Data is an important element for a business and for running every single state. Creation of immutable data is playing a vital role in the current world. Stakeholders are being able to make access to Trustworthy Immutable Data pertaining to their transactions through public blockchains and the system is revolutionizing the world.
This Trustworthy Immutable Data changing the way of communication is increasing the trust among parties expanding efficiency in the cost of communication and transaction.
But real adoption in VeChain is being seen with its recently announced faster payments solution. Outdated way of waiting for buyer’s pay is getting removed with the touch of VeChainThor Blockchain because Alipay using logistics data logged on the VeChainThor Blockchain via IoT devices can now offer to make a loan to the supplier for their goods shipped to buyers in China.
Validating logistic data independently and accelerating the velocity of value have become quite simple to Alipay. VeChain is exceeding other major public blockchains and that is because of some differences between them.
Garbage in and Garbage out problem
Before the invention of public blockcahin technology and after the creation there yet remains an issue which is the cost of trust meaning third party providers are needed to facilitate transactions between multiple parties.
When this issue emerged as a big problem and giant companies are facing trouble, public blockchain comes into play. Though data is a key concern to businesses, it is written on the blockchain itself is immutable. Ensuring the truthfulness of these data points by even itself is impossible and as critics entitled the problem to be a ‘’Garbage in – Garbage Out problem.
In that case VeChain is much ahead of them through enabling companies to ensure the quality of theirs and their suppliers’ internal processes, providing assurance for the quality of data entering the blockchain in the first instance.
Technical and Fundamental Problems of Blockchain protocol level design
Several technical problems are available with other public blockchain platforms that VeChain has come across.
Scalability and difficulty in upgrading
VeChain’s public blockchain VeChainThor has the expedition to quickly respond to any network issues, upgrade the protocol rapidly and benefit the levels of throughput enterprise clientele demand to run at commercial scale. There are 101 block producing nodes globally as part of ‘’proof of Authority’ (PoA) in the structure of VeChain leaving the software upgrades to be carried out across all nodes uniformly reducing the risks of forks.
VeChain’s block producers have to first undergo KYC by the steering Committee. Through providing assurance about the individuals handling corporate data, VeChain cuts off the suspicion of foul play by bad actors.
Cost of Transactions
VeChain has made a solution to high cost of transaction that other public blockchain has through the launch of its unique two-token system, composed of VET and VTHO. When VTHO gets expensive because of network activity growing and market demand, the cost of transaction in VTHO terms can be deducted allowing the network to maintain a stable transaction cost in dollar terms.
Regulation, legal Issues, Tax Implication Issue
Some issues with public blockchains like paying transaction fees, managing tokens to interact with services, managing wallets and using crypto simply being tough are working as obstacle to wide-scale adoption. But VeChain has managed to let designated 3rd parties pay for the transaction fees on behalf of the users and thus it made a solution which is known as fee delegation. The solution made crypto transaction easy for citizen or businessmen. The functionality of fee delegation has got increased with the addition of the ToolChain Credit as this addition enabled the widest possible user base for the network and deducted the need for companies to interact with crypto. So it can be said that VeChain’s ToolChain is an awe for public blockchain.