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- 1 VeChain works on the prominent Proof of Authority (PoA) consensus protocol
- 2 VET has made a surge of more than 66% in the past month.
VeChainThor is a smart contract platform that uses blockchain technology to assist enterprise developers in creating custom smart contracts, services, and DApps for various applications. This can lead to improved data management practices, daily operational processes, and more engaging business models for consumers.
VeChain Tackling Limitations
VeChain addresses the limitations of Ethereum that make it unsuitable for large-scale commercial decentralized applications (DApps). For example, Ethereum lacks a robust governance framework for swift and transparent protocol adjustments to address emerging issues or breakthroughs.
Moreover, Ethereum’s economic model is not suitable for businesses, especially given the volatility of Ether (ETH) prices, making it challenging to manage costs effectively.
VeChainThor offers unique features to solve these challenges, such as Meta-transaction features that allow users to control when a transaction is executed or abandoned, even during high-capacity blockchain operations. VeChainThor also has an on-chain governance mechanism that facilitates transparent decision-making and quick protocol changes based on community consensus.
The two-token model, consisting of VET (VeChain Token) and VTHO (VeThor Token), helps shield transaction fees from the direct impact of volatility, contributing to a more stable and sustainable economic ecosystem.
Proof of Authority in Vechain
VeChain is a prominent Proof of Authority (PoA) consensus protocol that offers greater security and peace of mind to enterprise actors. In the PoA framework, identity plays a pivotal role as a stake in validating transactions and creating new blocks.
Validators secure their positions based on their identity, creating an incentive structure where maintaining the transaction process is directly linked to preserving their reputation. This model contrasts sharply with consensus mechanisms like Proof of Work (PoW), where block producers are anonymous.
PoA is a desirable attribute from a regulatory and enterprise perspective, offering a means to eject bad actors and a path of recourse if any attempts at network manipulation arise.
Vechain is about to go into a Bull run, Analysts Predict
Glassnode’s altcoin season indicator shows that altcoins could be on the brink of an explosive price rally in the coming weeks. Many crypto analysts confirm that an ‘altseason’ is near, which is further supported by the recent surge in VeChain’s price by over 50% monthly, outperforming almost the whole cryptocurrency market.
After briefly surging above $0.0500, the price of VET has leveled off around $0.04400. The increase was triggered by the VeChain team’s announcement that it would enter more financial markets. Despite this impressive outing, one crypto analyst has predicted that VET could continue to extend its gains in the coming months.
VET to Follow Historical Pattern?
BTC’s recent surge was tracked by VET, which gained 11% on Wednesday, according to TradingView data. However, VET’s price movement for the month was more significant, with the blockchain token gaining 66%.
Analysts believe that VET will follow historical patterns based on its current trajectory. Using a VETUSD weekly chart from TradingView, the well-known crypto analyst demonstrated how the crypto is repeating its 2020 price behavior ahead of the 2021 bull run.
Conclusion
VeChain overcomes Ethereum’s limitations for large-scale commercial decentralized applications and provides a more suitable economic model for businesses. The announcement that VeChain will enter more financial markets triggered an increase in its value.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
