What is Berachain? A Guide to EVM Identical L1 Blockchain

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Berachain is an innovative layer 1 blockchain that’s rapidly gaining traction in the decentralized finance (DeFi) space. Built with Ethereum Virtual Machine (EVM) compatibility at its core, Berachain enables developers to deploy and run Ethereum-based applications seamlessly—without requiring code modifications. This EVM identical architecture lowers the barrier to entry for developers and accelerates project migration from congested or expensive networks.

What truly sets Berachain apart is its unique Proof-of-Liquidity (PoL) consensus mechanism. Unlike traditional proof-of-stake or proof-of-work models, PoL integrates liquidity provision directly into network security. Users who supply liquidity are not only facilitating trades and lending but also earning rewards while helping secure the blockchain. This dual-purpose model fosters a self-sustaining ecosystem where participation drives both utility and decentralization.

With fast, low-cost transactions, a growing DeFi ecosystem, and strong incentives for user engagement, Berachain is positioning itself as a scalable and sustainable alternative in the next generation of blockchain platforms.

👉 Discover how Berachain’s innovative consensus model is reshaping DeFi participation.

Key Features of Berachain

Berachain’s architecture is designed to support scalability, developer accessibility, and user incentives. Below are the core features that define its technological edge.

Proof-of-Liquidity Consensus

At the heart of Berachain lies the Proof-of-Liquidity (PoL) mechanism—a groundbreaking approach that replaces conventional staking or mining. Instead of locking tokens for validation, users contribute liquidity to decentralized pools and are rewarded for doing so. This model ensures that network security is directly tied to capital efficiency, creating a more dynamic and economically aligned system.

By incentivizing liquidity provision, Berachain enhances market depth, reduces slippage, and strengthens the overall health of its DeFi ecosystem—all while maintaining decentralization.

EVM Identical Compatibility

Berachain is fully EVM identical, meaning it runs Ethereum-compatible smart contracts natively. Developers can migrate dApps from Ethereum or other EVM chains with minimal effort. This compatibility ensures access to existing tools like MetaMask, Hardhat, and Remix, making onboarding intuitive and efficient.

This feature is especially valuable for projects seeking high throughput and low fees without sacrificing interoperability or developer familiarity.

BeaconKit Frameworks

Berachain introduces BeaconKit, a modular development framework that empowers builders to customize consensus mechanisms, governance structures, and execution environments. Despite this flexibility, applications retain robust security and performance—thanks to Berachain’s underlying architecture.

BeaconKit enables innovation at the infrastructure level while preserving system-wide stability, making it ideal for specialized DeFi protocols, gaming platforms, and institutional-grade applications.

Fast and Low-Cost Transactions

Designed for speed and affordability, Berachain supports high-throughput transaction processing with minimal gas fees. This makes it an ideal platform for use cases like decentralized exchanges (DEXs), NFT marketplaces, and blockchain gaming—where frequent interactions demand efficiency.

Users benefit from smooth experiences even during peak network activity, avoiding the congestion issues common on older blockchains.

More Liquidity, More Rewards

In traditional blockchains, liquidity providers are often passive yield-seekers. On Berachain, they play an active role in securing the network. The more liquidity users provide, the greater their rewards—both in terms of yield and influence over network stability.

This alignment encourages sustained participation and fosters a resilient financial ecosystem where capital flows efficiently.

Staking Incentives

While liquidity provision is central to PoL, staking still plays a complementary role. Users who stake BERA or participate in liquidity pools receive additional incentives in BGT tokens. These rewards boost engagement and help maintain long-term network security.

Unlike traditional staking models with limited returns, Berachain’s integrated approach ensures that contributors are fairly compensated based on their economic impact.

Secure & Decentralized Infrastructure

Decentralization remains a top priority. The PoL model distributes control across a wide base of participants, preventing centralization risks associated with large validators or mining pools. Security is further enhanced through audited smart contracts and transparent governance processes.

This balanced approach ensures resilience against attacks while promoting community-driven development.

The Berachain Ecosystem

Berachain hosts a suite of native DeFi applications that leverage its unique consensus model to deliver seamless financial services.

BEX – Native Decentralized Exchange

BEX is Berachain’s flagship DEX, built on an automated market maker (AMM) model. It allows users to swap tokens and provide liquidity with ease. One standout feature is gasless transactions, where users pay fees using the swapped asset instead of BERA—improving usability and reducing friction.

Liquidity providers earn trading fees and additional rewards in BGT, aligning their interests with the platform’s growth.

👉 See how integrated DeFi platforms are unlocking new earning opportunities on emerging blockchains.

BEND – Lending Platform

BEND is a lending protocol where HONEY serves as the sole borrowing asset. Borrowers receive BGT incentives, increasing demand for the stablecoin. Lenders earn yield by supplying assets to lending pools, benefiting from Berachain’s capital-efficient design.

This focused approach simplifies risk management while maximizing capital utilization across the ecosystem.

BERP – Perpetual Trading Protocol

BERP offers leveraged perpetual contracts using HONEY as collateral. Liquidity providers deposit HONEY into vaults and earn BGT rewards while enabling margin trading. The platform supports continuous trading with low latency and competitive fees.

Traders gain enhanced control over positions, making BERP a compelling option for advanced DeFi users.

Tokenomics of Berachain

Berachain operates on a multi-token economy designed to align incentives across users, developers, and validators.

The ecosystem includes three primary tokens:

This structure ensures that value creation is distributed among active contributors rather than concentrated among early investors.

Berachain Airdrop: How to Claim Free Tokens

Berachain launched an airdrop program to reward early adopters and testnet participants. The initiative aimed to decentralize token distribution and onboard new users into its ecosystem.

After the mainnet launch on February 6, 2025, eligible users could claim their BERA tokens via airdrop.berachain.com. The process involved connecting a wallet, verifying eligibility, and approving a claim transaction. Once confirmed, tokens were deposited directly into the user’s crypto wallet.

Many recipients chose to hold their tokens for future value or reinvest them into liquidity pools to earn ongoing yields. Airdrops like these play a crucial role in bootstrapping community engagement and driving organic adoption.

👉 Learn how blockchain airdrops are shaping user adoption in next-gen crypto ecosystems.

Is Berachain a Good Investment?

Berachain presents compelling opportunities—but also inherent risks—like any emerging blockchain project.

Why It’s Promising:

Potential Risks:

As with any investment, thorough research is essential. Evaluate Berachain’s roadmap, team credibility, ecosystem growth metrics, and macroeconomic trends before allocating funds.

Frequently Asked Questions (FAQs)

What is Berachain?

Berachain is an EVM identical layer 1 blockchain that uses a Proof-of-Liquidity consensus mechanism to align network security with liquidity provision.

Where can I buy BERA tokens?

BERA tokens are available on major cryptocurrency exchanges. Always verify exchange legitimacy and use secure wallets for storage.

What are the main tokens in the Berachain ecosystem?

The three core tokens are BERA (utility), BGT (governance), and HONEY (stablecoin).

Are there transaction fees on Berachain?

Yes, but they are significantly lower than those on traditional blockchains, making it cost-effective for DeFi, NFTs, and gaming.

How does Proof-of-Liquidity work?

Users supply liquidity to designated pools and earn rewards in BGT while contributing to network security—replacing traditional staking or mining.

Can developers build on Berachain?

Absolutely. Thanks to EVM compatibility and BeaconKit frameworks, developers can easily deploy or migrate dApps with full customization options.

Final Thoughts

Berachain represents a bold evolution in blockchain design—merging performance, scalability, and economic innovation into one cohesive platform. Its EVM identical foundation ensures broad developer adoption, while Proof-of-Liquidity redefines how users contribute to and benefit from network security.

With a thriving DeFi ecosystem anchored by BEX, BEND, and BERP—and a well-structured token economy—Berachain is well-positioned for long-term relevance in the decentralized future.

However, investors should remain cautious due to market volatility and evolving regulatory landscapes. Staying informed through reliable sources and engaging with the community will be key to navigating this exciting new frontier in blockchain technology.