VSG Whitepaper
  • VSG: Revolutionizing Digital Transactions and Financial Inclusion on the VSC Blockchain
  • Table of Contents
  • 1. Abstract
    • Overview of VSG Token
    • Transition to VSC Blockchain
    • Key Features and Goals
  • 2. Introduction
    • Background of VSG on Ethereum
    • Purpose of Bridging to VSC
    • Overview of Whitepaper Structure
  • 3. Problem Statement
    • High Transaction Fees on Existing Platforms
    • Scalability Issues with Current Solutions
    • Security Concerns in Traditional Systems
    • Financial Inclusivity Challenges
  • 4. Objectives
    • Reduce Transaction Costs
    • Achieve Scalability on VSC
    • Enhance Security Measures
    • Promote Financial Inclusion through Accessible Tools
  • 5. Technical Architecture
    • 5.1 Current State on Ethereum
      • ERC-20 Standard Compliance
      • Existing Use Cases and Limitations
    • 5.2 Transition to VSC
      • Bridging Process and Technology
      • Expected Improvements and Benefits
    • 5.3 VSC Blockchain Protocol
      • Consensus Mechanism: Hybrid PoS/DPoS
      • Smart Contract Capabilities
      • Scalability Solutions: Sharding and Layer 2
    • 5.4 Hyper-Deflationary Mechanism
      • $1 from Each Transaction Allocated to Buy and Burn
      • Impact on Token Supply and Value
  • 6. Governance Model
    • Decentralized Autonomous Organization (DAO)
    • Proposal and Voting Process
    • Role of VSG Token Holders in Governance
  • 7. Economic Model
    • 7.1 Token Distribution
      • Initial Distribution on Ethereum
      • Post-Bridge Distribution on VSC
      • Allocation: Team, Development, Community, Reserve
    • 7.2 Incentive Mechanisms
      • Staking Rewards
      • Transaction Fee Distribution
      • Community Engagement Programs
  • 8. Security Measures
    • 8.1 Consensus Security
      • Mitigating 51% Attacks on VSC
    • 8.2 Smart Contract Audits
      • Regular Third-Party Security Audits
    • 8.3 Anti-Fraud Mechanisms
      • Monitoring Systems
      • AI-Based Anomaly Detection
  • 9. Use Cases
    • 9.1 On-Chain Transactions
      • Transactional Tool for dApps
    • 9.2 Cross-Border Payments
      • Low-Cost, Fast International Transfers
    • 9.3 Decentralized Finance (DeFi)
      • Access to Lending, Borrowing, and Investing on VSC
    • 9.4 E-Commerce
      • Merchants Accepting VSG for Goods and Services
    • 9.5 Financial Inclusion
      • Providing Banking Solutions to Unbanked Populations
  • 10. Roadmap
    • The VSG Roadmap
  • 11. Conclusion
    • Summary of VSG and VSC’s Vision and Impact
  • 12. References
    • References and Citations
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  1. 2. Introduction

Background of VSG on Ethereum

The VSG Token was launched on the Ethereum blockchain as an ERC-20 token, leveraging Ethereum's robust and well-established infrastructure. As an ERC-20 token, VSG benefited from Ethereum's extensive developer community, high liquidity, and integration with a wide range of decentralized applications (dApps) and decentralized finance (DeFi) platforms.

Initial Objectives:

  • Secure Transactions: VSG aimed to provide secure and transparent transactions through Ethereum's proven blockchain technology.

  • DeFi Integration: By being part of the Ethereum ecosystem, VSG was able to integrate with various DeFi platforms, allowing users to participate in decentralized lending, borrowing, and other financial services.

  • Liquidity and Accessibility: Ethereum’s broad adoption ensured that VSG tokens were easily accessible and tradeable on major cryptocurrency exchanges.

Achievements on Ethereum:

  • Wide Acceptance: VSG gained traction within the Ethereum community, being used for various transactional and investment purposes.

  • Community Building: A strong community of holders and developers emerged, contributing to the token’s growth and adoption.

  • DeFi Participation: VSG holders engaged with multiple DeFi platforms, leveraging their tokens for staking, lending, and other financial activities.

Challenges on Ethereum:

  • High Transaction Fees: One of the significant challenges was the high gas fees on the Ethereum network, which made transactions costly, especially during network congestion.

  • Scalability Issues: As Ethereum faced scalability problems, the transaction speed and efficiency were affected, impacting the user experience.

  • Network Congestion: During peak times, network congestion on Ethereum led to slower transaction processing times and higher costs.

These challenges highlighted the need for a more scalable and cost-effective solution, prompting the decision to transition VSG to its own layer 1 blockchain, VSC. This transition aims to overcome the limitations of Ethereum while preserving the strengths and capabilities that initially attracted users to VSG. The VSC blockchain will provide a dedicated infrastructure to optimize VSG’s performance, scalability, and utility, ensuring a better user experience and broader adoption in the future.

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Last updated 11 months ago