What is Beacon Chain?
Let's find out Beacon Chain meaning, definition in crypto, what is Beacon Chain, and all other detailed facts.
This blockchain called Beacon chain was introduced on December 1st, 2020. The beacon chain manages and organizes the expanded network of shards and stakers. Moreover, it will coordinate proof-of-stake for Ethereum. The hope is that this will help Ethereum be more secure in the long run.
A beacon chain is also required for establishing shard chains and assigning stakers to check shard chains at random.
The proof-of-stake blockchain is said to be the core of the new Ethereum 2.0 system. It both maintains the system running and handles its users. Like a security guard who is always on the lookout for what is going on around them. To be more specific, validating, scanning, gathering votes, and rewarding.
However, shard chains are used since Beacon Chain can’t run smart contracts.
Ethereum had plans to swap for a proof-of-stake protocol for a while now. Since proof-of-work is known to lack quite a few factors, such as ease of use, centralization, and convenience.
Instead of miners exerting energy certifying blocks, randomly chosen verifiers that have at least a 32 ETH stake, offer alternative blocks that are voted on by other validators.
The rewards go to the verifiers that attest to blocks correctly, nonetheless, the rewards also get taken away from offline users, or individuals that engage in malicious activities.
To administer the proof-of-stake protocol and shards chains, Beacon Chain also has to:
- Take care of the verifiers and their stakes.
- Choose the block proposer for each shard at each stage.
- Add verifiers to groups so that they may vote on proposed blocks.
- Use the laws of consensus.
- Use bonuses.
- Be an anchor place for shards to register their stakes, in order to allow cross-shard transactions.
The proof-of-stake system and the Beacon Chain are both secured. The next step for Ethereum 2.0 is setting-up shard chains. Shard chains will upgrade Ethereum's network to be easier to use, and faster overall.
Besides, Beacon Chain will take control of 64 individual shards.