From Technical, Cultural, and Market Perspectives: Why Berachain Is the Next L1 to Watch
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From Technical, Cultural, and Market Perspectives: Why Berachain Is the Next L1 to Watch
For beginners, Berachain is an EVM-compatible Layer 1 built on the Cosmos SDK that allows staked assets to be reused for providing liquidity.
Navigating Web3 tides with focused insightsAuthor: DylanisCrossed
Translation: TechFlow
Crypto KOL DylanisCrossed analyzes Berachain from three aspects—technology, culture, and product-market fit—revealing its unique strengths in EVM compatibility, the Polaris operating system, and market readiness. TechFlow has fully translated his thread; details are as follows:
As someone with over five years of blockchain development experience and extensive history in speculation, I believe Berachain is the most significant opportunity I've ever encountered. Below are my thoughts on their technology, culture, and product-market fit.
For beginners, Berachain is an EVM-compatible Layer 1 built on the Cosmos SDK that allows staked assets to be reused for providing liquidity, where validators’ staking weight correlates with the amount of liquidity they provide.
On Technology
First, Berachain's decision to maintain EVM compatibility is extremely wise. Development tools here are far more advanced than any others, evolving at an astonishing pace. Foundry, Alloy, and Reth are prime examples. The EVM is Web3’s JavaScript—it drives mass adoption.
Berachain is built upon Polaris—an EVM operating system substrate constructed on top of the Cosmos SDK. Polaris uses message-passing to "connect" the EVM and Cosmos SDK, decoupling block construction, processing, and storage from execution itself.
Why build another appchain framework?
Simply forking Geth or other EVM frameworks cannot add complex logic to the base layer without introducing new attack vectors or breaking compatibility. As we’ve seen in past hacks, being “EVM-ish” is simply not enough.
To prove perfect EVM compatibility, Berachain even enabled an OP Stack rollup to use Berachain as its settlement layer—and it worked! This flawless compatibility is crucial for dApp deployment and a key part of my argument.
Polaris also provides protection against common attack vectors such as reentrancy attacks and gas limit vulnerabilities. Moreover, you can plug in different components from various clients, enhancing client diversity—a feature unprecedented within the Cosmos ecosystem.
Additionally, Polaris offers a precompile development kit, allowing developers to easily write precompiles for the EVM. In contrast, writing precompiles in Geth requires low-level EVM expertise, is less secure, and takes significantly longer.
Finally, IBC is the most powerful bridging standard in crypto. With rapid advancements in relay infrastructure, packet forwarding middleware, multi-hop routing, and more, this technology is evolving quickly. Furthermore, ICA and queries enable asynchronous cross-chain composability, creating seamless one-click experiences.
Especially with the rise of zkIBC, I believe the Berachain team will greatly benefit from these incoming improvements. Users and dApps will chase liquidity, and a secure, simple way to transfer assets from Ethereum will be a game-changer.
On Culture
First off, we’re dealing with a bear-themed project that raised funds at a $420.69 million valuation.
Berachain traces its origins back to August 2021 with the launch of the Bong Bears NFT collection. After releasing five editions by April 2022, the team published a Medium article revealing plans to build a native protocol.
Berachain’s culture uniquely fosters creativity. janitooor embodies Berachain, having created products like The Honey Jar (a protocol within the Berachain ecosystem) and Mibera Maker. I’ve been following janitooor for a while now, and I’m certain he’s a one-person team of 69.
While we’ve seen the rise of memes like Doge and Shiba, these projects lack underlying innovation. Imagine what could happen if a team successfully combined “meme” with real “innovation”? That’s exactly what Berachain is—the smartest, most innovative meme in crypto history.
On Product-Market Fit
Berachain has a product that fits the market. While solving scalability is important, the tech is already strong enough. dApps are chasing liquidity and users—and that’s exactly what Berachain delivers.
If migrating your dApp from Ethereum L1 to Berachain is as simple as drag-and-drop—with minimal overhead—then there’s no reason major dApps wouldn’t want to tap into Berachain’s massive liquidity. It really is that straightforward.
In DeFi, we keep seeing the same apps launched across every ecosystem: DEXs, Perps, lending protocols, etc. I think everyone is tired of this.
Proof-of-Liquidity (PoL) enables an entirely new suite of cryptographic primitives. Just to name a few: novel derivatives, new types of options and risk tranching, fully collateralized positions via smart accounts, and more. The mere prospect of next-generation DeFi tools excites me.
I haven’t discussed Berachain’s three-token model because it deserves its own dedicated thread. In short, the model separates gas fees, governance, and stablecoin functions, ultimately resolving the liquidity fragmentation issues we see in other ecosystems.
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