Beacon Chain is a fundamental component of the #Ethereum 2.0 upgrade, also known as Ethereum Serenity. It serves as the backbone of the new Ethereum network, providing crucial functions that enable the system to scale and become more efficient.
In simple terms, Beacon Chain is a blockchain that coordinates and manages the Ethereum 2.0 network. It acts as a central hub for validators, who are responsible for validating transactions and securing the network. Validators are required to lock up a certain amount of Ether as collateral to participate in the consensus process.
One of the key features of Beacon Chain is its use of a new consensus algorithm called Proof of Stake (PoS). Unlike the current Ethereum network, which uses Proof of Work (PoW) to validate transactions, Beacon Chain uses PoS to achieve consensus. This means that validators are chosen to create new blocks and validate transactions based on the amount of Ether they have staked, as well as their reputation within the network.
Beacon Chain also introduces shard chains, which are additional chains that run in parallel to the main Ethereum chain. These shard chains help to increase the scalability of the network by allowing multiple transactions to be processed simultaneously.
In addition to its role in managing validators and shard chains, Beacon Chain also handles other important tasks such as managing network upgrades, maintaining the network's health, and organizing the Ethereum 2.0 roadmap.
Overall, Beacon Chain is a critical component of the Ethereum 2.0 upgrade, providing the infrastructure and functionality needed for Ethereum to scale and become more efficient. Its introduction marks a significant step forward in the evolution of the Ethereum network, bringing improved scalability, security, and sustainability to the world of decentralized finance and applications.
