Cons of Vechain
VeChain (VET) is a blockchain-based supply chain platform. Launched in June 2016, VeChain uses distributed governance and Internet of Things (IoT) technology to build an ecosystem that can solve some of the major problems associated with supply chain management.
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VeChain is currently trading at $0.176059 USD with a 24-hour trading volume of $1,629,631,794 USD. VeChain is up 4.90% in the last 24 hours. The current MarketCap ranking is #22, with a live market cap of $11 Billion USD.
Vetchain has many positives, but the negatives are often overlooked even though they are serious.
The Cons of Vechain
The proof of the Authority algorithm is not very convincing. To make vet more efficient, master nodes are selected to validate transactions, and they run more efficiently than if normal nodes were selected. However, there are only a few master nodes that validate all transactions now.(See similar in the Solana fud?)
China:Vechain was founded in China, so if the Chinese government wished, they could force a backdoor into the blockchain.
The fact that VET is based in China makes it very difficult for international users to use it and what is the point of a supply chain if it is only in one country? China, one of the largest producers of goods, cannot make everything. Materials, labor, and so on must be outsourced. Especially in Europe and America, growing anti-Chinese sentiment is going to hurt a lot.
Vet itself is just a means of storing value. It’s not bad for bitcoin or etherum. Vthor does a lot of work with information and supply chains, and vet will be there as a second hand. Therefore, why are people hyping up a token that does less?
What does it matter that Vechain supports Dapps? Virtually every crypto can support this, which is now one of the most basic needs. Vet appears to be in competition with other supply chain tokens in the future. Despite the fact that it’s the biggest supply chain token, we all remember what happened to bitcoin cash, litecoin, and eos.
Other tokens were made into specific needs based on the foundation. It’s clear that Vechain is trying to accomplish a lot, but other foundations and groups could easily in a few years make a better version tailored to specific goods, services, or supply chains. There are many different kinds of supply chain vets!
In conclusion, the vet has some issues. China, to the token vet, to the centralization of vet.