Why Berachain is the Next Layer1 Blockchain to Watch
Berachain addresses the DeFi liquidity problem with its unique three-token model and PoL consensus mechanism, receiving strong community support and significant capital injection.Original Title: “Why Berachain is the Next Layer 1 Blockchain to Watch”
Author: Pascual Jiménez Velásquez
Translation: Baihua Blockchain
Berachain is a next-generation Layer 1 blockchain aimed at DeFi applications. It addresses liquidity issues in the DeFi space through a unique three-token model and a Proof of Liquidity (PoL) consensus mechanism. With a community culture and innovative technology, Berachain is building a highly secure, decentralized, and scalable blockchain ecosystem.
1. Key Features and Technological Innovations Three-Token Model
BERA: The native token used for paying gas fees and block rewards.
BGT: A non-transferable governance token earned by providing liquidity, used for participating in on-chain governance.
HONEY: A stablecoin pegged to USDC, minted by collateralizing other assets, providing a stable medium for transactions on the platform. Proof of Liquidity (PoL) Consensus Mechanism:
Enhances the security and performance of the network through liquidity providers, liquidity mining, proof of liquidity, and liquidity governance mechanisms. Polaris EVM and Cosmos-SDK: Built on the Cosmos-SDK, integrating specific on-chain functionalities optimized for PoL. The Polaris EVM provides a modular EVM framework, offering an efficient execution environment for smart contracts.
2. Cross-Chain Interoperability
Potential cross-chain interoperability, enabling interaction with other blockchain networks, providing broader financial and trading options.
On-Chain Governance: Supports an on-chain governance model, allowing token holders to participate in network decisions, ensuring fairness and transparency.
Market Popularity and Community Support: Berachain has demonstrated significant market popularity and community marketing capabilities:
Social Media Attention: Nearly 1.04 million followers on Twitter and 50,000 active members on Discord.
Community Projects: Projects like "The Honey Jar" have attracted a large number of users, driving the growth of the Berachain ecosystem.
3. Future Prospects and Competitive Advantages Berachain has unique competitive advantages in the blockchain space
Innovative Model: Its three-token model and Proof of Liquidity (PoL) consensus mechanism resolve the conflict between staking and liquidity.
Market Demand: Following the collapse of Terra, there is a strong market demand for new DeFi stablecoins, and Berachain has the potential to fill this gap.
Funding and Support: Recently completed a $100 million Series B funding round led by well-known institutions such as Brevan Howard Digital and Framework Ventures.
4. Similar Projects
Berachain competes with the following projects in the blockchain technology and cryptocurrency space:
Ethereum: The most well-known EVM blockchain, supporting a wide range of smart contracts and decentralized applications (dApps) ecosystem.
Binance Smart Chain (BSC): An EVM-compatible blockchain that offers low-cost transactions and smart contract functionality.
Avalanche (AVAX): A high-performance platform that supports EVM compatibility and customizable subnets.
Polygon (MATIC): Provides scalability and interoperability as a Layer 2 solution, supporting the Ethereum ecosystem.
With its innovative three-token mechanism and Proof of Liquidity (PoL) consensus, strong community support, and growing market popularity, Berachain shows potential to become a significant Layer 1 blockchain. As the user base and ecosystem continue to grow, Berachain is expected to play a key role in DeFi innovation, becoming a star blockchain in the industry.
