Understanding the Beacon Chain in Ethereum 2.0
The Beacon Chain is central in Ethereum 2.0, serving as the repository and manager of the validators’ registry while coordinating the shard chains.
The Vital Backbone of Ethereum 2.0
Functioning as a new proof-of-stake blockchain, the Beacon Chain can be metaphorically likened to the backbone of the Ethereum 2.0 system.
Ensuring the system’s vitality and functioning as a conductor orchestrating all participants is vital.
Another apt comparison is that of a towering lighthouse standing above a vast expanse of transaction data.
It diligently scans, validates, collects votes, and rewards validators who accurately attest to blocks. It also deducts rewards for offline validators and penalizes malicious actors by slashing their ETH rewards.
Orchestrating Ethereum 2.0’s Proof-of-Stake Protocol
The primary role of the Beacon Chain is to manage the proof-of-stake protocol itself and oversee the shard chains.
This encompasses various responsibilities such as managing validators and their stakes, nominating block proposers for each shard at every step, and organizing committees of validators to vote on proposed blocks.
In addition, they are implementing consensus rules, applying rewards and penalties, and serving as an anchor point for shard chains to register their states, facilitating cross-shard transactions.
It’s important to note that the Beacon Chain does not support the execution of smart contracts, which is the role reserved for shard chains.
As the coordination mechanism of the new network, the Beacon Chain takes on the crucial tasks of creating and validating new blocks while rewarding validators with ETH for their contributions to network security.
Proof-of-stake has long been part of Ethereum’s roadmap, addressing limitations of proof-of-work blockchains such as accessibility, centralization, and scalability.