Berachain is a high-performance blockchain compatible with the Ethereum Virtual Machine (EVM), utilizing the innovative Proof-of-Liquidity (PoL) consensus mechanism. This cutting-edge consensus model aims to align network incentives, fostering strong synergy between Berachain validators and the ecosystem’s projects. Berachain’s technology is built on the Polaris framework, a high-performance blockchain framework that leverages the CometBFT consensus engine.
What is Berachain Proof of Liquidity?
Proof-of-Liquidity (PoL) is a unique consensus mechanism developed by Berachain to address key challenges in decentralized network governance. This model focuses on:
- Systemic Liquidity Building: Enhances efficient trading, price stability, network growth, user adoption, and the effective operation of decentralized applications.
- Stake Centralization Mitigation: Maintains chain integrity, prevents block space manipulation, and avoids monopolistic control.
- Protocol and Validator Alignment: Integrates validators more effectively into the protocol, offering better incentives through liquidity provider (LP) pools, bribes, governance tokens, and more to ensure the chain’s long-term health.
Learn more about: Proof of Liquidity
Berachain’s Mechanism
The PoL consensus mechanism is designed to prevent Sybil attacks by using “consensus” vaults for reward calculations for validators and staking purposes.
Key Operations of PoL:
- Staking: Users stake assets like wETH, wstETH, wBTC, etc., into the consensus vault to delegate to validators. Unlike other blockchains that require native coins, Berachain allows the use of various tokens from different chains.
- Reward Distribution: Each staked token has a specific weight and earns BERA as a reward.
- Security and Decentralization: The diverse token staking mechanism makes it challenging to create multiple fake accounts (Sybil attacks) and ensures network decentralization. However, the project has not yet released a whitepaper to confirm the feasibility of PoL.
How Validators Work on BeraChain
Overview
- Total Validators: 103
- Active Gauges: 13
- BFT Inflation Rate: 18.69%
Validators are crucial for maintaining network security and consensus on Berachain. They are rewarded with BGT for proposing new blocks.
New Blocks
Validators are randomly selected to propose new blocks or validate proposed blocks. The BGT rewards incentivize validators to act honestly and reliably. Validators earn transaction fees and block rewards, providing a financial incentive for network maintenance. Random selection is weighted by the amount of BGT a validator holds.
Emissions
Validators must share their rewards through emissions, where a portion of their awarded BGT is distributed to specific whitelisted liquidity pools via a precompiled contract called Berachef.
Bribes
Bribes are used by validators to incentivize users to delegate BGT to them instead of other validators. A bribe is given each time a validator proposes a new block. However, there is no guarantee that the expected outcome of the bribe will be fulfilled.
Conclusion
In summary, validators are vital to the Berachain network, which operates on the Proof-of-Liquidity (PoL) consensus mechanism. They ensure network security and consensus by proposing and validating blocks. Validators are incentivized with BGT rewards, including transaction fees and block rewards. The selection of validators is weighted based on their BGT holdings. The PoL mechanism enhances security and prevents Sybil attacks by allowing users to stake various tokens. While Berachain has yet to release a whitepaper, validators remain essential for the network’s integrity, decentralization, and liquidity.
About OriginStake
Join us in shaping the future of privacy in Web3 with Namada! Privacy isn’t just a choice for us—it’s at the heart of everything we do.
Embark on this journey with Originstake, one of the pioneering validators on this revolutionary blockchain! Together, let’s redefine privacy and pave the way for a more secure and transparent digital world.
