Categories: News

VeChain paves the way for the future of the NFT ecosystem

  • The market capitalization of the NFT ecosystem grew to $210 million last year and is expected to grow to $315 million by the end of 2020.
  • VeChain is one of the pioneers and offers a versatile compatible blockchain platform to connect NFTs with the real world.

Non-fungible Tokens (NFTs) are unique assets that can be managed and tracked in blockchain networks. Due to their rapidly growing popularity in various industries such as art, online and gaming, the total market capitalization of all NFTs has increased to $210 million in 2019 and is expected to reach $315 million by the end of 2020.

VeChain belongs to pioneers in the NFT sector

VeChain provides a versatile blockchain platform to drive the adaptation of the NFT ecosystem. NFTs based on VeChain are already used in many business scenarios. These include tokenized assets in the supply chain, identity management, software licenses, real estate, medical licenses, legal degrees and certifications for companies.

For example, the luxury online marketplace Reebonz uses NFT-based authentication based on VeChainThor blockchain to provide an end-to-end tracking system for luxury products such as leather goods or handbags. Other industry giants such as DNV GL and SBTG also rely on NFT-based technology to track their goods from the point of manufacture to the consumer.

VeChain’s governance model uses an NFT-based stakeholder status (i.e. Economic X Nodes and Economic Nodes), which enables all stakeholders involved in the system to vote on the VeVote platform. Already in 2018 VeChain published the VIP 181 NFT standard, which enables NFT applications to be used natively through the VeChain systems provided.

VeChain notes that the VeChain BaaS platform ToolChain™ enables companies to easily and reliably link real assets to blockchain NFTs. VeChain ToolChain™ provides a toolkit that can reduce the time to deploy new blockchain applications from months to weeks.

Silicon Valley-based start-up VIMworld by 8Hours says that since porting its token from Ethereum to VeChain, it has seen tremendous growth. VIMworld provides an ecosystem for non-fungible tokens (Smart nFT) for collecting, playing and rewarding items. By using VeChain powered NFC/RFID chips, physical objects such as toys or cards can also be tracked.

To date, VIMworld has been able to win numerous prominent partners from the entertainment industry such as Atari, Sega, Asmode or LINE. John Dempsey, co-founder and CEO of VIMworld, is impressed by the strong performance of VeChainThor blockchain:

We’ve recently launched VIMworld.com on the VeChainThor Blockchain. VeChainThor has been able to cope with each of our Smart NFTs VIMdispenser sales where we saw upwards of 300 participants signing a transaction within a single 10 second block with no slow down in network or inflated network fees.

Currently, more than 12,000 Smart NFTs have been distributed to users of the platform. Dempsey states that the use of Ethereum may have caused a traffic jam in the network. In addition, transaction fees of up to $400,000 would probably have been incurred. As a result, the switch from Ethereum to VeChain was, in his view, a perfect decision:

Our 3000+ active users who are feeding their VIMs daily would incur even more cost on Ethereum up to millions of dollars just to interact with the dApp. Moving forward, VeChain’s NFC/RFID toolsets are also very well-crafted for what we are doing in the physical/digital collectibles space.

VeChain’s performance clearly above industry average

As Crypto News Flash already reported, a study by the auditing company Deloitte has shown that VeChain offers significantly better performance and scalability than Ethereum. This is mainly due to the consensus model, the Proof of Authority. With version 2.0, performance could increase further, as Deloitte found out:

The VeChainThor blockchain dynamically increases the bandwidth based on the actual usage and Authority Masternode performance. The 10s block time ensures low latency in transaction confirmation, and the upcoming PoA 2.0 — SURFACE will further improve the quick block finality by combining the advantages of the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus.

Collin Brown

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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