VeChain (VEN) launched the public blockchain Thor, which was held on June 30. This event was expected in the market, but most of all the hopes for a new technological platform were laid by investors of this cryptocurrency.
Previously, the VeChain team stated that they want to create an “ideal blockchain”, since Sunny Lu, the former director of information technology at Louis Vuitton’s subsidiary in China, and now the founder of VeChain, together with like-minded people, decided to avoid all those mistakes and weaknesses that exist in distributed registries Ethereum and Bitcoin.
According to the VeChain roadmap, Thor has already mined the first block, which was a good start. Unfortunately, the market didn’t particularly react to this important event for the VEN community. Almost 10% growth on June 30 to $2.70 isn’t a good result on the temporarily green market amid the fact that a number of cryptoccurencies showed much better growth, means that VeChain isn’t yet in the trend.
Perhaps such weak rates are because the VeChain blockchain, which operates on the Proof-of-Authority (PoA) consensus algorithm, isn’t in a full sense decentralized. This is recognized by Sunny Lu himself, who is looking for a balance between centralization and decentralization.
The functioning of the mainnet is similar to how EOS and TRON blockchain works. However, with the example of these two altcoins, it can be seen that there is no decentralization there. The management of nodes is concentrated in the hands of a small group of people who have all the opportunities for cooperating with each other, as well as establishing and changing rules, for example “freezing” accounts on the mainnet in accordance with their vision, but easier to say in their own interests.
Another thing that causes concern is how the tokens will migrate to their own mainnet from the Ethereum. Also, with the transaction of tokens, there is a risk of hacker attack and the disappearance of a part of the tokens, which is also recognized in VeChain.
Some investors are concerned that the process of working with clients with crypto exchanges isn’t clear. During the migration of tokens to their own blockchain, which should happen in mid-July, there may be a temporary “freeze” of funds in purses, but when it happens no one knows yet.