Introduction
On 1 December 2020, a new Ethereum blockchain was created using a novel form of consensus called proof-of-stake (PoS). The new blockchain is called the Beacon chain. The Beacon chain is itself a separate entity from the Proof-of-Work (PoW) Ethreum mainnet. The Beacon chain is designed to eventually merge with the PoW mainnet, with ETH holders able to lock their funds into the PoS beacon chain and start staking and earning block rewards. The Beacon chain will have some initial challenges to overcome but all indications are that it’s on track to become the best version of Ethereum yet!
On 1 December 2020, a new Ethereum blockchain was created using a novel form of consensus called proof-of-stake (PoS).
On 1 December 2020, a new Ethereum blockchain was created using a novel form of consensus called proof-of-stake (PoS). The Beacon chain is an entirely separate blockchain from the mainnet, which also uses PoS as its consensus mechanism.
As with any other PoS system, miners who provide valid blocks on their respective blockchains are rewarded with transaction fees and/or newly minted coins. In this case, however, there are no miners involved in generating blocks on the Beacon chain: instead they’ll be selected by market forces via voting mechanisms like staking pools oracles.
The new blockchain is called the Beacon chain.
The Beacon chain is a new blockchain that will be based on the Ethereum mainnet. It will use proof-of-stake (PoS) consensus, which means that users have to stake their coins with the network in order to participate in the network’s consensus mechanism.
The Beacon chain was created as an extension of Ethereum and has been designed specifically for financial applications such as cryptocurrency exchanges and other decentralized applications (dApps). It’s important not to confuse this new blockchain with Ethereum itself; rather than being an independent project or fork of Ethereum, it operates as another layer on top of ETH’s existing code base. This means that anyone who holds ETHs will also own shares in this new blockchain!
The Beacon chain is itself a separate entity from the Proof-of-Work (PoW) Ethreum mainnet.
The Beacon chain is itself a separate entity from the Proof-of-Work (PoW) Etherum mainnet. The block time is only 10 seconds, which means that it can process more transactions per second than either Bitcoin or Ethereum.
The Beacon chain has been designed to be compatible with existing smart contracts and DApps on the Ethereum mainnet, so you can use them on both networks without any changes in coding or development efforts.
The Beacon chain is designed to eventually merge with the PoW mainnet, with ETH holders able to lock their funds into the PoS beacon chain and start staking and earning block rewards.
The Beacon chain is designed to eventually merge with the PoW mainnet, with ETH holders able to lock their funds into the PoS beacon chain and start staking and earning block rewards.
In this way, we allow for a gradual migration from Ethereum’s proof-of-work model to one where miners only need to stake their tokens (and not spend them on expensive hardware). This will allow miners who are currently mining ether on GPUs or FPGAs an opportunity to switch over without having their current hardware cost invalidated. In addition, it would also provide an incentive for new users who don’t have access yet because they’re waiting until later stages of development before acquiring this technology.”
The Beacon chain will have some initial challenges to overcome, but all indications are that it’s on track to become the best version of Ethereum yet.
You’re probably wondering, “What is the Beacon chain?”
It’s a new version of Ethereum that was created after the mainnet was launched. The Beacon chain will have some initial challenges to overcome, but all indications are that it’s on track to become the best version of Ethereum yet. If you hold ETH in your wallet on August 30th, 2025 then you will be able to lock your funds into the beacon chain and start staking there instead of on the mainnet (which has its own set of problems).
The problem with this approach is that if someone were to steal all my ETH from my wallet then I wouldn’t be able to get them back because they’re locked up inside their own blockchain! This means we need some sort of way for me as an owner/user make sure those coins *belong* *to me*.
For users of Ethereum, the Beacon Chain is an exciting development.
In the future, ETH holders will be able to lock their funds into the PoS beacon chain and start staking and earning block rewards. This process is similar to how Proof of Stake (PoS) works in other cryptocurrencies such as Dash or NEM.
The Beacon chain was created by Ethereum developer Vlad Zamfir, who wanted to create a new blockchain that could eventually merge with Ethereum’s mainnet after being fully upgraded.
Conclusion
The Beacon chain is an exciting development for Ethereum. It will finally give users who hold ETH a chance to earn block rewards by staking their tokens on the mainnet. The main challenges to overcome include security and efficiency, but all indications are that these problems can be solved with future updates.