Key Takeaways:
- VeChain Thor shared a blog post highlighting the importance of its PoA 2.0 upgrade.
- On Friday, VeChain VET coin jumped 15.3% between low to high levels.
NEW DELHI (CoinChapter.com) — Blockchain-as-a-Service platform VeChain recently upgraded its consensus mechanism to PoA 2.0 phase 1.
VeChain(VET) shared details about its latest upgrade in a blog post, stating the protocol upgrade would help make it the leading smart contracts platform across ‘enterprises, governments, and community alike.’
VeChain touts itself as one of the most eco-friendly public blockchains. Given the recent environmental concerns, VeChain would become a favorite for governments and corporations looking to adopt blockchains and minimize their carbon footprint.
Meanwhile, VET, VeChain Thor’s native token, jumped 15.3% on Friday, going from the day’s low of $0.1235 to reach a high of $0.1424. VET’s performance marks the first significant price action for the VeChain token Nov 8’s 13.6% gains.
VeChain’s PoA 2.0 Upgrade
The new consensus mechanism is the brainchild VeChain’s Chief Scientist, Dr. Peter Zhou, who published a paper, ‘SURFACE: A Practical Blockchain Consensus Algorithm for Real-World Networks,’ about a next-gen Proof-of-Authority consensus algorithm.
VeChain’s PoA 2.0 upgrade combines the strengths of two main consensus mechanisms, Byzantine fault tolerance, and the Nakamoto Consensus mechanism. The Byzantine Fault Tolerance is a consensus mechanism that enables a decentralized, trustless network to function adequately even with malfunctioning or malicious nodes in the network.
However, if a majority of nodes act maliciously, the network becomes susceptible. On the other hand, the Nakamoto Consensus that verifies the authenticity of a blockchain network. In the Nakamoto system, the selection of validators is randomized.
Also Read: VeChain eyes bull run towards $0.25 as VET triggers cup and handle pattern.
In VeChain PoA 2.0, a Verifiable Random Function combines with a committee-based block production process to result in a consensus mechanism that excludes the weaknesses of the Byzantine and Nakamoto mechanisms.
The VRF randomly assigns nodes for transactions or block productions, providing immunity from corruption. In addition, the committee-based block production process reduces the probability of network forking.
As such, the VeChain team believes PoA 2.0 would help meet the demands of increasing global demand. Moreover, with the combination of two main consensus mechanisms, PoA 2.0 claims to have created ‘the holy grail of mechanisms for the real world environment.‘
PoA enables our vision of building green technologies and business on a scale never before witnessed on blockchain. […] For example, carbon markets arising from the drive towards decarbonisation require these traits to enable trustless international collaboration. We foresee many novel and revolutionary applications and look forward to sharing our future works in these exciting new areas.
VeChain in its blog
VeChain aims to fulfill its “destiny” of becoming the first mass-adopted smart contract platform by developing more sustainability initiatives.
VeChain(VET) Coin Price Charts
Despite Nov 19’s nearly 8% intraday gains, the VeChain coin is down 14% in the week beginning Nov 15. Furthermore, VET prices broke below the Sep 29-Nov 15 ascending trendline on Nov 16 after falling 11.02% intraday.
VET is currently struggling with resistance at $0.145, where the token’s 26-day Exponential MA line acts as a dynamic resistance. VET would likely try to test resistance at $0.153 over the weekend.
A sustained buying pressure could see the VeChain coin move to $0.161 before prices pull back. VET price reached $0.16 for the first time on Nov 5 after falling below it on May 19. As such, VET bulls would have to compensate for the profit-taking if the VeChain coin moves above this level.
Meanwhile, VeChain coin has immediate support at $0.1304. However, if the downtrend strengthens due to sell-offs from retail traders, VET prices could fall to $0.1253. If bulls fail to arrest the downfall, VET prices could fall to $0.1166, near its 200-day MA line, before rebounding.
Also Read: VeChain eyes rally towards $0.20 on the back of upcoming hard fork.
Meanwhile, the relative strength index for VET is neutral, clocking a value of 46.25 on the daily charts. In addition, the RSI trendline is now moving upwards, away from the oversold regions.
Furthermore, the trend-based momentum oscillator is still bearish for the VeChain coin, with the MACD histogram plotting negative bars on the daily charts.
Negative histogram bars indicate that the MACD line (difference between 12-day and 26-day EMA) moves below the MADC signal line (9-day EMA of MACD).
At the time of writing, VET coin was trading at $0.139, up 8.65% on the day.
