Demystifying the link between VDAs and blockchains

economictimes.indiatimes.com:

While there is increasing acceptance around the untenable value of VDAs, the topic is still riddled with jargon and is somewhat inaccessible to the larger public. There also still exist critics who often deem VDAs as ponzi schemes with no underlying value. This article seeks to break down the true value of VDAs in simple terms.How are VDAs and Blockchains LinkedIn order to understand the value of VDAs, it is first important to understand what a blockchain is. One can think of public blockchains as digital ledgers, similar to online spreadsheets, shared across and maintained by a network of participants who view and validate the stored data. Such blockchains enable participants to transact with one another on the network without the involvement of a central server and all these transactions are recorded on the database in a distributed manner by multiple network computers. These computers are called nodes. They initiate transactions on the request of network participants and verify transactions initiated by other nodes.

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VDAs play a fundamental role in the functioning of public blockchains. They create incentives and disincentives for nodes and other network participants to engage with the blockchain, productively. For example, on the Polygon network, MATIC is used to pay nodes for services like sending transactions or running smart contracts. Without MATIC, the whole system wouldn't work as nodes