Vector Smart Chain (VSG): Where blockchain meets the real world
As blockchain technology continues to disrupt and reshape various sectors, there are still challenges to applying this innovative technology in real-world scenarios, especially for enterprises.
Against this backdrop, Vector Smart Chain has been developed. This Layer 1 (L1) blockchain is designed to provide a secure, interoperable and cost-efficient environment for decentralized applications (DApps) across various sectors.
Its developer-friendly platform aims to make financial services affordable and accessible in the real world. At the heart of its operations is its native token, the Vector Smart Gas token (VSG), which fuels transactions, is used for governance and secures the platform through staking.
Let's learn more about Vector Smart Chain’s Layer 1 blockchain.
Key Takeaways:
Vector Smart Chain (VSG) is a Layer 1 blockchain designed to drive mass adoption by providing a secure, scalable and interoperable network for real-world use.
VSC features a unique hybrid consensus mechanism that combines proof of stake (PoS) and delegated proof of stake (DPoS) models, and is Ethereum virtual machine (EVM)-compatible and interoperable with Cosmos.
Its native token is VSG, which fuels transactions on the chain and powers the platform’s decentralized autonomous organization (DAO) governance model.
What is Vector Smart Chain?
Vector Smart Chain is a Layer 1 blockchain designed to power DApps across various sectors by providing a secure, scalable and interoperable blockchain-based ecosystem. It (VSC) features Ethereum virtual machine (EVM) compatibility, which allows developers to seamlessly deploy or move their Ethereum-based smart contracts without rewriting codes. Furthermore, VSC is interoperable with the Cosmos blockchain, which enhances cross-chain communication between these networks and integration with Ethereum-based DApps.
At its core, VSC uses a hybrid consensus mechanism combining proof of stake (PoS) and delegated proof of stake (DPoS) consensus mechanisms. Within the PoS segment, validators stake VSG tokens to produce new blocks and validate transactions, while the DPoS part allows token holders to select a smaller, elected set of block producers to propose and confirm blocks.
This dual-layer model merges the security and decentralization of PoS with the speed and efficiency of DPoS, delivering fast block finality and resistance to attacks.
In summary, the key features of Vector Smart Chain protocol are as follows:
Sharding technology — Sharding (partitioning the blockchain into smaller “shards”) enhances a blockchain network’s throughput and capacity via parallel transaction processing across multiple shards, which translates to scalability.
Off-chain transactions — VSC offers Layer 2 solutions, such as sidechains and roll-ups, that take tasks from the main chain via off-chain processing and settlement, which translates to faster and more cost-effective transactions.
Optimized consensus mechanism — By combining PoS and DPoS consensus mechanisms, VSC achieves faster transactions with less energy consumption without compromising security and decentralization.
Predictable fees — VSC charges a flat rate of $4 per transaction, eliminating unpredictability and variability in transaction costs.
Interoperability — VSC is interoperable with major blockchains like Ethereum, Cosmos, BNB Smart Chain and Solana, which deepens liquidity, enhances accessibility and fosters scalability.
Vector Smart Chain real-world uses
Besides facilitating a broad array of web3 uses [such as GameFi, non-fungible-tokens (NFTs) and decentralized autonomous organizations (DAOs)], thanks to its interoperability and swift and affordable transactions, VSC offers the ideal infrastructure for various uses in real life.
Real-world asset tokenization — VSC can act as a bridge for digital and physical assets, and can be used to tokenize real-world assets — such as property or commodities — thus enabling fractional ownership, secure title transfers and transparent supply chain finance.
Supply chain and logistics — VSC can automate payments and logistics agreements by using smart contracts to reduce friction and boost operational efficiency. It also offers real-time monitoring of deliveries and logistics optimization, reducing companies’ costs.
What is Vector Smart Gas?
Vector Smart Gas (VSG) is the native utility token for Vector Smart Chain. It’s designed to fuel transactions on the network, secure the network via staking and power governance via DAOs.
VSG initially launched on the Ethereum blockchain as an ERC-20 token, but has since been migrated to VSC to ensure faster, low-cost transactions.
The main reason VSG migrated to VSC is to reduce the fees incurred when using the token. Once fees have been reduced, the token can overcome a large barrier to adoption and usage, especially for micro and daily transactions.
Migrating the VSG token from Ethereum to Vector Smart Chain involves a bridging process that begins with locking VSG tokens on a designated smart contract on Ethereum. After locking occurs, a corresponding representation of the token is generated on VSC, a process powered by cross-chain communication and smart contract interoperability between the two chains.
The initial total supply of VSG was 10 billion, with the current supply standing at 7.5 billion. VSG’s economic model will continue to evolve based on market dynamics.
Key features of the VSG token
Following the bridge from Ethereum to VSC, some of the key features of VSG are as follows:
Hybrid consensus mechanism — VSG will leverage the dual consensus algorithm on VSC, which is designed for scalability, cost-efficiency and security.
Hyperdeflationary mechanism — One of the distinct features of VSG post-bridge is its use of a hyperdeflationary model. Based on this model, every $1 generated from each transaction on VSC will be used to buy and burn VSG tokens, which will reduce the token's supply over time, translating to higher value in the future.
Primary token — VSG will serve as the primary token for all transactions on VSC.
Enhanced security — Following the transition to VSC, the VSG token will be subject to advanced security measures, such as third-party security audits and AI-powered fraud detection on transactions.
Vector Smart Gas's uses
The VSG token is designed to facilitate the following core real-world use cases on the platform and in various financial setups.
On-chain transactions
VSG fuels all on-chain activities on VSC. You can use VSG for simple token transfers or complex smart contracts. Because VSC applies fixed, predictable gas fees (typically around $4 per transaction), developers and users enjoy transparent and cost-effective operations. Furthermore, due to VSC’s high throughput, VSG can be used for DApp transactions, such as minting NFTs and real-world asset (RWA) tokenization. VSG can also be used for staking to help secure the VSC blockchain.
E-commerce and retail payments
With predictable low fees, VSG is well-positioned to power both cross-border and local e-commerce checkout systems. By replacing volatile and expensive credit card systems and fiat conversions, merchants can reduce costs while providing consumers with seamless, blockchain-backed payments. VSC’s advanced cryptographic features also help ensure secure and transparent payments.
Financial inclusion in emerging markets
VSG is crucial in actualizing VSC’s mission of driving financial inclusion, especially in places with limited banking infrastructure. VSG can be used to facilitate low-barrier payment gateways via digital wallets, and to enable access to financial services by unbanked individuals.
Cross-border payments
Compared to TradFi options such as SWIFT, a blockchain-native token like VSG dramatically improves the speed, cost and transparency of cross-border transfers. Settlement becomes nearly instantaneous peer-to-peer, eliminating intermediaries and slashing fees, while VSC’s blockchain immutability boosts transparency and resistance to fraud. Such abilities mean faster, cheaper remittances and better access to global markets.
VSG on Vector Smart Chain vs. VSG on Ethereum
The VSG token was initially launched on the Ethereum blockchain as an ERC-20 token, leveraging the platform's tested infrastructure to provide secure transactions. As an ERC-20 token, VSG was easily integrated with various DeFi platforms, allowing its holders to participate in decentralized lending and borrowing.
Overall, when on Ethereum, VSG achieved certain milestones, such as wider acceptance through traction from the Ethereum community and increased engagement, especially from developers, which translated to the token's growth and adoption.
However, VSG faced various limitations that have plagued the Ethereum network over the years. These challenges include high network fees, congestion (especially during peak times) and scalability issues. Ultimately, the team needed a more scalable and cost-effective solution to address these limitations and enhance user experience.
As such, it became essential that the token transition to its own Layer 1 blockchain, Vector Smart Chain. The main goal of the transition was to optimize the token's scalability and utility by providing a dedicated infrastructure to cater to its users' needs.
On VSC, some key features and strengths of the VSG token are as follows:
Enhanced utility as the primary utility token driving the VSC ecosystem. The interoperability of the VSC chain also allows VSG to be integrated into many DApps and DeFi platforms.
The hyperdeflationary mechanism via the buy-and-burn program gradually reduces the number of VSG tokens, which could enhance their value, incentivizing people to hold the token.
Minimized transaction costs, making transactions more affordable for users and fostering broader adoption.
Higher scalability, since the VSC’s blockchain has advanced scalability solutions that allow it to handle a high volume of transactions.
A proposed democratic and transparent DAO governance model that encourages its holders to participate in various decision-making processes regarding the platform.
Vector Smart Gas (VSG) price prediction
As of Jun 26, 2025, VSG’s price was $0.001336, a 84.7% drop from its all-time high (ATH) of $0.0087 on Dec 16, 2024 and a 55531.9% increase from its all-time low of $0.0000024, recorded on Mar 5, 2025.
Price prediction experts are bullish on the future price of VSG. For example, according to experts at CoinCodex, technical analysis shows that VSG’s value could hit $0.002396 in 2027 and increase to $0.004936 by 2030.
While this price prediction is bullish, it isn’t investment advice and doesn’t guarantee the future price of VSG. We highly recommend that you do your own research before investing in the Vector Smart Chain token (VSG) or any other digital currencies in the cryptocurrency market.
Closing thoughts
Vector Smart Chain’s blockchain innovation prioritizes real-world utility, cost efficiency and cross-chain compatibility. By combining a developer-friendly infrastructure with a dual-layer consensus mechanism and predictable transaction fees, VSC aims to resolve many pain points that have limited broader enterprise and consumer adoption of blockchain technology.
At the center of this ecosystem is the Vector Smart Gas token (VSG), which has made a strategic leap from Ethereum to its native chain in order to unlock lower fees, better scalability and a hyperdeflationary model.
VSC’s diverse real-world applications and enterprise solutions — from providing robust tools to power DApps and facilitating cross-border payments, to enabling e-commerce and financial inclusion — highlight its potential to become a truly beneficial blockchain platform for facilitating DeFi, enterprise solutions and RWA integration.
While future price predictions may be optimistic, the real promise of VSG lies in its use case viability and the broader adoption of Vector Smart Chain's robust platform in the crypto market.
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