- The VeChain protocol is set to implement the Proof-of-Authority upgrade to drive inclusion.
- With reduced staking requirements and KYC removal, the ecosystem is now expected to function better.
The VeChain (VET) network, designed to enhance business processes, is set to see a new upgrade, Proof of Authority (PoA 3.0). This update is considered one of the most exciting things happening on VeChain this year.
Components of PoA 3.0 and their Importance
As previously mentioned in our report, PoA 3.0 is the third consensus model of VeChain. According to the report, this upgraded version would provide new staking opportunities and greater decentralization for the VeChain network.
In a recent X post, crypto trader Apollo highlighted the various components of Proof of Authority 3.0. These include Upgraded Validator Mechanics, New Economic Node Tiers, and Validator Delegation.
Apollo explained that VeChain will begin supporting 101 validator nodes with the launch of PoA 3.0. This improvement will enhance decentralization and security by increasing the number of participants in the consensus process.
In addition, PoA 3.0 will introduce new economic node tiers, allowing more participants to stake below the 1 million VET minimum. This upgrade will enable more individuals to run nodes and contribute to network security and governance.
Another crucial component of PoA 3.0 is the introduction of X/Economic Node Delegation to Validators. X/Economic Nodes can delegate collateral to one of 101 Validator Nodes. This will help to maintain the network while providing potential returns through staking rewards.
Furthermore, VeChain users and developers will see more possibilities within the ecosystem. For instance, the 25 million VET limit placed for block-producing Validator Nodes will be removed. Also, users will no longer need to conduct Know Your Customer (KYC) verification.
Eliminating KYC requirements will make it easier for new users to join and interact with the VeChainThor blockchain.
The PoA 3.0 upgrade overall positions VeChain as a more accessible, secure, and inclusive platform. This upgrade signifies a major step for VeChain, showing the network as a leader in providing scalable and efficient blockchain solutions.
VeChain 2025 Focus and VET Forecasts
In a recent update we covered, the VeChain team revealed its key focus for 2025. According to the team, VeChain plans to focus on VeBetter DAO VeWorld Wallet and launch the VeChain Renaissance.
The network aims to transform the VeWorld Wallet into a super app hub. This is in addition to unveiling the VeChain Renaissance to upgrade its core technologies. VeChain Renaissance aims to position stakeholders above all technical and regulatory trends. At the same time, the initiative will leverage the contributions of users and developers to subject the network to growth.
Market traders and analysts think the VET token could hit new highs, citing the positive developments in the VeChain ecosystem. In a recent study we reported on, analyst EGRAG CRYPTO said VET could replicate the 2020 cycle to hit the $1 mark.
As of this writing, VET price was trading at $0.03463, up 5.8% in the last 24 hours. This means VET must climb by 2,788.1% to reach $1.
Crypto News Flash – Read More