- VeChain is set to go through an important upgrade next week.
- It will transition from Proof-of-Authority (PoA) 1 to PoA 2.
VeChain price rallied on Tuesday and then pulled back as the countdown to the upcoming upgrade started. VET rose to a high of $0.02850, the highest point since August, and then retreated to $0.025. The coin has jumped by more than 29% from its lowest level this year.
VeChain upcoming upgrade
VeChain is a leading blockchain project that seeks to become the best platform for supply chain management. It was built on top of VeChainThor, making it possible for companies to solve real-world problems.
Unlike Ethereum which uses proof-of-stake (PoS), VeChain uses a technology known as proof-of-authority (PoA). PoA is similar to PoS but it does more things better. Its difference is that it assumes that there are no anonymous block producers. Instead, it assumes that there are a number of known validators authorized by the Authority Masternode (AM).
VeChain price rose after the developers announced the timeline for the upgrade to PoA 2.0. The new upgrade will introduce a new technology known as Finality with One Bit. Its key features are that it will improve block finally and decoupling finality from the PoA process.
Learn more about how to buy Vechain.
PoA 2.0 will also introduce minimal complexity to PoA 1.0, which will reduce the risks caused by unknown design challenges. Further, it will add minimal extra information for network communication.
The goal is to make VeChain a much better platform for developers and companies using its network. Some of the notable firms using VeChain are BMW and Walmart China. Further, it will improve data quality, improve chain security, and solve the trade-offs in Nakamoto vs BFT consensus.
After soaring on Tuesday, VeChain price crashed as worries of Alameda Research contagion continued. As we wrote on Monday, there are concerns that the company could be the next major company to fall. FTT price continued to drop on Tuesday.
VeChain price prediction
The four-hour chart shows that the VET price surged to a high of $0.028 this week ahead of the upcoming upgrade. As it rose, the coin surged above the key resistance level at $0.024, which was the highest point on October 4 and 30.
It then made a break and retest pattern and moved above the 25-day and 50-day exponential moving averages. The Relative Strength Index (RSI) has tilted downwards. Therefore, the coin will likely continue falling and retest the support at $0.024.
