How VeChain (VET) solved an inherent crypto problem most other projects don’t even think about

When choosing the name for their blockchain, it seems that founders of VeChain wanted to imply that the only chain you will need is theirs as ‘VeChain’ means ‘the only chain’.

And the VeChain team continues to be serious about justifying the name: they keep adding new partners and explore innovative solutions for the Internet of Things industry.

Back in April, VeChain introduced their Multi Party Payment protocol, a feature that enables an end user, who doesn’t even own crypto or know their dApp is based on a Blockchain system, to use the dApp. Instead, a sponsored third party picks up the transaction cost. No other project has this capability currently. Put in plain language, MPP enables this type of value flow in VET: Person A sends 10 VET to Person B and Person C pays for it.

So the enterprise deploys the smart contract on an App and the user can use it like any normal app while the enterprise covers the costs of uploading the data with their own Thor balance. The user never even knows they are interacting with a blockchain.

Enterprise can also choose to go through a third party as sponsor if they do not wish to deal with crypto.

Example, Enterprise pays fiat to sponsor. Sponsor handles VeThor and pays for the user that also does not need to know about blockchain.

This is another step in the evolution of the design of cryptocurrencies and a textbook example of the road crypto needs to take to see massive adoption, as it takes us one step forward to have the masses use crypto without them even knowing that they are using it. MTT also helps reduce costs for developers too by bundling multiple clauses in one transaction.

In the VeChainThor Blockchain, the developers came up with a novel multi-layer payment model, where a transaction can be paid by three different parties. They are the transaction sender, the smart contract which the transaction’s recipient, or the contract’s sponsor.

With MPP, VeChain solved a problem most people don’t even realize exists with other cryptos and their use cases.

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Torsten Hartmann
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

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