Will VeChain’s VET Soar Following the Much-Awaited Hard Fork Event?

LUCKNOW (CoinChapter.com) — VeChain’s price declined by 2.6% on Nov 17 amid a stagnant broader crypto market. Nevertheless, a new rally could be in the midst following the deployment of VeChainThor’s mainnet hard fork.

On Nov 17, the final phase of ‘Proof of Authority 2.0’ (VIP-220) was implemented. Once fully integrated, the blockchain is expected to see a greatly improved level of security and a data quality guarantee with finality. 

Finality measures the time one waits for blockchain transactions to be confirmed. A greater degree of finality ensures that a blockchain can approve transactions faster and reduce users’ waiting time.

Earlier, VeChain rolled out phase 1 of its Proof-of-Authority (PoA) 2.0 consensus mechanism in Nov 2021. The phase introduced a verifiable randomness function that randomly assigns nodes to process transactions.

Phase 2 integrated a committee-endorsed block-production process which minimized blockchain delays and speeded network throughput.

The final phase, finality, was deployed following the successful vote on VIP-220. VeChain proposed two solutions to block finality as part of its work on PoA 2.0. They were described in VIP-193 and VIP-220, respectively.

According to a blog, VIP- 220 will help in the following:

• Achieving block finality
• Maintaining the usability and robustness of our system by decoupling finality from the PoA process allows the blockchain to grow in adverse environments.
• Introducing minimal complexity to the current PoA-based system, minimizing the potential risks caused by unknown design deficiency and implementation bug
• Adding minimal extra information (one bit per block) for network communication so that we do not need to sacrifice system performance to achieve block finality.

Binance Backs Hard Fork

From a user perspective, many in the community eagerly awaited the hard fork event. Some social media users even dubbed it a “game-changer” for the supply chain-oriented platform.

Meanwhile, the world’s largest exchange, Binance, lent support to the hard fork. It advised that VET trading would not be affected during the network upgrade. It also said it would handle all technical requirements for all users holding VET in their Binance accounts.

VET Technical Analysis

From a technical perspective, it appeared as if the hard fork event failed to create a stir among traders. Since Nov 8-10, VET’s price had slipped by 36% to $0.0178 – its lowest in nearly two years. These losses were more in line with the broader market meltdown which arose from the FTX debacle.

On the 4-hour timeframe, VET traded below its 20 (red), 50 (yellow), and 200 (green) -daily simple moving averages. This indicated that the trend was bearish over the shorter term. A below-par RSI would likely keep bullish bets away as well.

Bulls could be back in the game if VET topples $0.021 resistance on the back of a broader market recovery. However, this projected move could open a path to $0.034, provided retail investors sustain the pump.