What is Berachain? š»āļø
Berachain is a Layer 1 blockchain that combines EVM-identical compatibility with an innovative Proof-of-Liquidity (PoL) consensus model. This unique architecture enables Berachain to swiftly adopt Ethereum upgrades, such as Dencun, while utilizing unmodified EVM clients like Geth and Nethermind. By aligning the incentives of validators, protocols, and liquidity providers, PoL enhances both network security and liquidity efficiency.
Originally launched as the NFT project Bong Bears, Berachain has since evolved into a formidable player in the blockchain space.
How Does Proof Of Liquidity Work?
Proof of Liquidity (PoL) is a unique consensus mechanism that sets Berachain apart from traditional systems like Proof of Stake (PoS). In PoL, participants are rewarded not only for securing the network but also for providing liquidity. Letās break it down.
With Proof of Stake (PoS), validators stake tokens to validate transactions and help secure the network. In return, they earn rewards based on their staked assets. However, Proof of Liquidity (PoL) introduces a new dynamic. Validators not only stake tokens but also contribute liquidity to decentralized exchanges (DEXs) and liquidity pools. Rather than just locking up tokens, PoL validators actively use their assets to facilitate trades within the network. This dual function makes Berachain more efficient while maintaining security. Validators earn rewards both from their staking efforts and from trading fees generated by the liquidity they provide. For more information about Berachain, please refer to the official documentation here
Understanding the Functions of Berachainās Tokens
Berachain operates on a tri-token system consisting of $BERA, $BGT, and $HONEY:
$BERA: Serves as the gas token for transactions.
$BGT: Functions as the governance token.
$HONEY: Acts as the native stablecoin.
Built on the BeaconKit framework and utilizing CometBFT consensus, Berachain offers both modularity and scalability. This makes it an ideal platform for developers seeking low-cost and high-speed blockspace for their applications.
So, When Will Berachain Be On Magic Eden?
As of now, Berachain is in its testnet phase, with the mainnet launch expected soon. Once launched, it will be supported on Magic Eden. For the latest updates, please follow us on our official X account.