Four Key VeChain Differentiators

VeChain has an incredible feature set that makes it a powerful blockchain platform. It is no singular aspect of VeChain that gives it a significant technological advantage over other blockchain projects, but rather a combination of features that work together to create a powerfully effecient, stable, and user-friendly platform. In this post, I won't be going over every feature of VeChain, but I will be focusing on four key differentiators that set it apart from other blockchain projects.

Two-Token Design

VeChain uses two types of tokens to ensure network accessibility and reduce price volatility. These tokens are VET and VTHO. VET is used as the value-generating base token of the network, while VTHO is used to stabilize the cost of using the network. By design, VET generates VTHO at a rate of 0.000432 VTHO per VET. These VTHO tokens are automatically sent to the address at which the VET is being held. Therefore, if you are holding VET in your VeWorld wallet, your ability to access and write data to the VeChain network (i.e. VTHO) will automatically be credited to your wallet with every block.

Dynamic Adjustment

Built into VeChain is the ability to adjust the cost of interacting with the network. Being able to dynamically change transaction costs (i.e. the amount of VTHO required to write data to the blockchain) helps to stabilize the throughput of the network and ensures that users can always access the network, even if the price of VET is prohibitively high. But what if paying the VTHO cost of a transaction is too cumbersome? Well thats where the next differentiator comes in.

For further reading on VET, VTHO and the Two-Token Design, see the VeChain documentation on the dual-token economic model.

Fee Delegation

Fee Delegation allows users to interact with VeChain without needing to own any VTHO. Instead, the cost of the transaction is paid by a third party, often times the developer of an application. This lowers new user onboarding friction by avoiding the complexities, however minor, associated with owning and managing cryptocurrency. In fact, fee delegation can be done so transparently that the end-user may not know they are interacting with VeChain at all. This allows applications to be built that can be used by anyone, regardless of their technical knowledge or experience with blockchain technology.

For further reading on Fee Delegation, see the VeChain documentation on Fee Delegation. For a hands-on example of setting up a Fee Delegation service with zero code, see the documentation and tooling at vechain.energy.

Transaction Clauses

Transaction Clauses allow for multiple operations to be bundled together into a single transaction. This is useful for complex operations that require multiple contingent steps to be completed in a specific order, all in one transaction. For example, if you create an application that pays out multiple parties at once, you could use transaction clauses to ensure that all parties are paid out at the same time. As a real-world example,this would look something like Uber or Lyft recieving payment from the rider, paying out the driver, and taking their cut, all at the same time, all in one transaction. With VeChain, leveraging transaction clauses programatically ensures that each clause is successfully executed before any money changes hands.

For further reading on Transaction Clauses, see the VeChain documentation on Transaction Clauses.

Transaction Dependency

The sibling differentiator to Transaction Clauses is Transaction Dependency. Transaction Dependency allows for transactions to be processed in a specific, dependent order. This is useful for operations that require multiple, complex steps to be completed in a specific order, but not all at once. As a real-world example, the process of purchasing property involves a sequence of multiple contingent conditions to be met. The property must be inspected, the buyer must secure financing, and the seller must provide a clear title. If any one transaction fails in the sequence, future transactions will be unable to complete successfully. Implementing this with VeChain with Transaction Dependency would programatically ensure that each step is successfully executed before any record of property changes hands.

For further reading on Transaction Dependency, see the VeChain documentation on Transaction Dependency.

Conclusion

From the the ease of use for new users, to the systematic certainty of transactions, VeChain leverages the above differentiators as key components to create an effecient, stable, and user-friendly platform. If you are interested in learning more about the technical implementations of the above concpets as well as the other foundational features of VeChain, I highly recommend checking out the VeChain documentation, VeChain whitepaper, and VeChain source code. These resources will provide a lens into the technical aspects that make VeChain a leading platform in the blockchain ecosystem. As VeChain continues to grow and evolve, it will be exciting to see how all of these features are leveraged to create new and innovative applications that will change the way we interact with the world around us.