Beacon Chain was introduced after the Merge on 15 September 2022. After its launch, the Proof-of-Work was replaced by the Proof-of-Stake protocol. This merge was much needed because the users faced several issues with the previous update. After the merger, users' trading experience on this network has improved tremendously. This blog will tell you all the details about the Merge and what changes were faced after the update.
Impacts of Beacon Chain
The following are the impacts that were made after the introduction of the Beacon Chain:
- The feature of Staking was introduced
With the help of Beacon Chain the previously prevailed Proof-of-Work was changed to Proof-of-Stake. And now the validators can earn more ETH as rewards in return for validating the transactions. Though the purpose of Staking is similar to the mining process. The work of the validator is to verify all the transactions and then forward them as approved.
The mining process proved to be costly as the resources involved in the process were expensive. It required high-power machines, and high voltage electricity which would increase the economic cost of validating a transaction.
- Setting up of Sharding
After the merging of Ethereum Mainnet with Beacon Chain the scaling of the Ethereum network has increased. The blockchain has divided its blockchain into different 62 blocks that will process the transaction separately. This has reduced the processing time of a single transaction on a blockchain. The responsibility is divided among the validators to reduce their burden.
- Penalty and Reward System
There is a reward system in which those validators will be awarded who have made good progress in their work. But the reward will be given after the scrutiny of the work done by them has been made. And if they found any mistake in the work then they can also be charged for the penalty.
Some Supported Wallets
The pre-requisite of trading on Beacon Chain or any other network is that you will have to create an account on one of the Crypto wallets available. And if you have already decided to trade on Beacon Chain then you must know the various platforms on which you can create your wallet account that supports Beacon Chain. Given below is the list of it:
- Ellipal Wallet
- Math Wallet
- Trust Wallet
- Turbi Wallet
- Ledger Wallet
- Coinomi Wallet
- TokenPocket Wallet
- Zengo Wallet
- Trezor
Though it is not the complete list of wallets. And if you want to know the full list of the supported wallets then refer to their official website.
The Bottom Line
In this blog, we discussed how the Merger proved advantageous for the traders and their experience was being improved. Now since there is a decrease in the cost of validating the transactions by the validators, the network fees charged by it have also been reduced. We hope that the blog of Beacon Chain has provided you with all the basics that a user should know about.