Validators

In BeraChain’s Proof-of-Liquidity (PoL) consensus mechanism, validators are liquidity providers who secure the blockchain by staking liquidity in decentralized finance (DeFi) pools. In BeraBridge, validators ensure the correctness and security of cross-chain transactions.

Validators perform the following functions:

• Transaction Verification: Validators monitor incoming cross-chain transactions, ensuring that assets have been properly locked on the source chain and can be unlocked or minted on the destination chain.

• Consensus Participation: As part of PoL, validators participate in the consensus process by proposing and voting on blocks that contain cross-chain transactions.

• Incentivization: Validators earn rewards for their participation in securing the bridge, with incentives tied to their liquidity contributions in DeFi pools.

• Security through Liquidity: By staking liquidity (e.g., liquidity pool tokens), validators secure both the BeraChain network and BeraBridge itself. If validators attempt to act maliciously or dishonestly, they can be penalized by losing their staked liquidity.

This Proof-of-Liquidity model not only secures the network but also drives liquidity into Berachain’s DeFi ecosystem, making the network and bridge more capital-efficient.

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Validator Consensus Process:

• Validators monitor the source chain to ensure that tokens have been properly locked.

• They then confirm that the corresponding wrapped tokens can be minted on the destination chain.

• The transaction is finalized once consensus is reached, ensuring that the tokens are securely transferred and the correct amount of liquidity is maintained.