Crypto VeChain (VET) Gets Mainnet Upgrade, Will VET Price Fly?

JAKARTA – The cryptocurrency VeChain (VET) has reportedly received an upgrade to its consensus mechanism. The upgrade is claimed to be the “greenest in the world” or the most environmentally friendly method of verifying blocks on the network.

According to a Cointelegraph report, on November 16, VeChain reached a milestone in six years by upgrading the VeChainThor mainnet to the first phase of the Proof of Authority (PoA) 2.0 SURFACE consensus algorithm.

Launched in 2015, VeChain Technology is the world's leading enterprise-friendly blockchain company that aims to connect blockchain technology to the real world by providing blockchain-enabled solutions that suit their business needs. It offers VeChain ToolChain™, a low-code blockchain-based SaaS platform that enables enterprise clients to rapidly build and drive digital transformation on a global scale, enabling the evolution of a trust-free and distributed ecosystem.

VeChain Technology is a pioneer in real-world blockchain applications, with international offices in China, Singapore, Luxembourg, Japan, France, Italy, and the United States. With strong independent development capabilities, combined with professional compliance guidance from our strategic partners, PwC and DNV, VeChain has forged partnerships with many leading companies in various industries, including Walmart China, Bayer China, BMW Group, BYD Auto, PICC, Shanghai Gas, LVMH, DIG, ASI Group, etc.

For information, Proof of Authority (PoA) and Proof of Stake (PoS) are different from Proof of Work (PoW) consensus. PoA and PoS do not require mining or mining activity to reach network consensus. PoA only verifies the user's identity to reach a consensus. While PoS uses a coin staking mechanism in the network.

The VeChain network runs with only 101 nodes. Fewer nodes reduces decentralization but increases network speed and reliability. These tend to be preferred for commercial and industrial applications. In comparison, Bitcoin currently has 13,244 nodes, while Ethereum has 2,701.

An added advantage is that PoA is not energy-intensive and emits a very low amount of carbon. VeChain considers the new upgrade to be “the greenest consensus in the world to drive mass adoption.”

Cointelegraph explained that the upgrade consists of three main components according to the official announcement. The first is a verifiable randomness function (VRF) which securely and randomly assigns nodes to generate blocks or process transactions, making them immune to fraud.

The second is a committee-supported block production process that significantly reduces the possibility of network forking. Forking can cause delays and slow down the entire network.

The third component is the process of confirming the finality of the passive block. This helps ensure new blocks are resolved even if all nodes on the network are out of sync.

The VeChain team explained in the announcement that the PoA 2.0 Secure Use-case adaptive Relative Fork-free Approach of Chain Extension (SURFACE) is needed “to meet future demand for blockchain applications and increase global demand.”

A number of the largest crypto exchanges already support the VeChain hard fork, namely Binance and Crypto.com. At the time of writing, data reports from Coingecko show that VET crypto is trading at the level of Rp.2,104. The price of the VET cryptocurrency is up 4.5 percent in the last hour and has fallen 0.3 percent in the last 24 hours.