VeChain today announced that its long-awaited VIP-220 feature is finally live. This feature is considered a milestone in VeChain’s efforts to achieve Proof of Authority 2.0 consensus. It’s a step closer to a more efficient and less expensive chain compared to other competitors. Here are some important points:
The VIP-220 began testing on a private testnet today
The news did not have a big impact on the price, with VET seeing a modest 5% increase.
But VIP-220 is huge for the long-term success of VeChain.
Data Source: TradingView
What will VIP-220 do for VeChain?
VIP-220 is the latest part of VeChain’s Authority 2.0 consensus proof. So far, the first two components that include Verified Random or VRF have already been launched. VeChain is simply approaching the deployment of an elaborate PoA with a small number of validators.
PoA is seen as an innovative way to scale blockchains, reduce fees, and create a green and energy-efficient decentralized future. Furthermore, VeChain should incorporate advanced data security tools to ensure user information is protected. With PoA, mass adoption of blockchain technology could finally become a reality.
This will put the chain and its native token VET on the verge of great success. So far, this news hasn’t really moved the price of VET. The coin was actually only up 5% at press time. But from a long-term perspective, it’s definitely worth noting.
Why VeChain is not rising
The on-chain news we saw today should be enough to boost VeChain by at least 10%. However, this has not happened and is largely due to market uncertainty.
For now, many investors are just watching how the market will evolve. Underlying fundamentals take a back seat to general sentiment.