An in-depth analysis of Berachain: exploring its Layer 1 blockchain technology and potential impact

Berachain is an EVM-compatible Layer1 blockchain built on the Cosmos SDK. This article will give you a comprehensive understanding of the fundamentals of Berachain.

Written by: Teahouse Waiter

Berachain is an EVM-compatible Layer 1 blockchain built on the Cosmos SDK and protected by the Proof of Liquidity consensus mechanism. The Berachain token economy introduces the Bera network with a three-token system for the first time, with the network gas token BERA, the ecological algorithm stable currency HONEY and the non-transferable Bera governance token BGT. The Berachain ecosystem already has over $250 million in committed total locked value,

The following is a Q&A format combined with chatgpt by Chain Teahouse to fully understand the fundamentals of berachain.

1. Which track field does Berachain belong to? What are the projects similar to it?

Berachain belongs to the track in the field of blockchain technology and encryption. It is a high-performance EVM-compatible blockchain that adopts a Proof-of-Liquidity (PoL) consensus mechanism and is designed to solve key challenges faced by decentralized networks.

Projects similar to Berachain include:

1. Ethereum: As the most well-known EVM blockchain, Ethereum provides an ecosystem of smart contracts and decentralized applications (dApps).
2. Binance Smart Chain (BSC): BSC is an EVM-compatible blockchain designed to provide low-cost trading and smart contract functions.
3. Avalanche (AVAX): Avalanche is an extensible platform that supports EVM compatibility and custom subnetworks, designed to provide high-performance decentralized financial applications.
4. Polygon (MATIC): Polygon is an EVM-compatible Layer 2 solution designed to provide scalability and interoperability to support the development of the Ethereum ecosystem.

These projects are competing in the blockchain technology and crypto space, aiming to provide high-performance, scalable, and interoperable solutions to meet the needs of the growing decentralized finance and dApp market.

2. What is the main problem to be solved?

The main problems Berachain solves include:

1. High-performance blockchain needs: Berachain aims to provide a high-performance EVM-compatible blockchain to meet the needs of the growing decentralized finance and dApp market, while providing scalability and high throughput.
2. Proof-of-Liquidity consensus mechanism: Berachain’s Proof-of-Liquidity (PoL) consensus mechanism aims to solve the problems of liquidity, equity centralization and coordination between protocols and validators to ensure the long-term health and stability of the network .
3. EVM compatibility and interoperability: As an EVM-compatible blockchain, Berachain aims to provide high compatibility with the Ethereum ecosystem, enabling developers and users to migrate dApps and assets more easily and achieve wider interoperability.
4. Decentralized Finance (DeFi) and smart contract applications: Berachain’s technical and economic models aim to promote the development of liquidity, transaction efficiency and smart contracts, and provide a stronger infrastructure for DeFi applications and decentralized financial ecosystems .

In general, Berachain is committed to solving key issues such as performance, consensus, compatibility and application development in the blockchain field, providing users and developers with a more powerful, efficient and reliable blockchain infrastructure.

3. What is the Proof-of-Liquidity consensus mechanism and how is it implemented?

The Proof-of-Liquidity (PoL) consensus mechanism is an innovative consensus mechanism based on liquidity that aims to solve the problems of liquidity, equity centralization, and coordination between protocols and validators in blockchain networks. Specifically, the implementation of the PoL consensus mechanism includes the following key elements:

1. Liquidity Provider (LP) Pool: The PoL consensus mechanism relies on Liquidity Provider (LP) pools, which are used to store digital assets to support transactions and liquidity on the network. Participants in the LP pool can receive rewards as an incentive to provide liquidity.
2. Liquidity mining: The PoL consensus mechanism may include a liquidity mining mechanism, which is to obtain rewards by depositing digital assets into the LP pool. This mechanism encourages users to inject funds into the LP pool, thus increasing the liquidity of the network.
3. Proof of Liquidity: The PoL consensus mechanism may require validators to provide proof of liquidity to prove their contribution to network liquidity. This can be achieved by validators participating in LP pools or providing other liquidity support.
4. Liquidity governance: PoL consensus mechanisms may include liquidity governance, which allows holders to participate in voting on network liquidity and governance decisions.

In general, the PoL consensus mechanism aims to build a decentralized network that can effectively handle liquidity, equity and protocol governance by integrating liquidity providers, liquidity mining, liquidity proof and liquidity governance. This consensus mechanism is designed to promote the long-term health and stable development of the network.

4. What is the main operating principle of Berachain?

Main operating principles:

1. EVM compatibility: Berachain is built on Cosmos-SDK and supports EVM compatibility, allowing it to interoperate with Ethereum smart contracts and tools.
2. PoL consensus mechanism: Berachain’s PoL consensus mechanism achieves network liquidity, equity centralization, and agreement between protocols and verifiers through mechanisms such as liquidity providers, liquidity mining, liquidity proof, and liquidity governance. coordination.
3. Polaris Framework: Berachain built a modular stack using the Polaris EVM framework to easily separate the EVM runtime layer.

In general, the main operating principle of Berachain is high-performance blockchain technology based on EVM compatibility, which combines the PoL consensus mechanism and the Polaris framework to support the development of decentralized finance and smart contract applications, and solve the problems of blockchain Key issues in networking.

5. What is the overall business model and who are the target users?

business model:

1. Blockchain infrastructure services: Provide blockchain infrastructure services with high performance, scalability and high compatibility with the Ethereum ecosystem, including smart contract platforms, decentralized financial support and liquidity solutions, etc.
2. Liquidity mining and rewards: Through the PoL consensus mechanism, users are encouraged to participate in liquidity mining, provide liquidity, and receive corresponding rewards.
3. Developer tools and support: Provide developer-friendly tools, documentation and support so that developers can easily build and deploy decentralized applications and smart contracts based on Berachain.

Target customers:

1. Blockchain developers: Berachain’s target customers include blockchain developers and teams who want to build and deploy decentralized applications, smart contracts, and DeFi projects.
2. Liquidity providers: For those users and institutions who are interested in participating in the blockchain network and obtaining rewards by providing liquidity.
3. Enterprises and projects: Enterprises and projects seeking blockchain infrastructure services with high performance, scalability, and high compatibility with the Ethereum ecosystem.

Overall, Berachain’s business model aims to provide blockchain infrastructure services, liquidity mining rewards, and developer tool support to meet the needs of blockchain developers, liquidity providers, and enterprise projects, serving them Provide more powerful blockchain infrastructure and support.

6. What are the main sources of income for the project?

The main sources of income for the project may include the following aspects:

1. Liquidity mining rewards: Berachain adopts the Proof-of-Liquidity (PoL) consensus mechanism and encourages users to participate in liquidity mining by integrating liquidity providers, liquidity mining, liquidity proof and liquidity governance mechanisms. mine and receive corresponding rewards. Projects can earn a certain amount of income from the liquidity mining process.
2. Blockchain infrastructure service fees: To provide blockchain infrastructure services with high performance, scalability and high compatibility with the Ethereum ecosystem, corresponding service fees may be charged.
3. Developer Tools and Support Charges: To provide developer-friendly tools, documentation and support, fees related to developer tools and support may be charged.
4. Income from cooperation with partners: By cooperating with other blockchain projects, enterprises and partners, you may obtain cooperation income or gain profits through cooperation projects.

In general, Berachain’s main sources of income may include liquidity mining rewards, blockchain infrastructure service fees, developer tool and support fees, and revenue from cooperation with partners.

7. Who are the founding teams of the project, and what are their backgrounds and resumes?

According to the search results, there is relatively little information about Berachain’s founding team members, but the following information can be learned:

1. The founding team members include experienced founders, engineers and researchers who are passionate about designing sustainable economies and DeFi innovation1.
2. The founding team may include a co-founder named Smokey2.

Due to limited information, I am unable to provide more detailed background bios of the founding team members. If you are interested in the background of the founding team members, it is recommended that you check official channels or other reliable sources for more detailed information

8. What are the core investments of the project, and their background and introduction?

According to information from Tracxn, Berachain has conducted 2 rounds of financing, raising a total of US$42 million. The first round of financing was conducted on December 1, 2022, and the latest round of financing was a Series A financing on April 21, 2023, with an undisclosed amount.

Core investors include multiple institutional investors and angel investors. Institutional investors include Polychain, Agile Angel and Hack VC. Angel investors include Zaki Manian, etc.

9.What problems and risks may exist with Berachain?

As an emerging blockchain project, Berachain may face some of the following problems and risks:

1. Technical risks: Blockchain technology itself has certain technical risks, including challenges in security, scalability and performance. Projects require continuous improvement and refinement of technology to address these challenges.
2. Legal and regulatory risks: Blockchain projects may be affected by the laws and regulatory policies of different countries and regions, and may need to face regulatory compliance, privacy protection and other risks.
3. Market competition: Competition in the blockchain industry is fierce, and projects need to compete with competitors in technology, marketing, community building, etc. to ensure the sustainable development of the project.
4. Market liquidity: The liquidity of tokens may be affected by market supply and demand, and there may be risks of price fluctuations and insufficient liquidity.
5. Project execution risk: Project execution capabilities and team stability are also important risk factors. Projects need to maintain stable development and continuous innovation capabilities.

The above risks are some common problems that blockchain projects may face. For Berachain, project parties need to carefully evaluate and respond to these risks to ensure the sustainable development of the project.

10.Who are the official partners of the project?

According to the search results, Berachain’s official partners include:

1. Stakin: Stakin has started operating verification nodes on Berachain’s public testnet2.
2. Polychain Capital and OKX Ventures: Berachain recently completed a $42 million funding round led by Polychain Capital and OKX Ventures

11. What is the current valuation of the project and the amount of financing?

Berachain disclosed its Series A financing on April 20, 2023, with an amount of US$42 million and a valuation of US$420 million

12. Does the founding team have a dark history? What projects have they done before?

According to the search results, Berachain’s founding team members appear under pseudonyms (Smokey the Bera, Papa Bear, Homme Bera, and Dev Bear), so no specific information about their personal histories and previous projects is publicly available.

13. What technological innovations does the project have?

According to Berachain’s official information and related reports, the project claims to have the following technological innovations:

1. Layer 1 Blockchain Technology: Berachain is a Layer 1 blockchain technology designed to provide high performance, low cost, and scalability to support DeFi applications and other blockchain solutions.
2. DeFi Focus: Berachain focuses on the field of DeFi (decentralized finance), aiming to provide users with faster and cheaper transactions and financial services, while supporting various DeFi applications and protocols.
3. Cross-chain interoperability: Berachain may have cross-chain interoperability, enabling it to interoperate with other blockchain networks, thereby providing users with a wider range of financial and trading options.
4. Smart Contract Platform: Berachain may provide a smart contract platform to enable developers to build and deploy various smart contracts to support diverse decentralized applications.
5. On-chain governance and governance tokens: Berachain may support an on-chain governance model that allows holders to participate in the governance decisions of the network and may own governance tokens for voting and decision-making.