VeChain’s VIP-220 upgrade went live, what does this mean for the VET token?

on Jun 21, 2022
  • In the last 24 hours, VeChain (VET) saw an increase in value by 6%.
  • This can be attributed to the VIP-220 upgrade that went live on a private testnet.
  • This was the upgrade to Proof-of-Authority 2.0 which is highly anticipated by developers.

VeChain VET/USD is a layer-1 blockchain that features smart contracts and has recently undergone numerous developments.

The project launched its mainnet initially in 2018, and its cryptocurrency is known as the VET coin.

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Decentralized application transactions on the VeChain blockchain are made through the usage of the VET token, and can also be used for investments.

The VIP-220 upgrade as a catalyst for growth

VeChain announced that its upgrade to Proof-of-Authority 2.0 went live on a private testnet.

This marked a huge consensus mechanism upgrade, where some of the advantages include achieving block finality and maintaining the usability and robustness of the system through decoupling finality from the PoA process to allow the blockchain to grow in adverse environments.

Alongside this, there is the introduction of minimal complexity to the PoA-based system, which minimizes the risks caused by unknown design deficiencies and implementation bugs.

There’s also the addition of minimal extra information, one bit per block, for network communication.

VIP-220 introduces a finality gadget, which is a mechanism where blocks would be validated twice.

The Nakamoto consensus and the finality gadget, in conjunction, would make it impossible to revert the transactions.

Furthermore, VeChain’s Chief Scientist, Peter Zhou, had the following to say on Twitter:

“It’s a huge milestone for #PoA2. With the finality gadget, #VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.”

With this in mind, is VET now at the right point in time to buy, or should investors wait a bit longer?

Should you buy VeChain (VET)?

On June 21, 2022, VeChain (VET) had a value of $0.0245.

VeChain (VET)’s all-time high occurred on April 19, 2021, when the cryptocurrency reached a value of $0.280991.

Looking at its performance throughout May, VeChain (VET) had its highest point of value on May 5 at $0.05437, while its lowest point was on May 12 at a value of $0.02506.

VeChain (VET), as such, decreased in value by $0.02931 or by 54%.

With the latest upgrade in mind, and with the future plans for VeChain as a whole, the hype surrounding the project could lead to an increase in VET’s value to $0.5 by the end of July 2022, making this a solid entry point for the cryptocurrency.

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*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.