VeChain Blockchain

What is VeChainThor?

VeChainThor is the Layer 1 blockchain that powers the VeChain ecosystem.
It is the foundation for sustainable and scalable real-world products.

VeChainThor is a public blockchain forked from the foundational elements of Ethereum. It promotes broader adoption and the creation of business ecosystems through its economic model, originally designed with enterprise mass adoption requirements in mind.

Since it went live in June 2018, the blockchain has been 100% online with zero downtime.
VeChainThor is scalable and efficient, producing blocks every 10 seconds while consuming only a fraction of the energy of most blockchains — just 0.000216 kWh per transaction.

Consensus and Network Agreement

Consensus is the process by which a blockchain network agrees on the validity of a transaction or block.

In a blockchain network, transactions are grouped together in blocks, and these blocks are cryptographically linked. Consensus ensures that all participants agree on the current state of the blockchain. Consensus occurs each time a new block is appended to the blockchain.

VeChainThor's Consensus: Proof of Authority (PoA)

VeChainThor's Proof of Authority (PoA) consensus algorithm is powered by 101 Authority Masternodes, responsible for producing blocks for the VeChain blockchain.

To become an Authority Masternode, an individual or entity must disclose their identity to the VeChain Foundation and undergo a KYC process before being selected.

Only a block produced by an Authority Masternode is valid on the VeChainThor blockchain.

The Blockchain Trilemma and VeChain's Trade-Off

There is a well-known trade-off in consensus algorithms, which Vitalik Buterin, founder of the Ethereum blockchain, coined as "The Blockchain Trilemma." In essence, Buterin asserted that peer-to-peer (P2P) decentralized networks cannot score highly on decentralization, security, and speed simultaneously. Every blockchain network must sacrifice one attribute to achieve its desired configuration.

VeChain's aim is to be an enterprise-grade, sustainable blockchain. The trade-off was reducing the number of actors involved in the block production process to improve speed and security.

However, as all Authority Masternodes have their identities and reputations at stake, they are held accountable and incentivized to work in the best interest of the network’s growth and security.

Authority Masternodes also earn rewards for producing blocks, further encouraging them to act in good faith.

Continuous Improvement and Future Focus

VeChain continuously evolves the VeChainThor blockchain to meet emerging needs through:

• Regular protocol upgrades

• Research into scaling solutions

• Exploration of cross-chain interoperability

• Ongoing security enhancements

A Blockchain Built for the Real World

By combining enterprise-grade performance with innovative features and a focus on sustainability, VeChainThor positions itself as a leading blockchain solution for businesses and individuals alike.

VeChainThor's unique consensus mechanism and tailored features provide a robust foundation for the next generation of blockchain applications and ecosystem growth.