The Vectorium ecosystem brands itself on using sustainable energy to provide eco-friendly “green mining” facilities to mine the VECT coin, often referred to as the VECT token. Also, the Vectorium app enables super-fast cross-border transactions with low fees. With a strong focus on environmentally-friendly cryptocurrency mining, the project aims to establish an equitable long-term solution to intensive cryptocurrency mining that empowers smaller miners.
In this article, we’re going to dive deep into the Vectorium ecosystem. We’ll discuss the VECT coin, green mining, and the Vectorium app. Plus, we’ll explore some of the core technologies underpinning the project. Furthermore, we’ll break down why eco-friendly cryptocurrency mining is becoming increasingly important and the issues that Vectorium aims to tackle.
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What is Vectorium?
Vectorium is a smart contract-enabled blockchain that uses green mining and artificial intelligence (AI) to track digital assets and goods. The native VECT coin (or VECT token as it is often referred to) is an “ultra-rare cryptocurrency”. It is generated using waste energy, sustainable resources, and eco-friendly mining equipment.
Traditional mining equipment built for Proof-of-Work (PoW) consensus algorithms tends to require considerable amounts of energy to run. Also, as blockchains become larger, the cost of confirming transactions tends to increase. Coupled with rising electricity prices and a global shift towards renewable and sustainable energy, Bitcoin mining and other PoW blockchains have come under increased scrutiny over the sustainability of high-intensity mining.
Furthermore, the concentration of hash power often creates large pockets of energy consumption that can hinder decentralization, causing network problems. When highly concentrated regions stop mining, it can cause disruptions to the network. Plus, expensive mining equipment means that you have to spend more money on machines and electricity to validate blocks. Moreover, miners who have more machines and access to cheaper electricity are more likely to make a profitable income with cryptocurrency mining than those that don’t.
However, Vectorium addresses these issues by distributing the hash rate of its Equihash 192_7 PoW algorithm throughout the community in a way that benefits smaller miners and provides a stable, equitable passive income for all miners. Furthermore, Vectorium uses green mining facilities that lower the barrier for entry to participate in cryptocurrency mining.
Vectorium enables users to vectorize goods and store and trace data transparently on the blockchain. Plus, the Vectorium ecosystem helps to reduce counterfeit products throughout global supply chains. Moreover, the Vectorium app boasts super-fast transaction speeds with low fees to facilitate a frictionless buyer/merchant experience.
According to the Vectorium whitepaper published in October 20219, the Vectorium ecosystem will comprise many novel technologies and ideas to facilitate green mining facilities. However, many of these initiatives are yet to launch or go public. Also, according to a tweet from March 2021, the Vectorium whitepaper is in the process of gaining some new features, which will be “online soon”.
Vectorium Merchants program
The Vectorium website states that merchants can enter the “Vectorium Merchants program” to accept cryptocurrency payments. Currently, there is no further information available about this initiative.
Available in eight languages, the Vectorium online desktop crypto wallet enables users to send, receive and store VECT coins. Also, the Vectorium wallet is essential for participating in VECT token mining.
The Vectorium app is a mobile application for sending cross-border payments and exchanging currencies. Available for iOS and Android, the Vectorium app aims to provide a frictionless digital payments service with cryptocurrency support and “global connectivity”.
Vectorium Flash Token (VECT)
The Vectorium Flash token (VECT), or “VECT coin”, is a mineable cryptocurrency at the heart of the Vectorium ecosystem. The VECT coin is an equihash-based cryptocurrency and “the core asset of the new Crypto Energy project that will lead us into a new era”.
Using the Zcash 2.0 codebase to implement Sapling and Overwinter security, the method that generates the VECT token allows for super-fast block times and transaction confirmations. With a self-reported circulating supply of 15.4 million according to CoinMarketCap, the VECT token is verifiably scarce. Also, the VECT token emission schedule is slow, making it equitable for solo mining.
Vectorium Plus (VCTP)
According to the Vectorium whitepaper, the Vectorium Plus token (VCTP) is part of an “enhanced” Proof-of-Stake (PoS) system that will become corporate equity after four years, providing a fixed annual bonus rate of 20%.
Whereas the Vectorium Flash Proof-of-Work (PoW) miners compete to solve mathematical equations to validate transactions, VCTP stakers lock up funds to secure the network and validate transactions. However, unlike PoW miners, VCTP stakers, known as “forgers”, only receive transaction fees and do not receive block rewards.
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Often, Proof-of-Work (PoW) blockchains such as Bitcoin require increasingly large amounts of energy for mining. The concept of “green mining” is a hot topic of discussion from influential public figures, including Tesla CEO Elon Musk. There is a consensus that for mass adoption of blockchain to succeed, there is a strong need for sustainable cryptocurrency mining. However, Vectorium is taking the concept of green mining to the next level with various novel technologies that aim to harness unused energy to power cryptocurrency mining equipment.
All VECT tokens are mined using renewable electricity via Vectorium Islands. Islands are facilities that can produce renewable energies while also producing cryptocurrency. Furthermore, Vectorium Islands can harness energy from waste, hydro, wind, and solar sources to facilitate sustainable, environmentally-friendly cryptocurrency mining. Moreover, the Vectorium ecosystem relies only on renewable energy sources for VECT coin generation.
Becoming a green miner with Vectorium enables participants to make a passive income with crypto. Moreover, there are no restrictions by hardware requirements or GPU quantity limits. Anyone can apply to become a VECT miner. Following a successful application and audit, participants can contribute to the Vectorium ecosystem. The application prompts potential users to outline any eco-plans they may have in mind and state any current equipment, facilities, or initiatives in which they may be involved. Also, applicants must prove that they use renewable energies using a Green Certificate, GSE contract, or Origin Certificate from their energy provider, depending on the region.
The Vectorium protocol uses transparent addresses similar to the public addresses used by the Bitcoin protocol. All transactions made using transparent addresses interact with the Vectorium Transparent Value Pool (TVP), which makes transactional data publicly viewable on the Vectorium blockchain.
Additionally, the protocol uses “shielded addresses” for private transactions. Shielded addresses use zk-SNARKs to provide enhanced security for private transactions. These transactions will be of benefit to governments, institutions, and enterprises.
Crypto Carbon Credits
Those who participate in the Vectorium ecosystem will be able to buy and trade “Crypto Carbon Credits Certificates”. These carbon credits can be created simply by holding and validating VECT tokens and are exchangeable throughout emissions trading system (ETS) markets.
Carbon credits represent the permission to emit greenhouse gases (GHGs). Credits minimize the use of carbon dioxide and other GHGs. A single carbon credit enables the emission of one tonne (or the equivalent) of GHGs. Because these emissions are subject to restriction, carbon credit markets exist to allocate emissions among regulated industries.
The aim of this system is to enable markets to push industrial and commercial practices toward lower carbon emissions by applying a cost to emitting GHGs. Vectorium will tokenize carbon credits on the blockchain to make them publicly accessible and verifiable.
When multiple energy producers come together to form a Consortium, they can create a network of “prosumers” that make up the “micro-grid”. Consortium members will be able to contribute to the Vectorium ecosystem by using graphics cards, solar panels, and field-programmable gate array (FPGA) devices to mine the VECT coin.
The Sapling network update will improve the efficiency of shielded transactions and provide a site for greater utility and adoption of the Vectorium ecosystem and Vectorium Flash shielded addresses. Also, payments made using Sapling z-addresses take just a few seconds to complete, using only 40 megabytes of memory.
Overwinter is a network upgrade that was first introduced by Zcash. The Overwinter upgrade will be the first for Vectorium Flash, and will pave the way for future updates to the Vectorium ecosystem. Key features of the upgrade include performance optimizations, versioning, replay protection, and transaction expiry.
Why Use Vectorium?
Vectorium aims to create a network of independent VECT coin miners to participate in a new form of distributed cryptocurrency mining. Furthermore, the Vectorium ecosystem creates incentives for green mining initiatives that convert waste or excess energy into cryptocurrency.
As energy prices continue to increase, sustainable alternatives to computationally intensive mining models are becoming more important than ever. The project clearly states the VECT coin is not for speculation. Rather, it represents a fixed value that relates to the cost of electricity.
With transaction confirmations of under one second, the Vectorium app facilitates seamless cross-border payments. Further, these payments incur much lower fees than comparative services offered by traditional payments services. Coupled with equitable community mining pools and eco-friendly initiatives, the project aims to decrease the concentration of cryptocurrency mining and provide a long-term alternative to large-scale mining farms.
What is Vectorium and the VECT Coin? Summary
Despite plans to make adjustments to the whitepaper, the Vectorium team’s commitment to green mining using sustainable resources remains unchanged. Plus, the project aims to make cross-border settlements and payments accessible to all. Moreover, Vectorium facilitates secure decentralized file storage on the blockchain with lightning-fast transactions and advanced data tracking features.
In response to the increasing energy requirements of legacy Proof-of-Work (PoW) blockchains, Vectorium is creating an environment that promotes the use of renewable and surplus energy for cryptocurrency mining. Plus, mining the VECT coin is cost-effective for solo miners and could be a viable means to making a passive income with crypt.
As research and development continues industry-wide, eco-friendly mining technology is becoming increasingly available, minimizing the impact on the environment. To learn more about how businesses can benefit from implementing blockchain, see our Blockchain Business Masterclass course! Ivan on Tech Academy is the perfect place to kickstart your education and career in blockchain!
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