Before transitioning to its current consensus algorithm, Proof of Stake (PoS), Ethereum (ETH) relied on Proof of Work (PoW). Initially introduced by Bitcoin (BTC), PoW was considered groundbreaking technology. However, as time passed, it became evident that PoW was excessively energy-intensive, sluggish, and inefficient.
As a result, Ethereum faced elevated fees, prolonged transaction waiting times, and an overall perception of being outdated. To address these challenges, Ethereum decided to adopt PoS, which brought about enhanced scalability.
The PoS mechanism not only improved scalability but also significantly reduced energy requirements. However, the implementation of PoS required the introduction of the Beacon Chain and its corresponding token, BETH.
What is BETH?
BETH, also known as Beacon ETH, is a token associated with the Beacon Chain. The Beacon Chain was introduced to implement the PoS mechanism in Ethereum, ensuring its security and overall health. Additionally, it allows users to earn more ETH through the staking process.
In practice, users stake their ETH to activate validator software, effectively becoming validators within the network. Validators play a similar role to miners, but they secure the network by staking their coins instead of mining.
The BETH project team
Ethereum's own team of developers developed the BETH project as part of the transition to Ethereum 2.0. On December 1, 2020, it was established to formalize PoS as Ethereum's consensus mechanism through the Merge. This significant milestone was achieved on September 15, 2022, after more than two and a half years of work.
How does BETH work?
BETH and the Beacon Chain were designed as integral components to implement the PoS mechanism in Ethereum. This introduced a new approach for users to contribute to the security of the Ethereum network actively. Participating in staking and becoming validators provided a streamlined alternative to traditional mining methods.
Despite the change in mechanism, the network's security remains robust. Developers anticipated that the transition to PoS would enhance Ethereum's long-term security. As more participants join the network, it becomes increasingly decentralized, resulting in stronger defenses against potential hackers.
BETH native token — BETH
BETH, also known as Beacon ETH, is the native cryptocurrency of the Beacon Chain. It represents a tokenized version of ETH on Binance and was created in conjunction with the Beacon Chain to facilitate the transition of ETH to Proof of Stake (PoS). Like ETH, BETH maintains the same price and can be utilized for trading, investing, transferring, or purchasing goods and services.
BETH token use cases
Similar to ETH, the BETH token offers a range of use cases. Holders can engage in trading activities or use it for investment purposes. Additionally, it can be accepted as a payment method and freely transferred between users.
BETH: A project that secured Ethereum’s future
BETH has played a significant role in Ethereum's successful transition to PoS, thereby ensuring the security and longevity of the Ethereum network. Thanks to BETH, Ethereum has evolved into a more attractive project that continues to attract users. Moreover, BETH holds value as a useful token within the Binance ecosystem for those who wish to engage with Ethereum.
