What Is Berachain? An Innovative Layer 1 Blockchain

Berachain is a cutting-edge Layer 1 blockchain fully compatible with the Ethereum Virtual Machine (EVM), originating from the Bong Bears NFT project. The platform targets current blockchain challenges in liquidity and security by introducing a novel consensus mechanism called Proof of Liquidity (PoL).

Berachain Mainnet Launch

Berachain launched its mainnet in early 2025, marking a major milestone for the project alongside its Token Generation Event (TGE). The crypto community widely anticipated this event, as it promised to deliver innovative solutions to persistent blockchain industry issues.

What Is Berachain?

Berachain is an EVM-compatible Layer 1 blockchain built on the Cosmos SDK. It merges Ethereum’s developer-friendly flexibility with the scalability and interoperability of the Cosmos ecosystem. Berachain is purpose-built for decentralized applications (dApps) and smart contracts, aiming to deliver a seamless experience for both developers and users.

Berachain stands out from other Layer 1 blockchains thanks to its Proof of Liquidity (PoL) consensus mechanism. Rather than securing the network through staked tokens as in Proof of Stake (PoS), Berachain prioritizes liquidity, rewarding community members who contribute liquidity for trading and governance.

What Sets Berachain Apart from Ethereum (ETH)?

The key difference between Berachain and Ethereum lies in their consensus models: Berachain leverages Proof of Liquidity, whereas Ethereum uses Proof of Stake. Despite this, Berachain maintains full EVM equivalence, allowing any application running on Ethereum to run seamlessly on Berachain.

Who Is Behind Berachain?

A group of pseudonymous co-founders—Homme Bera, Dev Bear, Papa Bear, and Smokey the Bera—lead Berachain. The project began development in late 2021 and represents the founders’ first major venture in the industry following the Bong Bears NFT project and related collections.

How Does Proof of Liquidity (PoL) Work?

Proof of Liquidity (PoL) is a groundbreaking consensus mechanism that rewards participants for supplying liquidity while also securing the network. Unlike Proof of Stake (PoS), where validators only lock up tokens, PoL requires validators to both stake tokens and actively provide liquidity in the decentralized exchange and liquidity pools.

What Is BeaconKit?

BeaconKit is Berachain’s modular consensus layer, built with the Cosmos SDK. It empowers Ethereum-based blockchains by equipping developers with tools for building both Layer 1 and Layer 2 solutions. BeaconKit ensures Berachain’s EVM compatibility, allowing any Ethereum decentralized application (DApp) or smart contract to deploy on Berachain without modification.

What Are Berachain’s Core DApps: BEX, Bend, and Berps?

Berachain offers three flagship DApps that capitalize on the benefits of PoL:

1. BEX: A decentralized exchange enabling community members to trade a wide range of crypto assets.
2. Bend: A lending protocol similar to other leading platforms, facilitating token deposits as collateral and borrowing against them.
3. Berps: A perpetual futures trading DApp that lets users speculate on digital asset price movements without owning the underlying tokens.

How Does $BGT Govern the Network?

$BGT is Berachain’s governance token, designed to incentivize active community participation. Holders of $BGT can propose upgrades, vote on network proposals, and engage directly in decentralized decision-making. This governance model prevents dominance by large gas token holders, ensuring those who actively contribute to the ecosystem shape its future.

What Is $HONEY?

$HONEY is Berachain’s stablecoin, optimized for trading, lending, and borrowing across the platform. It is flexibly pegged to the US dollar and backed by a diversified basket of crypto assets, including $BERA and $HONEY-wrapped tokens. This multi-collateral strategy aims to enhance stability and resilience, outperforming single-asset-backed stablecoins.

Conclusion

Berachain delivers a fresh perspective to blockchain technology, blending EVM compatibility with its Proof of Liquidity consensus. This model empowers the community to stake tokens, supply liquidity, and receive rewards. With robust developer tools like BeaconKit and key DApps—BEX, Bend, and Berps—Berachain is building an integrated ecosystem that addresses the blockchain industry’s most pressing challenges. Its mainnet launch in early 2025 represents a pivotal advancement in blockchain innovation.

FAQ

What Is Berachain in Crypto?

Berachain is a Layer 1 blockchain that implements Proof of Liquidity, requiring validators to provide liquidity instead of traditional staking, with the goal of boosting security and efficiency.

Will Berachain’s Price Increase?

Forecasts suggest Berachain could reach higher price levels by 2040, with a projected minimum price of $5,020. Current market trends indicate the potential for significant growth.

Is Berachain Built on Ethereum?

No, Berachain is not built on Ethereum. It is an independent Layer 1 blockchain that’s fully Ethereum-compatible. As of 2025, Berachain is operating on its public testnet.

What Is the Value of 1 Berachain?

As of November 25, 2025, 1 Berachain is valued at approximately $2.44 USD. The price remains subject to cryptocurrency market fluctuations.