As an enterprise-grade public blockchain, VeChain is intended to serve as the foundation for a sustainable and scalable blockchain ecosystem. Instead of relying on algorithms like PoW or PoS, it implements a Proof of Authority (PoA) consensus mechanism, which involves a steering committee made up of authority nodes to authenticate the nodes. This mechanism has several advantages, such as fast transaction confirmation and high scalability, allowing VeChain to process large volumes of transactions even under high load.
● Two-token economic model (VET & VTHO)
VeChain adopts a two-token system that includes its native coin VeChain Token (VET) and VeThor Token (VTHO), where the primary token, VET, is used for value transfer on the network, and VTHO is utilized to cover the cost of smart contract execution, including miner fees. According to VeChain's design, VET holders can automatically "earn" VTHO based on their holdings and the term of holding.