6 points that make VITE awesome
Updated: Sep 29, 2020
VITE is a decentralized ecosystem that will enable users to exchange value and to interact with decentralized apps. VITE (pronounce “Vit”) intends to bind the most exciting technologies that have emerged from the blockchain world together.
Let’s make a very short list of these great techs:
1) VITE is a Directed Acyclic Graph, A.K.A. DAG
A DAG ledger’s most important specificity is that transactions are not stored in blocks. Transactions depend on each other in the form of… a graph!
There are 3 main advantages to that:
Transactions are communicated to the nearest peer instantly (less than 1 second)There is no mining involved: more efficient and eco-friendly DAG can scale indefinitely
2) The snapshot chain
Transactions are validating each other in a DAG. However, a transaction can be considered immutable when several dependant transactions have been published on the network. It can be compared semantically as Bitcoin or Ethereum transactions number of validation (such as when you deposit coins in an exchange). When two parties are exchanging a DAG cryptocurrency against a physical good, they expect the transaction to be instantly validated and definite, so the physical good owner is not subject to see the payment he received disappear because of a transaction rollback.
To prevent that, VITE a created a “Snapshot Chain”. A Snapshot represents the balance of each account of the network at a particular point in time. The VITE Snapshot Chain is taking a picture of the network every second and saves it in a blockchain similar as Bitcoin. Each block does not contain the list of every account’s balance, but only the balances that have changed since the previous blocks.
The Snapshot Chain is the best tradeoff between DAG and Blockchain: it enforces the consensus and makes sure transactions can be considered secure in few seconds.
3) 0 fees for users
No fees are required for basic users to engage with the VITE network. For those who have interacted with Ethereum Dapps for example, you know that the Gas dimension is a true pain point. Interactions with Dapps in Ethereum requires users to always have Ethers provisioned on their accounts, and each interaction is tapping a non-trivial amount of it!
In order to prevent network spamming, VITE introduces the concept of quotas. These are units that can only be used to perform interactions on the VITE network. Spending quotas are needed for each action, with a low amount for basic operations such as sending tokens or voting, and a larger amount for special interaction such as issuing a new token on the network or buying a domain name.
There are 3 ways to obtain quotas:
To do a proof of work calculation at the moment of the transaction.
This is a cheap and troublesome way to interact with the network without having to pay some tokens! And it is the best use case of PoW I have ever seen. It sounds complicated but is in fact very quick and transparent. For example, you are using your VITE wallet for the first time and want to vote for SwissVite! But you do not yet have quotas… No problem! When you click on the validation button, you will be prompted to launch a proof of work operation, and your computer will do it in less than one second!To mortgage a certain amount of VITETo destroy a certain amount of VITE
4) Smart contracts
VITE is supporting smart contract in a similar way as Ethereum!
Smart contracts are essential to enable to program business logic that will execute in a decentralized way. This is, in fact, another reason why the Snapshot Chain is needed. In order for smart contracts to be able to run efficiently on a blockchain, the order of transactions has to be fixed and immutable; and ensuring the order of transactions is not what a pure DAG is good at!
VITE has created a language that they have coined Solidity ++. It is based on Solidity and adds to it an asynchronous dimension.
5) Cross chain compatibility
VITE is known to be close to Loopring, which is a leader in cross blockchain protocols. Daniel Wang, the Loopring founder, is a strategic investor in VITE as well as a precious advisor.
In the future, Loopring decentralized exchange function will be built-in a wallet application built on the VITE platform! This means that the VITE wallet will enable VITE holders to exchange various tokens from several different blockchain trustlessly in few clicks!
On top of that, VITE has developed a cross-chain exchange protocol, originally named the VITE Cross-chain Transfer Protocol (VCTP).
6) Delegated Proof Of Stake, A.K.A. DPoS
In the first point, we stated that an advantage of a DAG is that the transactions are not included in blocks so there is no mining, but in the second part, we are talking about a blockchain! Why is that?
As said, the Snapshot Chain is an essential tradeoff for the speed and reliability of the network. The blocks are not created through mining (Proof of Work) like in Bitcoin and Ethereum. Blocks are “prepared” by chosen nodes in the network, called “Block Producers”. Anybody can become a Block Producer as long as their equipment and internet connection meets the requirements. A Block Producer also must lock 1million VITE into an account so he is incentivised for the good of the network.
25 nodes are constantly working on preparing blocks that store snapshots. In exchange of spending computing resources to secure the network, block producers receive VITE tokens in reward as long as they include Snapshots in new blocks. The rewards are taken from VITE supply inflation that is capped to 3% per year.
Any VITE holder can vote for the block producer of its choice in few clicks, by allocating VITE tokens. The more votes a block producer has, the more probability to produce blocks he gets. Voters get rewarded for allocating VITE to performant block producers.
2 main benefits of this system:
The speed of the Snapshot Chain blocks propagation is increased as there are a limited number of participants involved in its maintenance.Block producers are incentivised to act in favour of the development of the network and to listen to their electors.
SwissVite team members are hyped in this project. We all think that VITE has a great future, and we witness every day the dynamism of the core team! If you want to discuss with us, please make sure you join our Discord and Telegram channels, we will be happy to answer all of your questions!