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The Beacon Chain is an essential part of the Ethereum 2.0 update, which is a significant move up to the current Ethereum blockchain. Ethereum 2.0 intends to address adaptability, security, and supportability issues of the ongoing Ethereum organization. The beacon Chain fills in as the foundation of this redesign.

The Beacon Chain is liable for dealing with the agreement and the approval of exchanges in Ethereum 2.0. It uses a Proof-of-Stake (PoS) agreement component called the Signal Chain PoS. In this framework, rather than diggers contending to address complex numerical riddles as in Evidence of-Work (PoW), validators are decided to make new blocks and secure the organization in view of how much ether they hold and will "stake" as guarantee.