What is Vela’s Blockchain? – Chances and risks for 2022
Today, centralized solutions are everywhere. But lately, society has started to recognize the weaknesses of centralized systems, and how the biggest companies run their company. Thus, we are witnessing an enormous increase in decentralized solutions that have arisen thanks to blockchain technologies. Unfortunately, decentralized solutions can hardly be called up-to-date and user-friendly, which is important for mass distribution. This article is about a blockchain that wants to change that. This article will talk about what is Velas blockchain and what are the chances and risks for 2022. Velas is designed on Solana. Let’s take a look at it in more detail.
What is Vela’s Blockchain?
Web 3.0 will completely obliterate the boundaries between online and offline, it will be exhaustively faithful and awash with decentralized applications distributed across domain-precise clusters. The systematic confusion created by the tiny movements of billions of people is likely to make people, businesses and technologies work differently.
Motivated by the importance of Web 3.0 and Blockchain technology, Velas integrates Blockchain and creative technologies to build a fine, community-driven and decentralized ecosystem of development and assistance. Velas is designed to be a blockchain platform suitable for a variety of applications and services to be built on. According to their website, Velas is one of the most secure and fastest platforms in the blockchain world.
To solve the blockchain trilemma problem, Vela’s technologies are designed with a focus on scalability, security and decentralization. Currently, Velas Blockchain’s execution is much more increased than what can be noticed on most of the current blockchain platforms. The following image shows the comparison with different blockchains.
Comparison: Image source: Velas
To fix the scalability problem, the Velas blockchain is founded on Solana with several attributes and inventions.
Features of Velas Blockchain
Some of the main features are shown in the figure below:
Velas Features: Image source: Velas
- EVM — maintains all smart contracts and dApps created on the Ethereum stack.
- Fast transactions – incredibly efficient execution at a fraction of the cost.
- Velas Account – the passwordless key that enables exchanges with blockchain apps to cover Google Account and PayPal-like conveniences, without compromising user security.
- Access Management – a decentralized access management system that allows users to manage credentials to files on IPFS using a variety of encryption styles.
- Velas Vault – a unique solution for storing secrets and private keys. This opens up various use cases, for example decentralized control solutions of assets born on other blockchains (BTC, ETH, ERC-20, etc).
- Velas Wallet – a multi-currency wallet with staking features.
What is Velas Token (VLX) and how many VLX are in circulation?
👐 Welcome to #VelasEcosystem.
Let’s take a look at some of the Velas use cases on the Velas blockchain to understand the ecosystem better 📲 https://t.co/paSxjuUZa0#ecosystem #blockchain #crypto #DeFi pic.twitter.com/r7YdTfzov8
— Velas (@VelasBlockchain) 9 August 2022
Velas token (VLX) is the utility token. It is required for transactions in the ecosystem and it is used for payment. The VLX token also supports the AIDPoS consensus instrument. It allows the block creator to reach a consensus via the network and receive stake rewards for creating blocks. Likewise, the VLX token acts as a standard for business across multiple decentralized applications (dApps) running on the platform. At the time of writing, the VLX price is at $0.04291.
Velas relies on Delegated Proof of Stake (DPoS) consensus, which provides participants with the most profitable circumstances for exchanging with each other and encourages them to work for the benefit of the network.
- Total supply – 2,124,380,663 VLX
- Circulating Supply – 2,124,380,663 VLX
- Inflation rate – 8%
Some advantages of VLX are:
- There is virtually no gas tax. The part of the money you want to use for one transaction is $0.00001.
- Velas can achieve up to 75,000 transactions per second, indicating that no transaction will take forever to complete!
- Velas uses Proof of History instead of Bitcoin’s Proof of Work consensus. Proof of History has a supportable delay process that requires a number of steps to complete. The consequence is a remarkable output that can be scrutinized and used instead of a common median timestamp method in the Proof of Work model.
Chances and risks of Velas Blockchain
As mentioned, the Velas network uses the unique AIDPoS consensus mechanism. This allows any VLX token holder to participate in VLX token efforts, either immediately or by staking VLX tokens to validators that perform transactions via the network. In this way, network members transfer both the risk and the compensation for VLX token staking.
Likewise, the more delegates that stake with a validator, the more often the validator will perform transactions and they earn more dividends for themselves and their delegators. Validators must pay to use their systems. As such, delegators must disburse a portion of their profits as a payment to validators. Validators can also battle with each other by presenting the most profitable commissions to delegators.
It is important to note that people who participate in VLX token staking risk losing their money via token slashing; Nevertheless. This feature terminates and implicitly eliminates part of an effort when deliberate malicious behavior occurs. When slashing occurs, validators and delegators can lose their stake. In addition, the stake and cut operations provide incentives to maintain safety.
Velas (VLX) has been somewhat less volatile than the entire crypto market. There are two choices for betting in the Velas system —
- Users can create their own pool and become a validator.
- Join a current pool as a delegator.
DPOS (Delegated Proof of Stake) allows delegators to “vote” on potential validators by staking tokens on them and improving their probabilities of becoming validators.
As mentioned earlier, the current price of Velas is $0.04291. With an increase in trading volume and market capitalization, Velas’ price has shown a reasonable growth of 4% in the last 24 hours. In the last 7 days, VLX was in a promising uptrend and grew by 3.89%. Velas has shown very strong prospects recently and this could be a suitable option to dig right into and invest.
How to buy VLX?
Gate.io
You can buy VLX on major exchanges. VLX is available, among other things, on Gate.io.
How to buy VLX:
- Go to “Trade”.
- Select ‘Spot Trading’.
- You then log in.
- Finally, buy $VLX with a payment method of your choice.
KuCoin
You can also buy VLX on KuCoin. To do this:
- Log in to KuCoin.
- Then go to “Trade”.
- Choose ‘Spot Trading’ or ‘Margin Trading.
- Next, select a pair of VLX/USD.
- Finally, start trading after you get the token.
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