Beacon Chain Definition
The Beacon Chain is a Proof of Stake (PoS) blockchain that will act as the base layer for Ethereum’s multi-tiered structure with the rollout of Ethereum 2.0. It is the first upgrade in Ethereum’s shift from a Proof of Work (PoW) to a PoS consensus mechanism.
Beacon Chain Key Points
- The Beacon Chain is a PoS blockchain, central to Ethereum’s scalability upgrades.
- It will manage the network’s validators and keep track of their PoS protocol.
- Its implementation represents the first phase of the Ethereum 2.0 upgrade.
- The Beacon Chain does not handle accounts, smart contracts, or execute transactions.
What is the Beacon Chain?
The Beacon Chain is referred to as Ethereum 2.0’s heartbeat. While it does not replace the existing Ethereum blockchain, it plays an essential role in the system’s scalability and security updates. The Beacon Chain is also responsible for the PoS system, including the tracking of validators and their stakes.
Why does the Beacon Chain matter?
The Beacon Chain is crucial because it provides the foundation for many of Ethereum’s upcoming upgrades. With the rollout of Ethereum 2.0, it is Ethereum’s first step in migrating from PoW to PoS, a transformative shift that promises increased speed, scalability, and energy efficiency.
When was the Beacon Chain introduced?
The Beacon Chain was introduced and launched live on December 1, 2020, marking the beginning of Ethereum 2.0’s multi-year upgrade roadmap.
Who benefits from the Beacon Chain?
The main beneficiaries of the Beacon Chain are Ethereum users, developers, and validators. With the completion of the Beacon Chain launch, Ethereum gets a boost in terms of scalability and security – leading to faster, lower-cost transactions; while validators get a chance to earn rewards by participating in the network consensus mechanism.
Where does the Beacon Chain operate?
The Beacon Chain operates within the Ethereum ecosystem. It runs parallel to the original (Eth 1.0) blockchain until it becomes fully functional as a PoS blockchain, after which they will be merged.
How does the Beacon Chain work?
In the Beacon Chain, validators are chosen to propose and attest blocks based on the PoS mechanism. Validators need to deposit 32 ETH to a deposit contract to become part of the network. The more stakes a validator has, the more chances they have to be chosen to validate transactions and earn rewards. The Beacon Chain records and manages the validators and their stakes.
