Plywood is a type of engineered wood made from thin sheets of wood, called plies or wood veneers. The layers are glued together, each with its grain at right angles for greater strength. There are usually an odd number of plies, as the symmetry makes the board less prone to warping. The adhesives used in plywood have become a point of concern. Both urea formaldehyde and phenol formaldehyde are carcinogenic in very high concentrations. As a result, many manufacturers are turning to low formaldehyde emitting glue systems, denoted by an "E" rating ("E0" possessing the lowest formaldehyde emissions). Plywood produced to "E0" have effectively zero formaldehyde emissions.
A common reason for using plywood instead of plain wood is its resistance to cracking, shrinkage, twisting/warping, and its general high degree of strength. In addition, plywood can be manufactured in sheets far wider than the trees from which it was made. It has replaced many dimensional lumbers on construction applications for these reasons.
Source: Wikipedia