VeChain, a sustainable blockchain
When you hear about blockchain on convivial occasions there is always one… ah yes, Bitcoin… it makes one’s arms drop but it must have happened to many…
Instead, blockchain is not just Bitcoin. Indeed, upon closer inspection, the Bitcoin blockchain is among the least interesting:
- It is self-referential, it only serves to manage Bitcoin and nothing else
- It is energy-intensive, meaning it consumes a lot of energy for its operation
- It does not manage smart contracts, i.e. decentralized applications built on the blockchain, at the basis of web3.0
- It is very heavy, at most it manages 7 transactions per second at a worldwide level
- However, obviously there is a however: it is by far the most secure blockchain. The transaction validation mechanism (consensus Proof of Work) is based on the agreement of over 13,000 nodes, so it is difficult to violate the integrity of a sufficient number to undermine the entire blockchain
- Maximum Bitcoin production is limited to 21 million, of which most have already been minted. For this and other reasons it is, in fact, a deflationary crypto, which has allowed it to take on the role of digital gold
There are many other blockchains, in fact probably too many, that aim to overcome the defects of the Bitcoin one. Among the many existing ones, one, called VeChain, is specifically aimed at tracking the product supply chain and sustainability in general.
VET, a sustainable Blockchain
The basic idea is to create a transparent tracking tool for the life cycle of products from creation to new and second-hand sales, up to their final disposal.
It has a sophisticated consensus mechanism which is intended to be both safe and green, i.e. consume very little energy.
It aims to be the optimal compromise between transactional speed and data security.
It is based on a model of dual cryptocurrencies (tokens), one for the transmission of value (so-called utility token, called VET), i.e. for payments, another to remunerate the node managers for the functioning of the blockchain (VTHO). It is a mechanism that at least in intention should avoid the sudden fluctuations in transaction validation fees, typical of other blockchains (the Ethereum ones are famous)
Obviously, like all new generation blockchains it manages smart contracts.
In short, it is a blockchain to keep an eye on, also because there are starting to be some interesting use cases from companies of global importance.
Vechain white paper 3.0 can be downloaded here
The related Generative Artificial Intelligence question is posted in the dedicated gallery: Is the blockchain technology a potential threat to the financial system?