Validity (VAL)

What is Validity (VAL)?

Validity (VAL) is a cryptocurrency token designed to operate within its own blockchain ecosystem. Formerly known as RadiumCore, the project launched in May 2015. The Validity blockchain incorporates features beyond standard cryptocurrency functionality, including functionalities related to identity, data verification, and governance. The project emphasizes a distributed data layer for secure and verifiable data management.

At its core, VAL serves as the primary medium of exchange and utility token within its platform. The associated platform aims to host a variety of features and functionalities, potentially including decentralized applications, industry-specific solutions, or a general-purpose blockchain infrastructure. The specifics of this platform define the role and importance of VAL, influencing its utility, rewards mechanisms, and governance applications. It is a Proof-of-Stake coin, meaning that it relies on users staking their coins to validate transactions and maintain the network.

How Does Validity (VAL) work?

Validity (VAL) operates on a Proof-of-Stake (PoS) consensus mechanism. In a PoS system, users stake their VAL tokens to become validators, responsible for verifying and adding new blocks to the blockchain. The probability of being selected as a validator is typically proportional to the amount of VAL a user has staked, encouraging users to hold and commit to the network. This approach contrasts with Proof-of-Work (PoW) systems, which require significant computational power to solve complex cryptographic puzzles.

Beyond its PoS consensus, Validity incorporates a distributed data layer within its blockchain. This layer supports features like identity-address linkage, proof-of-existence verification, file checksum validation, and decentralized elections. Identity-address linkage allows users to associate their real-world identities with their blockchain addresses, potentially enabling more trustworthy interactions. Proof-of-existence verification provides a way to timestamp and prove the existence of a document or piece of data at a specific point in time. File checksum validation allows users to verify the integrity of files stored on the blockchain, ensuring that they have not been tampered with. The system of decentralized elections offers a secure and transparent method for community governance and decision-making.

Validity (VAL) Key Features and Technology

• Proof-of-Stake (PoS) Consensus: VAL utilizes PoS, which promotes energy efficiency and reduces the computational resources required for transaction validation compared to Proof-of-Work.
• Distributed Data Layer: The integrated data layer enables advanced functionalities, including identity verification, proof-of-existence, and file integrity checks.
• Identity-Address Linkage: Allows users to associate their identities with their blockchain addresses, fostering trust and accountability.
• Proof-of-Existence: Provides a method to verify the existence of a document or piece of data at a specific point in time, enhancing security and authenticity.
• File Checksum Validation: Ensures the integrity of files stored on the blockchain by verifying their checksums, protecting against tampering.
• Decentralized Elections and Voting: Provides a secure and transparent platform for community governance and decision-making.

The underlying technology is designed to support a range of applications beyond simple transactions, contributing to the development of a more robust and feature-rich blockchain ecosystem. The distributed data layer and associated features expand the functionality of the Validity blockchain, offering solutions for identity management, data integrity, and decentralized governance. Justin Jacobeen serves as the blockchain architect, leading the technical development of the platform and its features.

What is Validity (VAL) used for?

Validity (VAL) serves multiple purposes within its ecosystem. As a cryptocurrency, it functions as a medium of exchange, facilitating transactions between users. Users may also stake their VAL tokens to secure the network and potentially earn rewards. Token holders may be granted governance rights, allowing them to participate in decision-making processes related to the platform’s development. Access to certain features or services on the platform may also require the use of VAL tokens.

The specific use cases of VAL are closely tied to the functionalities offered by the Validity platform. For example, if the platform facilitates decentralized file storage, VAL could be used to pay for storage space or to incentivize node operators. If the platform supports decentralized identity management, VAL could be used to verify identities or to reward users for providing accurate information. The use cases may also include paying transaction fees, or rewarding network validators and stakers.

How Do You Buy Validity (VAL)?

Purchasing Validity (VAL) typically involves using a cryptocurrency exchange. The specific exchanges that list VAL may vary over time, so it is essential to consult reliable sources like CoinGecko or CoinMarketCap for the most up-to-date information. The first step is typically to create an account on a supported exchange and complete any necessary identity verification (KYC) procedures. Once your account is set up and verified, you will need to deposit funds into your account. Most exchanges accept deposits in either fiat currencies (like USD or EUR) or other cryptocurrencies (like Bitcoin or Ethereum).

After depositing funds, you can then search for the VAL trading pair on the exchange. For example, if you deposited Bitcoin, you would look for the VAL/BTC trading pair. Then you can execute a buy order, specifying the amount of VAL you want to purchase and the price you are willing to pay. There are typically two types of buy orders: market orders, which are executed immediately at the current market price, and limit orders, which are executed only when the price reaches a specified level. Once your buy order is filled, the VAL tokens will be credited to your exchange wallet.

How Do You Store Validity (VAL)?

Securing your Validity (VAL) tokens requires choosing a suitable cryptocurrency wallet. There are several types of wallets available, each offering different levels of security and convenience. Exchange wallets are provided by the cryptocurrency exchanges where you purchase VAL. While convenient for trading, exchange wallets are generally considered less secure than other options because you do not control the private keys. Software wallets are applications that you install on your computer or smartphone. These wallets offer a balance of security and convenience, allowing you to store your VAL tokens locally. Examples of software wallets might include the official Validity wallet (if available) or other multi-currency wallets that support VAL.

Hardware wallets are physical devices that store your private keys offline, providing the highest level of security. These wallets are less convenient for frequent trading but offer excellent protection against hacking and theft. If you are holding a significant amount of VAL, a hardware wallet is generally recommended. Examples of popular hardware wallets include Ledger and Trezor, although you should verify compatibility with VAL before purchasing. Paper wallets are another option for cold storage, involving printing your private keys on a piece of paper and storing it securely offline. While offering high security, paper wallets are more complex to use and can be susceptible to damage or loss. When choosing a wallet, consider your individual security needs and technical expertise. Always back up your wallet and private keys to prevent loss of funds.

Future Outlook and Analysis for Validity (VAL)

The future outlook for Validity (VAL) depends on several factors, including the continued development and adoption of its associated platform, the overall growth of the cryptocurrency market, and the competitive landscape of blockchain projects. The project’s focus on data integrity, identity management, and decentralized governance positions it to potentially address real-world needs and attract users and developers. However, success will require effective marketing, strong community engagement, and ongoing innovation.

The competitive landscape is crowded with numerous blockchain projects vying for attention and market share. Validity (VAL) will need to differentiate itself by demonstrating tangible benefits and delivering on its promises. The successful implementation of its distributed data layer and associated features, such as identity-address linkage and proof-of-existence, will be crucial. The project’s ability to foster a vibrant ecosystem of decentralized applications and partnerships will also play a significant role in its long-term viability. Furthermore, regulatory developments in the cryptocurrency space could impact the adoption and use of VAL, requiring the project to remain adaptable and compliant. Overall, the future of Validity (VAL) hinges on its ability to execute its vision, navigate the evolving market dynamics, and build a strong and sustainable community.

References

• CoinGecko
• CoinDesk