What is Berachain (BERA)?
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Last updated Feb 10, 2025
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Key Ideas
Berachain makes liquidity the core of its ecosystem. Its unique Proof of Liquidity (PoL) mechanism allows users to store and provide liquidity simultaneously to earn rewards.
The decentralized model of Berachain, which provides governance, transactions, and stablecoin features, is supported by a mix of three native tokens: BERA, BGT, and HONEY.
The execution layer of Berachain is an EVM-compatible layer. This allows it to operate smoothly with Ethereum, unlocking a variety of tools and use cases.

What is Berachain (BERA)?
Imagine a blockchain where liquidity is not just a byproduct of trading but the foundation of the entire network. Berachain is one of the blockchains built on the Proof of Liquidity (PoL) consensus mechanism, and BERA is the native token for transaction fees.
Unlike traditional storage models that lock up assets, the Proof of Liquidity mechanism allows users to store and provide liquidity simultaneously. This can enhance security and accessibility while providing opportunities to increase balances, benefiting traders, especially small capital holders.
How Berachain Works
Several key components serve the operation of Berachain and empower its blockchain ecosystem:
Proof of Liquidity (PoL)
The Proof of Liquidity (PoL) consensus model secures the Berachain network while simultaneously incentivizing liquidity providers. Integrating liquidity provision directly into the validation mechanism attracts both new users and potential validators.
If you want to become a validator, you first need to acquire the non-transferable governance token of the network, which is the Berachain Governance Token (BGT). This is done by securing capital in the reward vaults and thereby providing liquidity to the ecosystem.
This is the basic mechanism for earning BGT. Once you acquire BGT, you can either delegate it to a validator or burn it for BERA, which is the token for transaction fees on the blockchain. As the name of the token suggests, validators with the most BGT will have the most governance power.
EVM-compatible
The execution layer of Berachain is compatible with the Ethereum Virtual Machine (EVM), which differs from being EVM-compatible. While EVM-compatible blockchains may vary in their degree of integration with Ethereum, EVM-matching layers, such as Berachain, are fully compatible with the Ethereum ecosystem.
In simpler terms, this means that Berachain can operate smoothly with Ethereum, essentially allowing it to access everything Ethereum has to offer. Having all these Ethereum-specific features available on Berachain makes it easy to use and connect with the broader Ethereum ecosystem.
For Berachain, this translates into multiple advantages. Any updates to Ethereum can be implemented immediately on Berachain with no delay. It also relies on Ethereum execution clients such as Nethermind, Erigon, and Geth, allowing for seamless execution of smart contracts and full compatibility with Ethereum tools.
BeaconKit Framework
Berachain has built its own framework called BeaconKit. This framework includes a system called CometBFT. This system ensures that even if some parts of the network fail, the blockchain continues to operate smoothly and securely. You can think of it as a backup system for the computer network.
The interesting thing about this is that Berachain can easily connect to any Ethereum setup, thanks to its engine API. This means it is fully synchronized with the Ethereum ecosystem, allowing you to use all its tools and features.
This standard setup gives Berachain a lot of flexibility. It allows different building blocks to be easily added, such as custom block creators, or aggregates, or even data storage solutions.
