Discover the competitive advantage of BeraChain, an advanced EVM-compatible blockchain built on Proof-of-Liquidity consensus. Learn about its innovative features, core principles, and how it addresses the challenges of Proof of Stake, offering new opportunities in DeFi. Supported by OriginStake for secure and profitable staking.
What is BeraChain?
BeraChain is a high-performance blockchain, compatible with the Ethereum Virtual Machine (EVM), and built on the innovative Proof-of-Liquidity (PoL) consensus mechanism. This unique consensus model aligns network incentives, fostering a strong interaction between BeraChain validators and the ecosystem’s projects. The technology behind BeraChain is based on Polaris, a robust framework for creating EVM-compatible chains, utilizing the CometBFT consensus engine.
By leveraging the Polaris framework and CometBFT, BeraChain supports Ethereum’s smart contract operations while introducing additional features for decentralized applications (dApps). Known as an “enhanced EVM-compatible blockchain,” BeraChain combines EVM compatibility with advanced functionalities, making it a compelling choice in the blockchain sector. Its design, supported by the Cosmos-SDK, allows for flexibility and diversity, catering to developers and users seeking advanced and efficient blockchain solutions.
Discover more about: Berachain
Core Principles of BeraChain
Liquidity Fragmentation Resistance
DeFi building blocks (AMM, Perps, Lend) and pools are integrated into the chain and provided by validators.
Pressure Application
Validator-driven network emission directs towards building decentralized dApps on BeraChain.
High Accessibility
VM modules and interactability are built at the intersection of EVM and the Cosmos ecosystem.
Core Technology of BeraChain
BeraChain is optimized for DeFi as a Layer 1 blockchain, possessing specific mechanisms conducive to thicker liquidity layers compared to typical Layer 1s like Cosmos or Ethereum.
Proof of Liquidity
Workflow within BeraChain BeraChain allows users to stake various types of assets, including L1 tokens (wBTC, wETH), stablecoins (USDC, USDT), and DeFi blue-chip tokens (yet to be announced) into consensus vaults to contribute to network security. Each token has a different stake weight, and validator rewards are determined accordingly, opening up secondary markets. When users stake these tokens through validators, BeraChain pairs them with the project’s $HONEY stablecoin on DEX platforms, making the staker an LP. Thus, users receive rewards from staking and additional transaction fees from AMMs, creating abundant liquidity.
Accepted Asset Types for BeraChain
Polaris EVM
BeraChain’s EVM compatibility is achieved through the Polaris EVM library, providing an improved EVM experience over Ethereum’s basic features. Polaris Ethereum allows developers to create precompiles (EVM functions activated by smart contracts) and custom modules for more efficient and powerful smart contracts.
CometBF
CometBFT ensures safe and consistent replication of applications across multiple computers. The system maintains security as long as fewer than one-third of the machines fail, and consistency is ensured by all machines accessing the same transaction log and computing the same state. This replication type is crucial for decentralized systems, playing a significant role in the fault tolerance of various applications, from currency units in the chain to infrastructure coordination.
Oracle
BeraChain introduces a fast, accurate, and native oracle provided by Skip Protocol’s Slinky module. Operating on the testnet, BeraChain’s oracle includes both Cosmos and EVM precompile modules. Data streams provide direct prices and transaction pairs, including ATOM/USDT, BTC/USDC, ETH/USDC, TIA/USDT, and USDC/USDT, sourced from Coingecko, Coinbase, and OKX. Validators can contribute price pairs to the oracle or use default prices from providers.
Cosmos SDK
The core architecture behind BeraChain is the Cosmos SDK, widely used across blockchains including Osmosis, dYdX, Celestia, and many others.
Competitive Advantage of BeraChain
Proof of Liquidity addresses the first issue of Proof of Stake through two mechanisms:
- Delegated Token (BGT) is separated from the chain’s gas token (BERA).
- The only way to earn new BGT is by providing liquidity to BEX.
This ensures that BERA liquidity on the chain is more abundant. Providing additional liquidity is encouraged as it is the sole mechanism to earn governance tokens BGT.
Inflation Dispersal
Issuing new BGT to liquidity providers helps address the second issue of Proof of Stake, which is concentrated staking liquidity. With BeraChain, staking rewards are distributed to multiple participants in the market performing regular activities on the chain, ensuring fairer distribution than traditional Proof of Stake networks. This mechanism attracts both whales and retail players.
Protocol and Validator Balance
Proof of Liquidity encourages protocols and validators to work together:
- Validators boost a protocol’s liquidity pool through BGT.
- Protocols assist validators in accumulating BGT stake through incentives.
Conclusion
BeraChain addresses the issues of Proof of Stake through Proof of Liquidity while opening up new opportunities for DeFi. The integration of a fast and accurate oracle along with Cosmos SDK expands BeraChain’s capabilities, making it a notable choice for blockchain projects. BeraChain’s competitive advantage comes from its unique consensus mechanism and careful consideration of inflation management, ensuring fairness and sustainability. Collaboration with OriginStake provides maximum safety and benefits for network participants. BeraChain promises to be a significant competitor in the blockchain and DeFi space.
About OriginStake
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