Digital Asset Research Publishes In-Depth Analysis of VeChain (VEN)

  NEW YORK, NY - 06/26/2018 (PRESS RELEASE JET)

Digital Asset Research, Inc. (“DAR” or “the Company”), the world’s leading provider of cryptocurrency research and data for institutional investors, has published a 26-page analysis of the VeChain network and VEN digital asset. VeChain is a project that attempts to use the immutability of blockchains to store supply chain data and is set to launch its mainnet on June 30. The report includes an overview of VeChain’s software and system architecture, an examination of the project’s history, and an analysis of risks facing the project. 

The VeChain client, “Thor Core,” is largely based on Geth, the Go implementation of the Ethereum protocol, but with changes to support a consensus algorithm called “Proof-of-Authority.” Common criticisms of Proof-of-Authority structures are that there is no collateral forfeiture other than loss of reputation or ability to participate in the network, and such structures often lead to high levels of centralization. Gregory Cipolaro, CEO at DAR, said: “Whether decentralization is required for what the project is trying to accomplish comes down to one’s philosophical beliefs about decentralization and the value of censorship-resistance.”

Other key risks identified in the report include exchange risk, since more than 80% of VEN trading volume occurs on two exchanges and the technical issue that has been referred to as “blockchain bloating,” a potentially unmanageable increase in the size of the blockchain. Lucas Nuzzi, Director of Technology at DAR, said, “An archival Ethereum Geth node requires nearly 1TB of space. Because storage requirements for supply chain management systems are arguably more onerous than the average Ethereum smart contract, it would not be unreasonable to expect that VeChain might also be susceptible to blockchain bloating.”

DAR has published some of its findings on Medium here. 

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About Digital Asset Research, Inc.

Digital Asset Research is a collection of technologists, developers, traditional investment analysts, legal scholars, and economists. The Company was formed in response to meet the growing need for institutional quality research in the nascent digital token space. It is the Company’s objective to provide unbiased research, analysis, and insights for hedge funds, family offices, venture capitalists, and traditional asset managers. For more information, please visit https://www.digitalassetresearch.com/

Matthew Gertler
Digital Asset Research, Inc.
info@digitalassetresearch.com