Understand Beacon Chain & Its impact in 1 Minute

Let’s think a person buys an iPhone 13 this year but after a few months, Apple company launched new iPhone 13 pro max with a better camera, features, and processor.

As we all know Change is the rule of nature. A few years ago Ethereum is a better blockchain network than others. But in today’s world, lots of blockchain networks are far better than Ethereum.

Now Ethereum wants to upgrade itself with a new mechanism, better features, stability, and upgradability. For that Ethereum team worked on the Beacon blockchain.

Now you think

• What is Beacon Blockchain?
• What is the impact of Beacon?
• Is it change completely Ethereum that we use today?
• And most important What will happen to our Ethereum crypto investment? Is the Ethereum coin will go down?

So, Read this article this the end, here we will discuss Beacon in very simple language that is understandable by every normal person.

Recommended: The Game of NFT: Why People Buy it

What does the Beacon Chain do?

The Beacon Chain is a ledger of accounts used to coordinate and conduct a network of stakers. Currently, the beacon is not quite like the Ethereum Mainnet. The beacon chain is not used for transactions and smart contract interactions.

Beacon has come up with the new consensus mechanism (or “consensus layer”) that will soon replace Proof-of-Work mining in Proof-of-Stake, and will bring with it a number of improvements.

They are working towards a secure, environmentally friendly, and scalable Ethereum based on the Beacon Chain, but its role will change over time.

Beacon Chain Impact

Introducing staking

With the help of Beacon, Chain Ethereum can move from the “Proof of work” to the “Proof of stake“ consensus mechanism. This blockchain network is highly advanced that helps to keep Ethereum secure. Their goal is to make Ethereum a healthier ecosystem while earning you ETH in the process.

In practice, you need to stake your ETH token in order to activate validator software. As an ETH stakers, you will run node software that helps to validate transactions and mine new blocks in the Network.

Proof of stake is also mining new blocks but in different many ways. Mining requires large up-front expenditures in the form of energy consumption and powerful hardware, which promotes centralization and economies of scale. Moreover, mining does not require the locking up of assets as collateral, which limits the protocol’s ability to punish bad actors after an attack.

Ethereum’s transition to proof-of-stake will significantly make it more secure and decentralized by comparison. The security of the network depends on the participating people if more people will participate in the network, that makes it more secure and decentralized from attacks it becomes.

The Merge and the end of the mining

The main Beacon Chain is currently an offshoot chain from the mainnet chain, and for a period of time, there has been an upcoming plan to swap out the current proof-of-work system on the execution layer of the mainnet chain and replace it with the proof-of-stake protocol the Beacon Chain offers.

This process is called “The Merge” because it’s the process of combining the new consensus layer with the existing execution layer and turning off mining.

The merger will have an immediate and significant impact on the carbon footprint of the Ethereum network, paving the way for future scalability upgrades such as sharding.

Setting up for sharding

When Mainnet merges with the Beacon Chain, the next upgrade will add sharding to the network.

The benefit of proof-of-stake is that, for each network that employs it, there will be a registry of approved block producers who will have a set stake. This set-up allows for the division and conquering of those who have specialized jobs and responsibilities, making the process more manageable.

Contrast this with proof-of-work systems, where miners have no responsibility to the network and could turn their node software off permanently and stop mining at any time without repercussions. There is also no registry of known block proposers, and no reliable way to split up network responsibilities safely.

Frequently Asked Questions

Question: Is it change completely Ethereum that we use today?

Ans. No, the Beacon chain does not change anything in today’s Ethereum. It only helps to convert proof-of-work into proof-of-stake. It will coordinate the network, serving as the consensus layer. It is essential for scalability, more security, and upcoming upgrades, such as sharding.