VeChain introduces Proof-Of-Authority 2.0 consensus mechanism
The blockchain VeChain (VET) for tracking the supply chain has now reached an important milestone in its six-year history. The first phase of its Proof-of-Authority (PoA) 2.0 SURFACE consensus mechanism has now started on the VeChainThor mainnet, as announced on November 16. The network touts the upgrade as the world’s greenest block verification method ever. POA 2.0 improves the security, scalability and throughput of the VeChainThor mainnet.
VeChain is a corporate blockchain that is realizing the value of synchronizing physical tracking with the blockchain record. The PoA algorithm achieves consensus by verifying the identities of the users. PoA differs from Proof-of-Work (PoW) and Proof-of-Stake (PoS) in that PoW requires mining and PoS the depositing of coins in a network. PoA is also less energy intensive and causes fewer CO2 emissions.
In addition, VeChain stands out from other networks through only a few (101) authority masternodes. In comparison, Bitcoin has 13,244 nodes and Ethereum has 2,701. Fewer nodes increase the speed and reliability of the network, but reduce its degree of decentralization. Because of these characteristics, the blockchain is preferred in commercial and industrial applications.
VeChain 2.0 features
According to Dr. Peter Zhou, Chief Scientist at VeChain, PoA 2.0 is the next iteration of the PoA consensus algorithm. According to Zhou’s whitepaper:
“The new consensus algorithm PoA 2.0-SURFACE is characterized as a secure, application-adaptive and relatively fork-free approach to chain extension.”
In addition, SURFACE is necessary to meet the requirements of future blockchain applications.
PoA 2.0 combines the Byzantine Fault Tolerance (BFT) and the Nakamoto consensus to eliminate the weaknesses of both processes, according to the VeChain team. BFT enables distributed networks to agree and function based on majority voting. The Nakamoto consensus verifies the authenticity of a blockchain network. In this sense, the Nakamoto consensus eliminates malicious actors on the blockchain by making the selection of validators at random, a process that cannot be circumvented – crucial for VeChain.
According to the announcement, VeChain 2.0 has three main components. The first is a verifiable random function (VRF) that safely and randomly assigns nodes to create blocks. VRF makes transaction processing immune to outside manipulation.
The second component is a process for creating blocks, which the committee has endorsed, which significantly reduces the possibility of forking in the network. Forking could lead to delays and reduce network throughput.
The third and final component is a passive process for confirming block validity. It closes new blocks even if all network nodes are unsynchronized.
The further development
Various exchanges, including Binance and Crypto.com, supported this network upgrade. Our data at press time shows that VET was trading at $ 0.13, down 7.5% from yesterday.
Another announcement made on November 16 was the election of the Second Steering Committee (SC). The team “will facilitate the efficiency of decision-making and ensure the fairness and effectiveness of execution in all fundamental matters,” it said. Phases 2 and 3 of the VeChain PoA still have to be introduced.