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VeChain Proof-of-Authority: ‘Finality with One Bit’ upgrade live on testnet

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Supply Chain Tracking Platform VeChain updated its consensus mechanism by implementing “Finality with One Bit” (FOB). The team stated that the VIP-220 update “will provide an ideal consensus mechanism for PoA 2.0.”

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As the name suggests, this technology refers to transactions. finalitywhich refers to the point at which the relevant parties consider the transaction to be completed and therefore irreversible and immutable.

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In theory, more efficient finality reduces latency, meaning that network users can have a greater degree of confidence in a shorter time frame.

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According to @WatcherGuru, the FOB update is currently running on a private testnet. This tweet was later retweeted by the VeChain Foundation.

VeChain intends to update Proof-of-Authority

VeChain launched Phase 1 (of 3) of its Proof-of-Authority (PoA) 2.0 consensus mechanism in November 2021, calling it the “World’s Greenest Consensus”. This step introduces a verifiable randomness feature that randomly assigns nodes to create blocks or process transactions, prompting nodes to act in good faith.

Phase 2 refers to the inclusion of a committee-approved block production process that reduces the likelihood of a network fork. Thus, minimizing delays and increasing network throughput.

The current phase, finality, is the third and final component of the consensus update. As already mentioned, this will increase the efficiency of transactions. finality through:

– Maintaining the usability and reliability of our system by separating finality from the PoA process, allowing the blockchain to grow in adverse conditions.

– Introducing minimal complexity into the current PoA-based system, minimizing potential risks caused by an unknown design flaw and implementation error.

– Adding minimal extra information (one bit per block) for network communication so that we don’t have to sacrifice system performance to achieve block finality.

Project Chief Scientist, Peter Zhou called the “Finishing Gadget” a milestone and a significant step forward for the network in terms of combining advanced security with a “high standard of performance”.

Price analysis

After the FOB announcement, VeChain showed a steady rise on the daily chart.

At the time of writing, VET is trading at $0.0246, up 19% from Saturday’s local low. And by 6% in the last 24 hours. However, like many altcoins, VET is trading 91% below its all-time high reached in April 2021.

Since mid-May, the token has been trading unchanged in the range of $0.0277 to $0.0343. The June 10 spill sparked a clear downtrend before bottoming out at $0.0202 on Saturday.

VeChain daily chart
Source: VETUSD on TradingView.com





Credit : cryptoslate.com

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