BERA Berachain

Core Functionality

Berachain is a new blockchain that aims to make decentralized finance (DeFi) easier and more efficient. It uses a special system called Proof-of-Liquidity to encourage users to provide liquidity, which helps keep the network secure and running smoothly. The blockchain is compatible with Ethereum, so developers can easily build and deploy apps on it.

Native Tokens

Berachain has three main tokens that work together:

1. BERA: This is the main token used for transaction fees and staking.
2. BGT: A governance token that lets holders vote on important decisions.
3. HONEY: A stablecoin pegged to the US dollar for stable transactions.

DeFi Applications

Berachain supports various DeFi apps like:

• BEX: A decentralized exchange for swapping tokens.
• Bend: A lending and borrowing platform.
• Berps: A platform for trading with leverage.

These apps showcase how Berachain can be used for different financial activities.

Cross-Chain Capabilities

Berachain is designed to work well with other blockchains. This means users can move assets between Berachain and other networks, making it part of a larger crypto ecosystem.

Developer Tools

The blockchain provides tools and resources for developers to build new apps and services. Its compatibility with Ethereum makes it easier for developers familiar with that ecosystem to create on Berachain.

For more information, visit https://berachain.com/

Pros of Berachain

Berachain offers several advantages. It uses a unique Proof-of-Liquidity system that rewards users for providing liquidity, which helps keep the network stable and active. The blockchain is fully compatible with Ethereum, making it easy for developers to create and move apps. Berachain also has a strong and enthusiastic community, known as the BeraCult, which supports the project's growth. The platform has a well-developed ecosystem with various decentralized apps (dApps) already in place, covering areas like trading, lending, and gaming.

Cons of Berachain

There are some potential drawbacks to consider. Berachain is a new blockchain, so it hasn't been tested as much as older, more established networks. Its three-token system (BERA, HONEY, and BGT) might be confusing for new users who are used to simpler setups. The project's team is anonymous, which some people might not like. Also, because Berachain is still in its early stages, there might be changes or updates that could affect how it works in the future.

Founding Team

Berachain was founded by a group of pseudonymous individuals known as:

• Smokey the Bera
• Papa Bear
• Homme Bera
• Dev Bear

These four co-founders launched Berachain as a high-performance blockchain built on a new consensus mechanism called Proof-of-Liquidity.

Team Expansion

The Berachain team has grown since its founding:

• It now consists of about 30 anonymous members
• Baloo the Bera, a former engineering lead at Mysten Labs, joined in January 2024
• The team includes roles like APAC Ecosystem lead, Lead Developer Relations Engineer, and Corporate Development

Background

The founders come from diverse backgrounds:

• Smokey the Bera previously worked in healthcare and pharmaceuticals
• He later moved into venture capital before co-founding Berachain
• The project started as a joke NFT collection called Bong Bears, which evolved into the blockchain platform

Project Origins

Berachain's journey is unique:

• It began as an NFT project in mid-2021
• The founders were inspired by other NFT projects with utility beyond just artwork
• The community that formed around these NFTs became the foundation for Berachain's development

Major Venture Capital Firms

Berachain has attracted investments from prominent venture capital firms in the crypto space. These include Polychain Capital, Framework Ventures, and Brevan Howard Digital. These firms are known for backing promising blockchain projects and have significant experience in the industry.

Crypto-Focused Investment Funds

Several crypto-focused investment funds have also backed Berachain. Notable names include Hack VC, Tribe Capital, and Shima Capital. These funds specialize in supporting blockchain and cryptocurrency projects, bringing both capital and expertise to the table.

Strategic Corporate Investors

Berachain has also secured investments from strategic corporate players. Samsung Next, the investment arm of Samsung, and Laser Digital from Nomura Group have participated in funding rounds. These corporate backers can provide valuable industry connections and resources.

Individual Investors and Angels

Some well-known individuals in the crypto space have invested in Berachain. This includes Polygon co-founder Sandeep Nailwal and Animoca Brands' Yat Siu. These angel investors often bring personal expertise and networks to support the project's growth.

Other Notable Investors

Additional investors in Berachain include Hypersphere, Arrington Capital, Cypher Capital, and Nomad Capital. This diverse group of backers shows broad interest in the project from various sectors of the crypto investment community.

Islamic Permissibility

Yes, Berachain is generally considered halal. Berachain meets the definition of Islamic money under certain conditions, as it functions as a medium of exchange, unit of account, and store of value. Its blockchain technology aligns with Shariah principles by reducing uncertainty and prohibiting fractional reserve banking. However, its permissibility may depend on how it's used and local regulations in different jurisdictions.

Key Considerations

• Customary Money: Berachain gains status as Islamic money through wide acceptance and use in society.
• Transparency: The blockchain technology behind Berachain provides clear proof of ownership, which aligns with Islamic finance principles.
• Volatility: While price fluctuations exist, they don't inherently make Berachain non-compliant with Shariah law.
• Usage: The permissibility can vary based on how individuals use Berachain and local laws governing its use in different countries.

Islamic Finance Alignment

Berachain's underlying technology shares core principles with Shariah, particularly in its approach to reducing uncertainty and promoting transparency in financial transactions. This alignment strengthens its position as a potentially halal investment option for Muslims seeking to participate in the cryptocurrency market.