Cryptocurrency has been able to present an easy to use digital alternative to fiat currencies. Offering frictionless transactions and inflation control, investors have been prudent enough to add these currencies in their diversified portfolios as an asset, as the size of the market does not represent a systemic risk. Cryptocurrency employs the use of cryptography that assures high-security processes and verifies transactions personal to each user. Hence, counterfeiting and anonymous transactions are impossible to achieve. While this revolution is gaining wide acceptance, Ethereum Beacon, a new Ethereum-based cryptocurrency project that aims to ensure scalability, security, and decentralization, leveraging the latest innovations designed by the global Ethereum community and the project’s own team has arrived.
"Cryptocurrency is a type of digital currency that uses cryptography for security and anti-counterfeiting measures. Public and private keys are often used to transfer cryptocurrency between individuals.
As a counter-culture movement that is often connected to cypherpunks, cryptocurrency is essentially a fiat currency. This means users must reach a consensus about cryptocurrency's value and use it as an exchange medium. However, because it is not tied to a particular country, its value is not controlled by a central bank. With bitcoin, the leading functioning example of cryptocurrency, value is determined by market supply and demand, meaning that it behaves much like precious metals, like silver and gold.
Cryptocurrency transactions are anonymous, untraceable and have created a niche for illegal transactions, like drug trafficking. Because the currency has no central repository, law enforcement and payment processors have no jurisdiction over bitcoin accounts. For cryptocurrency supporters, this anonymity is a primary strength of this technology, despite the potential for illegal abuse, as it enables a shift in power from institutions to individuals."
With that being said, Ethereum Beacon aims to be the world computer for the next generation of decentralized applications. To do this, Ethereum Beacon is building a highly scalable new blockchain that will introduce a whole host of advanced solutions, including sharding, a validator-based PoS consensus protocol, and an improved virtual machine, Beacon Assembly.
Now that I have your attention, let’s get right to it.
What exactly is ETHEREUM BEACON?
As depicted above and as indicated on the official website of ETHEREUM BEACON, Ethereum Beacon is a new Ethereum-based cryptocurrency project that aims to ensure scalability, security, and decentralization, leveraging the latest innovations designed by the global Ethereum community and the project’s own team.
Ethereum Beacon aims to be the world computer for the next generation of decentralized applications. To do this, we are building a highly scalable new blockchain that will introduce a whole host of advanced solutions, including sharding, a validator-based PoS consensus protocol, and an improved virtual machine, Beacon Assembly.
The project will resolve the pending network capacity issue of Ethereum without compromising the security of the system. At the same time, it will promote the ideals of distributed democracy through its Proof-of-Stake scheme, which will level the opportunities of all transaction validators, from individual GPU users to large mining operations. This and many other solutions will make EBEA the ultimate programmable money that Ethereum was originally designed to be.
A New Consensus System
Ethereum Beacon will take network capacity to a new level with the introduction of a revolutionary transaction validation system. The central PoS chain – the Key chain - will be responsible for storing and updating the registry of validators. To become a validator, a user will need to make a security deposit, which will minimize the risk of abusive behaviour. The Key chain will also process its own block-by-block consensus and cross-links – sets of confirmations by validators that allow to insert a shard segment into the Key chain. In short, it will be the foundation on which the sharding system is built.
The combination of internal and cross-shard consensus, independent validation within each shard, and a system of deposits will create a fast, efficient, and secure network environment that can easily scale and accommodate dApps of all types. Validators will earn a stable return on their deposit investment, while the transition to PoS will solve the problem of energy waste and achieve real decentralization – free from the hegemony of mining farms.
Sharding – The Most Efficient Way to Scale
In Ethereum Beacon, there is no need for each node to confirm every single transaction. Instead, the network is split into numerous shards – segments of the state that work independently, confirming different transactions and powered by different sets of validators. Shards interact with the Key chain via cross-links – special messages that indicate that the state of a shard with its recently confirmed operations can be safely included into the main chain. Since the number of confirmations is still high, the security will not be compromised in Ethereum Beacon.
Phase Alpha: transition to a new PoS/validation system
Phase Beta: Implementation of Basic Sharding
Phase Gamma: Sharding with EVM/EWASM
Phase Delta: to asynchronous cross-sharding, exponential sharding and beyond
Why You Should Choose Ethereum Beacon?
Ethereum Beacon is a new Ethereum-based cryptocurrency project that aims to ensure scalability, security, and decentralization, leveraging the latest innovations designed by the global Ethereum community and the project’s own team. By working with a smaller network and a more agile development team, Ethereum Beacon will be able to execute the switch from Proof-of-Work to Proof-of-Stake faster and without the hindrances posed by lobbies, such as mining pools and ASIC manufacturers.
Though by itself PoS does not ensure scaling, it will create the necessary infrastructure for the introduction of sharding – a groundbreaking scaling solution that will help increase the transaction processing speed to 1000 tps and beyond. In this White Paper, we provide a detailed overview of how sharding works and how it will be implemented in Ethereum Beacon.
In the next development phase, we will introduce a new runtime environment for decentralized applications based on the W3C-designed WebAssembly. This will further improve the performance of dApps
As a way to acquire early supporters for the testing phase, EBEA tokens will initially be distributed for free to ETH holders, as well as awarded to all bounty campaign participants. In the last section of the White Paper you will find additional information about the network snapshot, token distribution, and bounty terms and conditions.
The Requirements for The Beacon Circuit?
Thus, you can send your 32 Ether to a deposit agreement along with two other parameters. Thus, the function has 3 parameters. First of all, any transaction that is deposited must contain 32 ethers. You also need a specific pub key and a specific withdrawal address. This way, you will have a pub key for Ethereum, and then you will have another pub key that you use for output.
Thus, you specify some data and, at least, you have two publishing keys. When you enter the correct transaction, it creates a receipt. Thus, any customer of the stake confirmation beacon chain will need at least sufficient access to the proof of work chain. Therefore, you should know what block hashes are and which deposit receipts were between any two checkpoints. Thus, to prove customer interest, it is enough to be an easy customer.
There will be a lighthouse chain parallel to the chain of beams Ethereum. Because of the valuation mechanism, the possibility of having a level that is far lower than 25 percent. So, some evidence of cola blocks has a clue pointing to the main chain. The next blocks of the flare chain indicate the next blocks in the main chain. Therefore, there are hard rules about consensus.
References to the child's main chain must be the same or derivative from the reference to the main chain of ancestors. When you process the block later, it will be part of the agreed rules, which you must also follow.
Thus, the one who made the deposit will eventually add to the validator, which is stored in a later block. The chain of lighthouses inside you have several sets of validators. Thus, in the current set, you have an active validator, a pending validator, and a validator set out. Thus, if you make a deposit, you will be merged into a pending validator set.
Phase Alpha: transition to a new PoS/validation system (Q3 2019 – Q1 2020)
Snapshot of the Ethereum network – August 8, 2019, 20:00 GMT;
Distribution of free EBEA tokens after the snapshot to ETH users;
Launch of the bounty campaign;
Launching a test PoS key chain (the main Proof-of-Work chain and the Proof-of-Stake key chain coexist);
Security deposits from users who wish to become validators on the PoS key chain;
No possibility to transfer EBEA between the original PoW mainnet, created for running basic dApps and for the purposes of the airdrop and bounty campaigns, and the PoS key chain.
Phase Beta – Implementation of Basic Sharding (Q2 2020 – Q4 2020)
Initial implementation of the sharding system integrated with the Key chain;
Testing the new consensus and validation procedures will work on it: pseudo-random selection of block stakers and finalizers, the voting mechanism, finalization of blocks,creation of cross-links and receipts, passing the collation data on to the Key chain, storing receipts in a merkle tree, committee sizes, etc.
Sharding will not be used for the actual execution of transactions at this stage;
Introduction of rules for shard block fork choice (contingency rule), header verification,body verification, and crosslink verification.
Phase Gamma: Sharding with EVM/EWASM (Q1 2021 – Q4 2021)
Completing the state migration to the new Key chain network;
Original PoW chain will become obsolete;
Full implementation of sharding, including transaction confirmations and recording of account balances done on individual shards;
Rewards for validators;
Development of Ethereum Beacon Assembly - a faster, more portable alternative to the outdated Ethereum Virtual machine;
Testing the Ethereum Beacon Assembly on selected shards.
Migrating to Ethereum Beacon Assembly on remaining shards.
Phase Delta: cross-sharding, exponential sharding and beyond (Q1 2022 – Q4 2022)
Migration of remaining dApps from the old virtual machine to Beacon Assembly;
Developing of new applications using the new virtual machine;
Further work on asynchronous and synchronous cross-shard transactions;
Start of work on exponential sharding.
Be a part of this incredible project. Download the whitepaper for the full scoop.
Till next time…
For more information, please visit:
White Paper: https://ethereum-beacon.com/whitepaper.pdf
My Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=2487106
My Ethereum Address: 0xF3f7b9c45864006DBd1571De53d5847C0d11438c
Disclaimer: This article was published in terms of the bounty campaign. I am not a project team member or its representative but a supporter of this incredible project.