly tied to network usage.

FAQ

Question: Is a “history rollback” possible on Ethereum?: Answer: It is extremely unlikely, but theoretically only conceivable in the event of an extreme consensus incident and coordinated actions across the ecosystem. Under normal conditions, Ethereum is designed so that finality and consistency are robust, and history changes are exceptional.
Question: What is “finality” and why does it matter?: Answer: Finality is the point after which a block becomes practically irreversible at the consensus level. For investors, this means lower chain reorganisation risk and more predictable settlement (especially for large transfers and exchange operations).
Question: What is “censorship risk” and how can it show up on Ethereum?: Answer: It is the risk that some block producers systematically do not include certain transactions (due to sanctions, compliance constraints, or external pressure). In practice, this can mean confirmation delays for specific addresses/contracts and is an important topic when assessing the network’s “neutrality”.
Question: What is a nonce and what is it for?: Answer: A nonce is an account’s transaction counter. It enforces transaction ordering and protects against replaying the same transaction again.
Question: How does block confirmation work under Proof-of-Stake?: Answer: In PoS, blocks are proposed and attested by validators who have posted a stake. The network selects block producers according to consensus rules, and finalisation makes the history progressively “less and less reversible”.