Announced on October 11th, the vote to update the VeChain mainnet closed yesterday and holders want to update the blockchain.
The main goal of VeChain is to improve the supply chain and its management. With a focus on businesses, VeChain wants to make markets more transparent, making all the information related to the supply chain public: from production to transport, its blockchain contains the whole process to deliver a product.
The platform includes two tokens: VeChain Token (VET), used to exchange value and as a token that can be staked, and VeChainThor Energy (VTHO), which works like Ethereum’s gas fees to allow the implementation of smart contracts.
Founded in 2015 and launched in 2016 by Sunny Lu and Jay Zhang, VeChain platform previously worked on the Ethereum blockchain, before moving to its own blockchain, VeChainThor. This blockchain works according to the consensus algorithm called Proof-of-Authority: only approved accounts can become nodes, and the process is automated allowing faster transactions. VeChain represents a mix of the best features of centralized and decentralized systems, and aims at creating a trust-free environment for supply chains.
Its system exploits IoT, allowing reduced costs for supply chain management.
On October 28th, VET holders voted on the possibility to update the VeChainThor blockchain. The governance system of VeChain includes a steering committee to better manage priorities: this committee is elected by the community, and it is the point of reference for proposals.
On October 11th, the VeChain community started voting on the possibility to update the blockchain by using a new consensus mechanism. VeChain announced PoA 2.0 as the first of its kind. As a combination of Nakamoto and Byzantine Fault Tolerance consensus mechanisms, the PoA 2.0 aims at creating a more secure environment for the network. Holders were called to vote on the first phase of the transition to a new consensus mechanism.
This first phase involves a Verifiable Random Function – VRF. The platform started testing this function on a new public testnet in July: it serves to further randomize the block-proposing schedule, in order to guarantee the highest level of security.
To be deployed on the mainnet, this function only needed the approval of the community.
On October 18th, VeChain announced on Twitter that the majority of holders agreed with the update:
If after the successful creation of the testnet the price of VET increased by over 50%, 24 hours after the tweet the price of VeChain decreased by over 2% – this is not unusual in the crypto space.
At the time of writing, VeChain is traded at around $0.11 and it is currently the 25th cryptocurrency on CoinMarketCap.
With a maximum supply of 86,712,634,466 and a 74% circulating supply, this cryptocurrency has proved to have a solid project, and to reach a good reputation among businesses that want to improve their control over the supply chain. This may result in a positive future for VeChain, but if you want to know more, visit its page on CoinMarketCap.