VeChain price VET $0.02292
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36th / 9.1K
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85th / 9.1K
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To find out even more about this project, check out our deep dive of VeChain.
What Is VeChain (VET)?
VeChain (VET) is a versatile enterprise-grade L1 smart contract platform.
VeChain began in 2015 as a private consoritium chain, working with a host of enterprises to explore applications of blockchain. VeChain would begin their transition to public blockchain in 2017 with the ERC-20 token VEN, before launching a mainnet of their own in 2018 using the ticker VET.
VeChain aims to use distributed governance and Internet of Things (IoT) technologies to create an ecosystem which solves major data hurdles for multiple global industries from medical to energy, food & beverage to sustainability and SDG goals. By leveraging the power of trustless data, VeChain is building the digital backbone that will underpin the fourth industrial revolution, which demands real-time and trustless data sharing between many participants.
The platform uses two tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. VET generates VTHO and acts as the store of value and value transfer medium. VTHO is used to pay for GAS costs, separating the need to expend VET when writing data. This has the additional benefit of ensuring costs of using the network can be kept stable by tweaking certain variables such as the amount of VTHO required to service a transaction, or by increasing the VTHO geneation rate. Such actions first require all-stakeholder community votes.
VeChain has been able to demonstrate massively boosted efficiency, traceability and transparency across data trails, supply chains and within novel kinds of ecosystems, such as those in San Marino targeting UN SDGs, among others.
Who Are the Founders of VeChain (VET)?
VeChain is the product of creator and co-founder Sunny Lu, an IT executive who was formerly CIO of Louis Vuitton China.
Lu has since become a well-known name within the cryptocurrency industry. He has drawn attention to the ability of blockchain technology to solve transparency in particular, arguing that it can create “trust-free” enterprise/business structures that do not suffer from information corruption thanks to close working collaborations with key auditing/certification consultants such as PriceWaterhouseCoopers and DNV who verify data quality and certify industrial processes.
Fellow co-founder Jay Zhang, who directs VeChain's global corporate structure, governance, and financial management, previously worked for both Deloitte and PriceWaterhouseCoopers in the finance and risk management sphere.
Having originally begun life in 2015, VeChain is one of the oldest dedicated smart contract platforms on the market, with reflected prestige among enterprise clients.
What Makes VeChain (VET) Unique?
VeChain exists to disrupt traditional business models, and is best known for its work in supply chain, an industry that has changed little over the decades. Its work in providing a decentralised trust layer for multi-party ecosystems has already seen major sucesses with high profile clientele and government bodies.
Using transparent technology with no single point of weakness or control allows for greater security, efficiency and ease of tracking for all kinds of data, while reducing costs through trustless automation via smart contracts. Carbon, supply chain, international logistics, incentivised ecosystems, automobile passports and more all greatly benefit from the digitisation of trust and colaboration it enables.
VeChain’s platform accordingly has very wide appeal to many different clients of clients and industries.
VeChain’s official literature notes that its unique proposition lies in its dual-token setup alongside transformative protocols such as 'fee delegation' and it's one-stop 'ToolChain' platform that means crypto-wary companies can pay in fiat for VeChain's Blockchain-as-a-service, while smart contracts handle gas payment costs, ensuring frictionless use of the network, even in strict jurisdictions.
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The VeChain ecosystem has its own optimized blockchain called Thor. VeChainThor is a business platform with support for smart contracts and data auditing. It is built on an altered version of the Ethereum codebase where each transaction can perform multiple tasks. Cryptocurrency is not required to complete transactions. In addition, it’s a public blockchain that allows business users to implement the technology on a global scale. VeChainThor is a sustainable and scalable business blockchain ecosystem that ensures companies with a framework to make their dApps according to requirements. Its main tool is VeChain ToolChain which is for software development.
VeChain’s blockchain was designed to simplify supply chain management processes by making inventory tracking more transparent. The platform itself is based on distributed ledger technology to streamline operations and process a flow of information for complex supply chains.
To track transactions and regulate workflows, VeChainThor chooses a proof-of-authority (PoA) consensus mechanism that relies on masternodes and promotes openness, transparency and accountability. Some of the advantages are fast processing of vast amounts of transactions. The disadvantage is that a central authority is a key element of this approach, performing verification and authorization of users who take part in transaction processing.
According to the VeChain team, their goal is to improve digital collaboration by offering tools for stable and efficient data transfer between enterprises, supply-chain management, mitigation of problems, and facilitating the entire process. VeChain uses distributed ledger technology to streamline operations and handle information flows.
The ecosystem is fueled by two native cryptocurrencies, VET and VTHO. VET is a payment in VeChain's system. The token is tradeable and gives its holders a right to vote for changes in the protocol. VET is involved in the creation of VTHO. The main role of VTHO is to finance transactions on the network. The two-token design is intended to isolate the price volatility of VET from the cost of computations on the network, allowing VeChain to charge consistent and stable fees. Consequently, one token finances projects, and the other supports the blockchain.
How Does VeChain Work?
VeChain IDs are a crucial component of the VeChain blockchain. A unique identifier is assigned to a product. Sensors are used to track each step of a supply-chain. As a result, a safe environment is formed for all parties, and movement data is documented and verified.
The general idea of VeChain is to grant a way to determine authenticity and quality of real products, as well as to prevent fraud. The platform seeks to provide stakeholders with comprehensive information about products and business processes, thereby increasing market transparency and making international trade more fair and efficient. The list of VeChain clients already includes large corporations like BMW, LVMH, and Walmart.
VeChain software allows enterprise developers to create and run dApps. Therefore, due to VeChain’s blockchain, companies can apply dApps and offer a higher level of services and goods. The project also uses proprietary solutions and developments, including ToolChain, My StoryTool, the VeChainThor blockchain, and Internet of Things (IoT) technology to facilitate processes.
How Many VeChain (VET) Coins Are There In Circulation?
VeChain has two in-house tokens: VeChain (VET) and VeThor (VTHO). Described as a unique offering for such a platform, the dual-token system is designed to avoid fee fluctuations and network congestion.
VET is the token used for transactions and other activities, while VTHO provides fee payments and thus functions as a “gas token,” similar to how gas functions for Ethereum (ETH) transactions.
VET holders automatically generate a small amount of passive income in VTHO, while 70% of the VTHO used in a VET payment is destroyed.
VTHO is generated based on VET holdings, while VET itself has a maximum fixed supply of 86,712,634,466 tokens.
At the time of writing (07/12/2021) - there are 66,760,741,299 tokens in circulation according to VeChainStats
How Is the VeChain (VET) Network Secured?
VeChain (VET) is a Proof of Authority (PoA) token, requiring relatively low computing power to achieve network security versus a protocol such as Bitcoin. A recent CTI report showed that VeChain's annual carbon footprint is incredibly small at just 2.4% of the emissions of mining a single Bitcoin, thus making PoA an incredibly efficient consensus mechanism for securing the network.
Proof-of-authority, is a process wherein authority masternode operators are selected by an independent Steering Committee, thus giving them 'authority' to run a masternode. This model is particularly attractive for enterprises who want assurances about the integrity and quality of validators running the network, and assurances bad actors can be ejected if needed.
Where Can You Buy VeChain (VET)?
VET is a freely-tradable token available on major exchanges, while markets also exist for VTHO.
VET had major markets on Binance and Huobi Global among other platforms, with pairs for cryptocurrencies, stablecoins and fiat currencies.
If you’re new to cryptocurrency and want to know how to buy Bitcoin (BTC) or any other token, you can read more here.
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