- An analyst breaks down VeChain’s Proof of Authority (POA 3.0) upgrade and highlights its potential to improve inclusivity and democratize decision-making.
- The analyst also pointed out the prediction that VET could imitate the explosive price move recorded in 2020 to hit $1.
In a previous article, we discussed one of VeChain’s (VET) most exciting updates of the year, Proof of Authority (POA 3.0). In that report, we explained that it would provide new staking opportunities while enhancing greater decentralization for the network. Days after, another renowned investor and analyst, identified as Cheeky Crypto, provided an extensive breakdown of this technical upgrade.
In the 13-minute 51-second video, Cheeky Crypto explained that the upgrade is being implemented to significantly transform the crypto industry by ramping up security, slashing staking barriers, and eliminating Know-Your-Customer (KYC) verification.
Delving into this, he highlighted that this upgrade is the third iteration of the Proof of Authority (POA) consensus model. Most importantly, this would introduce a revamped system for validator nodes to make the VeChain ecosystem more decentralized and secure. According to him, a minimum stake of 1 million VET was required to run a node previously, posing a huge challenge to several participants. With POA 3.0, more users would be able to stake small amounts and still be part of the network.
Another expected feature in this upgrade is the introduction of the X Economic nodes delegation system. According to the analyst, this enables small nodes to delegate their collateral to one of the 101 validator nodes. This would ensure that a simplified and more inclusive staking process is provided. Meanwhile, the elimination of KYC encourages massive participation, which, in the end, encourages democratic decision-making in the blockchain.
VeChain’s Roadmap and Price Prediction
Speaking on the general roadmap, Cheeky Crypto pointed out that VeChain’s objective is not just to stop at the upgrade. Instead, they are embarking on several transformative initiatives to improve the network.
Firstly, he highlighted that VeChain has already introduced multiple flagship projects, including the VeBetterDAO and the Veworld wallet. According to him, VeBetterDAO is meant to empower the community by ensuring that they get a voice in governance and decision-making. Meanwhile, the Veworld wallet also provides several services apart from the usual custody operation. Per his submission, the wallet is expected to become a hub for various services like payment, asset management, or even decentralized applications.
Speaking on the numbers, the analyst pointed out the price which was trading around $0.033. VET attained this price point by recording a 4.4% gain on its 24-hour price chart.
Additionally, he outlined the recent predictions that tip the asset for a dramatic surge. In this case, he cited the prediction of analyst EGRAG CRYPTO which hinted that VET could mirror the explosive surge recorded in 2020. As explained in our last analysis, VET recorded a 6,538% surge in the previous cycle to add $0.19888 to its price.
While Cheeky Crypto believes that this prediction tends to delay, he disclosed that the ongoing development shows that the project is on the right track. Amidst this, VeChain is also working on its holistic upgrade, dubbed the “VeChain Renaissance,” to reimagine its tokenomics, as mentioned in our previous news brief.
