Beacon Chain
The proof-of-stake consensus layer of Ethereum, coordinating validators since December 2020.
What is Beacon Chain?
The Beacon Chain is Ethereum’s proof-of-stake (PoS) blockchain, launched on December 1, 2020, to manage the PoS consensus mechanism. It operates as the coordination layer for validators who stake ETH to secure the network, propose blocks, and attest to their validity.
Fully integrated with Ethereum’s execution layer during The Merge in 2022, the Beacon Chain replaced proof-of-work mining, enabling faster and more energy-efficient transaction processing. It is critical for Ethereum’s security and scalability, supporting validator duties and finality.
Related Terms
Thick Market/Thin Market
A thick market has many participants trading high volumes, ensuring robust information aggregation; a thin market has few participants and low volumes, risking inaccurate predictions.
Collateral
Digital assets deposited by borrowers to secure loans in DeFi lending protocols.
Fed (Federal Reserve System)
The central banking system of the United States, established in 1913 to provide a safe, flexible, and stable monetary and financial system.
FDV
The total potential market capitalization of a digital asset if all tokens in its maximum supply were circulating at the current price.
Federal Open Market Committee (FOMC)
A 12-member committee within the Federal Reserve System responsible for setting U.S. monetary policy, including interest rates and open market operations.
Ask Side
The section of an order book listing all open sell orders, sorted from lowest to highest price.