- VeChain is more aligned to the MiCA energy rules as affirmed by its Carbon Calculator tool.
- The VeChain tool may come in handy for other protocols tilting towards achieving compliance.
VeChain (VET), the enterprise-grade layer-1 blockchain protocol is on track to become one of the biggest beneficiaries of the new Markets in Crypto Assets (MiCA) regulation that has been passed by the European Parliament earlier this month. While compliance with the laws will not be demanded until next year, creating the technology to meet every aspect of the law may prove daunting for many protocols.
In reality, the digital currency ecosystem has been yearning for comprehensive digital currency regulation for quite some time. While the approach to developing a global and encompassing regulation is still being stalled at the G7 level, individual countries are now making the strides to take the bull by the horn and chart their own way forward.
Amongst the regions, the EU has made history as the first to launch a uniform set of laws that will be governing the nascent asset class and startups providing services bothering around them. The laws address several aspects including consumer protection, registration of tokens and exchanges, stablecoin reserves, and most importantly, energy consumption amongst others.
Herein is where VeChain will have a competitive advantage. Besides the fact that the protocol is designed to be as energy efficient as possible, it is promoting the ethos of transparency through its Carbon Calculator tool that was developed in conjunction with DNV, a certification expert.
See the carbon impact of every single transaction and smart contract interaction at https://t.co/grYAM7Ec5A, thanks to the recently launched carbon calculator, created in consultation with certification experts, DNV. #vechain #crypto #sustainability $VET https://t.co/i5Ag7Vso8y
— vechain (@vechainofficial) April 24, 2023
According to VeChain, the Carbon Calculator has made it possible to see the carbon impact of every single transaction and smart contract interaction at vechainstats.com. This implies that regulators can easily verify whether or not VeChain transactions and associated protocols are truly energy efficient as claimed or not.
VeChain setting the standards for MiCA compliance
Many protocols operate using the Proof-of-Stake (PoS) consensus mechanism. Ethereum (ETH), Cardano (ADA), and Solana (SOL) are some of these blockchain networks. While these will have a relatively better standing with EU Regulators in adherence to the MiCA rules that demand energy accountability than their Proof-of-Work (PoW) counterparts like Bitcoin, both are still below the standard being brandished by VeChain.
The claims of efficient energy utilization by PoS protocol are based on the model of the technology but not because there is a formal verification system as the VeChain Carbon Calculator tool.
In order to stay compliant, protocols operating in the EU may need a similar tool as what VeChain has spent a considerable time developing. Depending on how events shape up in the coming months, VeChain might attract a larger market as some protocols might opt-in to use the protocol’s application rather than develop a whole new one in need to stay compliant.
VeChain has continued to outdo itself and it is positioned to penetrate and serve the multi-billion Web2.0 and Web3.0 industry within the European Union and around the world.
