Have you heard about the new development in VeChain, the multi-party payment protocol? If you haven’t then you have been missing out. You know that feeling you get when you want to send crypto to someone but have to pay transaction fees you don’t want to pay? Well MPP gives you more ways to pay transaction fees. In this article, we will be talking about everything you need to know about the VeChain MPP.
What is the VeChain MPP?
To simply put, MPP is a new development in VeChain that allows its users to pay for transactions in more ways than they thought possible. With MPP, senders can pay for a transaction, or make the recipient pay it or the sponsor. The importance of this development is that it enables you to send a certain about of crypto without having to worry about transaction fees.
Terms used to describe the VeChain multi-party payment protocol
The sender is the person who is sending a certain amount of VeChain. While on most crypto networks, the sender is often the one that pays for the transaction, but with MPP, the sender can choose to pay or the transaction fee if the other corresponding account (sponsor and recipient) fails.
The person who receives the VeChain the sender is sending is known as the recipient. Similarly, the recipient can as well pay for a transaction that is if deducting it from the sponsor’s account fails.
The whole essence of MPP is to allow someone else other than the sender to pay a transaction fee. So, the account that sponsors the payment of the transaction fee is known as the sponsor. As a sponsor, VeChainThor will first try to deduct the transaction fee from your balance before trying to deduct it from the recipient.
The term user is something you will also see a lot in the VeChainThor MPP. Now, on the VeChainThor network, you can register other accounts as a user. When registered, they can conditionally pay for the cost of transactions that are sent to them provided it meets the criteria.
Lastly, there is the credit term. You don’t see this term all that often, however, it means an available VHTO that is used to pay for a transaction cost, particularly users of an account.
What problem does the VeChain multi-party payment protocol solve?
As you should already know by now, one of the main problems the VeChain multi-party payment protocol solves is that it enables other parties to pay a transaction fee. But is that all the problem the VeChain MPP solves? Well, no! The VeChain MPP also simplifies adopting a public blockchain as well as dealing with crypto assets. For enterprises, the VeChain MPP is particularly important as it simplifies crypto policies making it possible for them to accept it as a payment method. Individuals equally don’t need to crack their brains trying to understand the technical part of crypto.
How does the VeChain multi-party payment protocol solve issues?
Quite frankly, the VeChain multi-layer payment protocol is brilliant. It enables three parties to be able to pay for a blockchain transaction; the recipient, sponsor, and sender. When the system wants to charge the transaction fee, it follows the steps below.
The first thing the system does is to check if the sender can waive the transaction fee. It also checks whether the sender’s sponsor agrees to pay the fee. If the system confirms the answer to these questions is yes, then it first tries to deduct the fee from the sponsor’s balance.
If the sponsor does not have enough funds the fee-charging fails, the system then proceeds to deduct the transaction fee from the recipient account.
At this stage, if the deduction fails again, then the system tries to deduct the fee from the sender’s account. If the deduction fails yet again, then the fee-charging goes to error and the payment is not complete.
To sum things up, the VeChain MPP is a model that is quite helpful to both individuals and enterprises. This new technology is quite an improvement that should make you even more interested in VeChain. Because one thing you will see quite often in the cryptocurrency world is that there is always something unique about most coins. And with VeChain, the MPP is a welcomed development. If for this reason, you want to buy VeChain, Bitvavo is a sure plug.