Another cryptocurrency made it to the top 20 coins, VeChain which got released on 0:00 UTC on Saturday added the first block to its blockchain, VeChain’s token supply is estimated to be worth $1.46 Billion, the project aims at providing solutions to the businesses.
Like any other chain, VeChain also aims at solving the problems faced by other public blockchains like Ethereum and Bitcoin, issues such as scalability, interoperability, and sustainability of the network. The chain also aims to be the go-to platform for the business, like Ripple and Hyperledger are providing scalable and cost-effective solutions to different businesses.
Typically if a blockchain is successful at solving the problems it’s technology claims to, more people will start using the network, more use cases will get developed and higher will be the valuation of the token, but consecutively the fees of using the network will also increase and people will start to leave the network.
VeChain claims to have the solution to this rise in the fees of the network, they are using something they are calling a twin token system VET token functions as a store of value and VeThor token functions as the underlying cost of using the blockchain, the twin token system is an emerging concept of how the fees on the network can be regulated while the users in the network increase.
Danny van de Griend, CEO of MustangChain, a startup which intends to use VeChain’s technology to create a more transparent industry with better data accessibility, commented on CoinDesk:
“If you want to have it fully decentralized, it can become a mess,”. “You need a good balance between centralized and decentralized.”
De Griend continued:
“You don’t have to think about the basics anymore. Those basic protocols are ready to be used, so you can think more now about, ‘What can I develop now for the stakeholders?'”
The project uses a system called “proof-of-authority” (PoA) to govern how its blockchain rules can be altered, which Lu says offers enterprises “a balance between decentralization and centralization.”
EOS and Tron have also experimented with new governance models in which software users are positioned as “community members” that can use their tokens to elect delegates (nodes) to validate blocks. These elected members are the’Block Validators’ who validate the block and add it to the blockchain.
VeChain has already earned a name in the enterprise blockchain industry through a partnership with BMW, Groupe Renault, and a global quality assurance and risk management company DNV GL.
Some partners, like DNV GL, have even taken on a more technical role in the project’s execution – specifically within its governance system, a key part of VeChain’s pitch to businesses.
This year we are looking at a lot of innovations happening at the protocol level, Multi-level chain, off-chain transactions and many more innovations, which blockchain or protocol do you think is the best for enterprise use cases? Let us know.
Image Source for the featured image: medium.com
Disclaimer: The opinions presented here are of the Authors. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. CoinScenario.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.