What is beacon chain?
Beacon Chain is an entirely new blockchain, a PoS blockchain. It is the core that supports the entire new Ethereum 2.0 system and is the conductor that coordinates all users. Operating continuously through scanning, validating, collecting votes and offering rewards to validators who authenticate blocks, Beacon Chain helps deduct rewards for non-online people and cuts eth rewards from malicious agents.
Main function
Beacon Chain's main function is proof-of-stake protocol management and all shard chains. Beacon Chain is the coordinated mechanism of the new network, responsible for creating new blocks, ensuring those new blocks are valid and complementing the validator with ETH to keep the network safe.
Introducing staking
Beacon Chain will introduce PoS to Ethereum. This is a new way for you to help keep Ethereum safe. In fact, it will involve you setting eth to activate validator software. As a validator, you will process transactions and create new blocks in the chain.
Staking becomes an easier validator than mining. The more people involved in the network, the more decentralized and secure it will become against attacks.
Set up the shard chain
After Mainnet merges with Beacon Chain, the next upgrade will introduce the shard chain to the PoS network. These shards will increase the network's capabilities and improve transaction speeds by expanding the network to 64 blockchains. Beacon Chains are an important first step in introducing shard chains, because they require Staking to operate safely.
Interim
With beacon chain and pos system currently in place, the next stage of Ethereum 2.0 is to set up shard chains, which will upgrade Ethereum's data capacity, making the network faster and more scalable. Ethereum 2.0 will disperse network loads across 64 separate pieces, with a Beacon Chain for all-administration.
