What is Velas?

Velas — an acronym for virtual expanding learning autonomous system — claims to be the world's fastest Ethereum virtual machine (EVM) blockchain and open-source platform for decentralised projects and applications. Its network encompasses a diverse range of decentralised applications (dapps), including VelasPad and BitOrbit.

Inspired by the values of Web3 and blockchain technology, Velas’s mission is to “create and integrate world-changing technology products and services to improve people’s lives all over the world and make the [I]nternet free again — like it was before.”

In addition to its highly efficient codebase, the Layer-1 blockchain leverages a unique, innovative consensus mechanism that it calls ”artificial intuition delegated proof of stake” (AIDPoS) as part of its effort to solve ‘the blockchain trilemma’ of making decentralised platforms both scalable and secure.

The VLX token is native to the Velas platform. It is used for transactions, payments, and fees.

A brief history of Velas

Alex Alexandrov, a well-known blockchain and cryptocurrency entrepreneur, established the Velas ecosystem firm in 2019. He is also a founder of CoinPayments, a digital currency payment solution; an advisor and investor of Mind AI, a well-known Korean AI startup; and consultant to the FBI, Europol, and several national governments on everything from technology and cybersecurity to blockchain and AI implementation.

The community-driven Velas project was developed with an emphasis on scalability, security, and decentralisation. The Velas blockchain is a fork of Solana, with embedded EVM integration, which supports all smart contracts and dapps built on the Ethereum stack. Its mainnet was launched in 2019.

In August 2021, Velas unveiled its grants program, designed to support the growth of the Velas ecosystem and expand its reach in the new Web3 epoch. In April 2022, the Swiss-headquartered company announced that it would be expanding its variety of services by introducing a new fund and accelerator program to support talented developers and entrepreneurs.

As of June 2022, Velas has a circulating supply of 2.1 billion VLX and a total supply of 2.2 billion. There are currently 160 validators operating on the network.

How Velas works

Billed as the world’s fastest EVM-compatible blockchain, Velas is capable of processing up to 75,000 transactions per second (tps) with instant finality, low fees, and Solidity support. To put this into perspective, Bitcoin processes around seven transactions per second, while VISA processes around 1,700 transactions per second. Velas achieves this high level of scalability completely on-chain.

The native Velas token (VLX) is the utility token of the Velas network that can be used in three ways:

Users can stake VLX and receive rewards for block validation

Users can access or pay for services within the Velas ecosystem

Users can trade VLX or treat it as an investment

There are two options for staking in the Velas system — users can either create their own pool and become a validator or join an existing pool as a delegator. To become a validator, users are required to have at least 1 million VLX tokens. Delegators need to have only 1 VLX, but they vote on potential validators by staking tokens on those potential validators. In return, delegators receive a share of block rewards and transaction fees, proportionate to the amount of tokens staked.

Unlike other virtual machines (VMs), the Velas blockchain network's VM employs the AIDPoS consensus mechanism. Essentially, it is Delegated Proof of Stake (DPoS), with the addition of artificial intelligence (AI). This unique, AI-controlled algorithm uses AI to adapt the blockchain to current circumstances within the network. This includes automatically calculating the optimal reward for node operators, VLX stakers, and block discovery times. This algorithm acts as an objective ‘guardian’ of the network, ensuring that it stays secure, resilient, and productive for all participants, while reducing the risk of human error.

What is Velas used for?

Velas (VLX) tokens are used for transactions, payments, fees, and supporting DPoS consensus. Its blockchain aims to provide a faster, cheaper, and more usable blockchain ecosystem for daily use. Some use cases of the Velas blockchain include token swapping with WagyuSwap, social media with BitOrbit, as well as full support for decentralised finance (DeFi) and non-fungible tokens (NFTs) developed on Ethereum or an EVM blockchain.

Users of the Velas platform can own a smart contract on the blockchain, run multiple transactions at high speed, and lots more. Its main products include Velas Account, Velas Vault, Velas Wallet, and Staking.