What Is PulseChain? Everything You Need To Know
Pulsechain is a blockchain alternative to Ethereum that is faster, cheaper, and more scalable than Ethereum, while remaining compatible with Ethereum-based apps and tokens. It works based on the proof-of-stake consensus mechanism and has a deflationary native coin named PLS.
This layer 1 blockchain was forked from Ethereum. While it has imbibed several characteristics of Ethereum, Pulsechain runs as an independent network with its own validators and native token.
When Richard Heart initiated the Pulsechain project, he meant to overcome the limitations of Ethereum, especially high gas fees and congestion, without compromising on compatibility, so that existing Ethereum smart contracts and tokens can be mirrored and used on PulseChain.
How Does Pulsechain Work?
Pulsechain works using the proof-of-stake consensus mechanism. That means validators stake PLS to help secure the network and earn rewards. All validators are called to propose and attest to the activities on the block, and misbehavior or inactivity can be penalized, which helps maintain honest participation.
As Pulsechain is EVM-compatible, developers can deploy similar smart contracts and tools that they use on the Ethereum blockchain, and users can interact with dApps using familiar wallets configured for the Pulsechain network.
Key Functionalities of Pulsechain
Pulsechain aims to improve the efficiency and user experience for crypto users. Its use of the proof-of-stake consensus mechanism increases the transaction speed while reducing the environmental impact of crypto mining. The key functionalities of Pulsechain are explained below.
- Pulsechain aims to create an equitable and more balanced mechanism for token distribution and network participation.
- Pulsechain focuses on interoperability. Users of this blockchain can seamlessly interact with users of other blockchains. This allows Ethereum-based dApps to seek a more efficient and functional platform.
- Pulsechain provides a more user-friendly experience, lower transaction costs, and a cleaner environmental footprint.
More About PLS Token
PLS is the native coin of PulseChain that is used to pay transaction fees, participate in staking, and interact with smart contracts. Unlike several other cryptocurrencies, PLS tokens were not launched through an ICO; instead, they were distributed through a “sacrifice phase,” where users sent other assets or fiat to designated addresses in exchange for a future allocation of PLS.
PLS follows a deflationary tokenomics. That means a portion of the transaction fees is burned at regular intervals, which gradually reduces the supply over time. Burning creates scarcity for the tokens and increases their value over time. Validators can also hold and stake PLS tokens as a way to earn yield for helping to validate the chain.
More About PulseX
PulseX is Pulsechain’s native decentralized exchange for trading PRC20 tokens, allowing users to swap tokens and provide liquidity within the Pulse ecosystem. PulseChain and PulseX are intended to form a full ecosystem for DeFi, token trading, and NFT activity. This is achieved without relying directly on Ethereum’s mainnet fees and congestion.
Ethereum Versus Pulsechain
The key differences between Ethereum and Pulsechain are given in the table below.
| Feature | Ethereum | Pulsechain |
| Consensus Mechanism | Proof-of-Stake | Proof-of-Stake |
| Block Time | ~13-14 seconds | ~3 seconds (4x faster) |
| Transaction Fees | Higher (often a major barrier) | Significantly Lower |
| Energy Consumption | Lower (after the Merge to PoS) | Lower (PoS-based) |
| Tokenomics | ETH has no maximum supply (inflationary, though EIP-1559 burns some fees) | PLS is deflationary (a portion of all transaction fees is burned) |
| Ecosystem & Adoption | Dominant, highly established, vast dApp ecosystem, and a large user base | Newer, community-driven, mirrors Ethereum’s state, and is still growing its dApp ecosystem |
Are there any Risks of Investing in Pulsechain?
Investing in Pulsechain has several risks, too. Some of the risks are given below.
- PLS is a highly volatile token due to low market cap, hype cycles, and crypto market trends. PLS investments have a high chance of leading to loss.
- It has limited exchange listings and trading volume, making it hard to buy or sell large amounts without price impact.
- As a newer chain, undiscovered vulnerabilities on its smart contracts could result in hacks or fund losses.
- Regulatory uncertainties, such as potential crackdowns on unregistered securities or DeFi projects, could freeze assets or impose bans.
- Market and adoption risks of PLS tokens include failure to attract developers/users beyond the HEX community could cause value collapse.
The Bottom Line
Pulsechain is a new blockchain that will serve as an alternative to Ethereum by serving users with high speed, low transaction fees, and improved scalability. Despite its advantages, it remains a high-risk asset due to its high volatility, low liquidity, and potential for project failure. Choosing PLS tokens for investment should be the result of careful considerations. It is only suitable for risk-tolerant portfolios with under 5% allocation. When compared to Ethereum’s stability and credibility, Pulsechain’s promises are generally unproven. Therefore, investors are advised to monitor the on-chain developments of the project and analyse the overall crypto market trends before investing in Pulsechain.
Cryptocurrency Analyst