The other day, Peter Zhou, Chief Scientist at VeChain Foundation, penned a brilliant article on the upcoming VeChain Improvement Proposal (VIP)-201, which builds upon fee delegation (VIP-191), and introduces the concept of Fee Delegation as a Service (DaaS). While Peter’s article explains the technical aspects of the proposal, this article attempts to break it down into non technical examples to demonstrate its possibilities.
Fee delegation itself is easy enough to understand. We see examples of this every day in our real life. Think of a product like Office 365 . If you purchase a personal license for home use, you’re responsible for paying the license fee when it’s due. However, if you’re working for a company that has an enterprise deal for Office 365, you as an employee never have to worry about when the license payment is due and how much it costs. You just use the software.
This is fee delegation in a nutshell. We accept fee delegation as part of our daily lives, but when it comes to Blockchains, it was mostly unheard of. However, this is exactly what #VeChain offers with VIP-191, which is a significant step towards enterprise adoption.
Coming back to the example above, now imagine if the company is using a variety of Microsoft products, not just Office. That’s a lot of different enterprise contracts that they need to maintain with Microsoft, with different pricing models, contract durations, and so on. This adds a huge deal of complexity, not just for the company who wants to use the Microsoft products, but also to Microsoft themselves.
This is where the Microsoft Authorized Resellers come in.
These are companies who procure enterprise licenses for various products from Microsoft in bulk, and configure them in ways that suit the needs of the end customer. So the end customer only receives one invoice from the reseller for all the Microsoft products they use. This greatly reduces the adoption barrier for Microsoft enterprise products.
The DaaS module and VIP-201 aims to replicate exactly this for VeChain adoption.
Let’s look at a few examples to see what this actually means in practice: