Know why VeChain will lead the blockchain market this year
- Blockchain technology completely transforms the way data transfer happens in a secure and decentralized way.
- However, as clients gradually onboard the blockchain, the technology is experiencing challenges in terms of scalability and rapid settlement.
One of the significant trade-offs of the traditional blockchain architecture is maintaining stability between high throughput/scalability and having fast finality. With proof-of-authority (PoA) 2.0, VeChain looks to solve this problem once and for all. In its recent publication, the VeChain Foundation said:
The ability to propose extensible public #blockchain with assured data quality is the main reason for mass adoption. By working virtually with well-known quality assurance experts worldwide, such as DNV, #VeChain can function at the government level and become a driver of #digitalization and #sustainability.
Between the sustainable blockchain adoption, VeChain has been working on improving its consensus mechanism. VeChain highlighted that the PoA 2.0 protocol update is an important step in creating “the leading smart contract platform for businesses, governments and communities alike.” As the VeChain Foundation described:
PoA 2.0 is necessary to meet the requirements of future blockchain apps and growing demand worldwide. PoA enables our vision to create green technologies and businesses at a scale never before seen on the blockchain.
In June 2022, VeChain revealed its One Bit Block Finality feature. This will allow VeChain to operate two modes of consensus, called the Nakamoto and BFT mechanisms, simultaneously. VeChain says Block Finality will be an important part of the modern blockchain system.
Apart from that, it helps to provide a complete security guarantee for blocks that will satisfy some conditions. This week, the VeChain Foundation highlighted the following:
The vote for all stakeholders to impose VIP-220, AKA ‘security with a bit’, the third and final phase of PoA 2.0, on the #VeChainThor Mainnet, is set for October 20, 2022. It will be assisted by the introduction of our new decentralized voting platform, VeVote!
The work of VeChain
VeChain Proof-of-Authority 2.0 merges Nakamoto Consensus with Byzantine fault tolerance, as everyone removes the weakness of the other.
The Byzantine fault tolerance basically mentions a mechanism where the distributed networks accept and enforce dependence on what many of the nodes have to deliver. But this allows the system to allow if nodes have misbehaved.
Meanwhile, Nakamoto Consensus consists of guidelines that will confirm the authenticity of the blockchain network. It addresses the problem of malicious managers as Byzantine fault tolerance by randomizing the selection of a manager.