At VAIOT we aim to not just be innovative for the blockchain or artificial intelligence space, but also for everyday, off-chain consumers. In today’s article, we’re discussing the possibilities of the VAIOT Value Assurance System (VVAS). First, let us talk a bit more about what it is and how it works.
As we’re all aware after recent blockchain events, digital assets are often subject to significant price fluctuations. Since the token value may not be as stable as in the case of Fiat currencies, it can be difficult to decide its purchasing power. Thus, to mitigate risks for token and intelligent contract users, the VAIOT Value Assurance System (VVAS) is introduced as part of the Intelligent Contracts concept.
In essence, the VVAS acts like a simple currency exchange, where the users decide how much they want to pay in USD and fix the price for a set period. The longer the period, the better the result. For example, at the time of the transaction, a specific exchange rate is offered to show the VAI Token conversion rate to a given Fiat currency, e.g., EUR. The user accepts the exchange rate, which is guaranteed by the validator committee (a group of nodes) and secured with the funds from the growth pool (see the definition below). The value of the conversion rate depends on the current price of the VAI Token, the market situation, and the duration of the contract settlement. The proposition is calculated by VAIOT algorithms used by validators (nodes) with the support of AI. When the exchange rate is calculated correctly, the transaction proceeds as agreed, and nodes receive help from the brokerage.
With this, the VVAS aims to not just solve the quick decisions that need to be made in the current Forex market and secures the price for Intelligent Contract users. Naturally, the price rate depends on the market condition and price action of the specific pair. However, what makes this so unique is that the operation won’t just be for Intelligent Contract users. Instead, it will also be profitable for notes and the algorithm and thus it will be an extra source of income for the running notes on the VAIOT blockchain network. Then, there are the possibility for other (blockchain) projects to integrate this kind of payment mechanism into their smart contracts, to assure that their token value won’t be affected.
- The VAIOT Value Assurance System is expected to launch in 2022.
Why have we chosen this product for VAIOT?
Now you might wonder, with all these products and services coming out over the next months and years, why have we chosen to also create the VAIOT VVAS? Well, the answer to that is straightforward. At VAIOT we care about the interest of our users, and we want to create the most secure environment for everybody that uses VAIOT’s products. The VVAS will give security and will also put new machine learning algorithms into action. Thus, we are extremely excited to be able to introduce the VVAS to you. In the next paragraph, we will be talking about the VVAS possibilities.
VVAS Potential Use Cases
- Decrease the risk of payment for volatile assets such as Cryptocurrencies.
- The VVAS could figure as an additional source of income for nodes and algorithms on the VAIOT Blockchain.
- The VVAS would offer space for Machine Learning Algorithms to learn even more and offers the possibility of an additional Machine Learning Algorithm on the VAIOT Chain.
- The VVAS reduces the supply of $VAI available on the market, as participants need to use their tokens as collateral in order for them to earn on the brokerage.
- VAIOT AI Insurance Broker & Aggregator platform as well Intelligent Contracts will get more and more interest from the retail clients. This will cause an increased demand for the VVAS service as the payment frequency will increase
- The VVAS offers the possibility for integrations with external payment networks, in which the payments are done with digital assets.
- Serve Intelligent Contracts on a broader scale and increase the possibilities of AI-enhanced contracts.
- The VVAS reduces the need for trading back to stable coins as the stable Exchange rate is secured by VVAS.
- Part of Broker platform where users can get protected against a price dump while obtaining services.
- Building network effect by allowing other tokens to be integrated.
For more information about VAIOT, visit our website www.vaiot.ai, or have a look at our Twitter and Telegram Community.
The VAIOT Website, Platforms, Solutions, and Services, and in particular VAI Tokens, are not offered for use and purchase to natural and legal persons having their permanent residence or their seat of incorporation in any of the restricted areas as listed in VAIOT’s Whitepaper, in particular: USA, Germany, Puerto Rico, US Virgin Islands, Canada, China, Singapore, Afghanistan, Central African Republic, Cuba, Democratic Republic of the Congo, Eritrea, Iran, Iraq, Libya, North and South Korea, Somalia, South Sudan, Sudan, Yemen, Zambia (Restricted Areas).
