The fundamental traits of blockchain technology, including decentralization, immutability, transparency and automation, have proven to be capable of several use cases for different businesses. However, due to the costs of creating and maintaining blockchain-powered applications, it can be difficult and expensive for enterprises to fully utilize its benefits.
With the adoption of distributed ledgers, many projects have put efforts to lower the barriers to entry. VeChain is one such blockchain platform built to improve widespread use of blockchain technology. One of the most significant issues facing supply chain organizations is a lack of transparency, which blockchain aims to resolve by enabling businesses to conduct transactions directly and without a third party. It also allows data sharing between stakeholders and supports increased integration of financial and logistical services.
This article will discuss what VeChain public blockchain is, the unique features of VeChain, how VeChain (VET) works, how to buy VeChain and how VeChain staking works.
What is VeChain (VET)?
A public blockchain called VeChainThor is intended for widespread use of blockchain technology by companies of all sizes by acting as the building block for a resilient and expandable enterprise blockchain ecosystem.
According to VeChain, Ethereum remains unsuited for running large-scale commercial decentralized applications (DApps) while being a significant technological milestone. It is because Ethereum does not have a robust governance framework to allow for quick and transparent protocol changes to address emerging issues or breakthroughs.
Also, an appropriate economic model is absent in the Ethereum blockchain, restricting businesses from operating their DApps at a controllable and predictable cost. In addition, given how volatile the price of Ether (ETH) is, companies may not forecast future ETH prices or the expense of maintaining an Ethereum-based decentralized application for a specific time. So, what makes VeChain unique?
The VeChainThor blockchain hopes to address the above issues using meta-transaction features, a proof-of-authority (PoA) consensus method, an on-chain governance mechanism and a unique two-token system.
Meta-transaction features
For enterprise adoption, VeChain’s meta-transaction features, as discussed below, help make the development user-friendly:
- Multi-party payment: A decentralized application’s freemium model is enabled by flexible transaction fee delegation schemes to onboard users smoothly. With VeChain’s innovative fee delegation protocol, an enterprise can have a smart contract and designated gas account to manage the gas fees necessary to use the network.
- Controllable transaction lifecycle: Users can set the time when a transaction is executed or expires if it is not included in a block using the Expiration and BlockRef transaction fields.
- Multi-task transaction: Developers can batch payments, include many calls to various contract functions in a single transaction and control the order of the calls using multi-function atomic transactions.
- Transaction dependency: Users can set dependencies to stop transactions from being executed until the relevant transaction has been processed, ensuring that the execution order satisfies the business need.
POA consensus mechanism
PoA addresses the frequent issues businesses have with energy waste and ineffective upgrades. VeChain’s proof-of-authority is efficient because:
- Hard forks can be avoided if Authority Masternodes don’t update, thanks to the built-in smart contract.
- Low computation power is required to achieve network security and consensus integrity.
- The Foundation rigorously verifies the identities of all Authority Masternodes Operators.
Governance
The community-elected Steering Committee, which oversees the VeChain ecosystem, makes decisions and ensures that they are carried out with the help of the on-chain governance mechanism (covering stages such as proposing, approving and executing). Other benefits of such a system include lower organizational and technical development uncertainty due to role-based voting.
Dual token economy
The VeChain ecosystem comprises two tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). The first token, VET, is used to create the second token VTHO, and to make payments or remittances to other VeChain users. With the VTHO token, transaction fees are settled, and the platform’s gas and smart contract development costs are covered.
How does VeChain (VET) work?
The platform uses a PoA consensus algorithm that helps secure transactions on the blockchain network by using a network of 101 Authority Masternode operators. These operators carry out smart contract operations while upholding the VeChainThor governance rules.
Under the direction of the steering committee, users must complete rigorous Know Your Customer (KYC) checks and be able to contribute to the network’s growth, whether as a business, developer or other entity….
cointelegraph.com