Via their Twitter handle, the VeChain Foundation announced the start of the voting process that will allow the community to decide to implement or reject a major update to their network: Proof-of-Authority (PoA) 2.0. This upgrade could usher a new wave of blockchain “mass adoption”, the announcement said.
As NewsBTC reported, the PoA 2.0 upgrade will eliminate the tradeoffs of the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus implemented on cryptocurrencies such as Bitcoin.
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If approved via the voting process, the upgrade will enable blockchain VeChainThor to benefit from a high throughput capability. In addition, the PoA 2.0 upgrade will bring guaranteed data finality to the network to attract more companies and high-volume use cases without compromising its security. The Foundation said:
(…) the VeChain Research and Development teams have been working on a massive upgrade of the VeChainThor blockchain called SURFACE (PoA 2.0), standing for a Secure, Use-case-adaptive, Relatively Fork-free Approach of Chain Extension.
The VeChain Foundation believes this update will allow the blockchain VeChainThor to “lead the pack on the road to mass adoption due to the development of many revolutionary technologies”. If approved the PoA 2.0 will operate as one of the first “combined consensus mechanism”.
The voting will take place from October 11 at 10:00 pm (UTC+8) to October 18, 2021, at 10:00 pm (UTC+8). The authority masternodes and Economic X nodes will have a 40% voting authority each, while the Economic nodes will have a 20% voting authority.
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These entities will have to confirm or reject the implementation of the PoA 2.0 in its first phase, to introduce the Verifiable Random Function (VRF) as a source of randomness.
Part of the VIP-193, this mechanism will “balance the unpredictability and the unbiasedness” of the block production on the blockchain VeChainThor to increase its level of security. The foundation claimed:
After months of testing by the core team, as well as our partners and community developers, we are now confident that this upgrade is ready to be deployed on the main net.
Potential Impact On The Price Of VeChain (VET)
As seen below, the VeChain Foundation disclosed their roadmap for the implementation of the PoA 2.0. Much of the progress on the testnet has been achieved with similar progress on the mainnet route.
The Foundation called on every stakeholder on the blockchain VeChainThor to cast their vote. In that way, the implementation of PoA 2.0 can continue to make progress.
Only after a successful vote by all stakeholders, an implementation on our main net can take place, and that’s why we need your vote! Voting can be done by all those that are eligible using Sync or the VeChainThor mobile wallet.
VET has failed to positively react to the announcement by the VeChain Foundation. In the daily chart, VET records a 2.9% loss trading at $0,11, at the time of writing.
VET’s current price action could be driven by Bitcoin recent move to the upside reaching into May’s highs. In the coming days, most of VET’s price performance will be determined by the BTC Dominance.
In that sense, holders could take up the opportunity to increase their holdings as VeChain enters a key channel, as pointed out by analyst Justin Bennet:
VET continues to coil above its long-standing channel support. The fun begins above 0.155. I’m using this time to accumulate.