Beacon Chain implements rules created under the Proof-of-Stake (PoS) consensus mechanism. The first phase of Ethereum’s transition to more efficiency and less energy-consuming Proof-of-Stake was with Beacon Chain.
Launched in December 2020, Beacon Chain is the first phase of a series of upgrades to the network, formerly known as Ethereum 2.0, to be more reliable and more sustainable.
Beacon Chain manages and coordinates the Ethereum staker network. It validates data, collects votes, and distributes rewards to block validators, helping to secure the network. Beacon Chain does not radically change Ethereum. It is built in parallel with the execution layer (ETH 1). It is a standalone layer.
Beacon Chain marks the end of mining with The Merge. Tokens issued in the form of mining rewards will no longer be issued, resulting in a net reduction of approximately 90% in ETH issuance.
Role of Beacon Chain
The main role of Beacon Chain is to store data track connections, verifier addresses and states. Beacon Chain manages staked ETH and audits validators.
Beacon Chain also creates validator committees. Beacon Chain is the primary enforcer of Proof of Stake (PoS) protocol rules.
Beacon Chain and Scalability Trilogy
Beacon Chain has laid the groundwork for scaling solutions like The Merge, The Surge, The Verge, The Purge, and The Splurge. These solutions are designed to deal with the Scalability Triad. The Scalability Triad, put forward by Ethereum founder Vitalik Buterin, refers to the three characteristics of the fundamental principles of a blockchain: security, scalability, decentralization, and balancing ability.
The Scalability Triad proposes that in a blockchain, it can only have two essential properties. The trinity consists of Security, scalability and decentralization. The security of a blockchain is vital. Scalability is the ability of a blockchain to handle increased usage. Decentralization is one of the basic principles of Blockchain. The decentralized structure and the absence of intermediaries are its main features.
The reason for making a number of upgrades is to enable Ethereum to process transactions without compromising security and decentralization. These upgrades were carried out to support the transaction load with the increasing transaction volume.
