VeChain is a blockchain-based platform that focuses on supply chain traceability and logistic needs. The VeChainThor blockchain runs the VeChain token (VET) and the VeThor token (VTHO). VET is used to transfer value across networks, while VTHO supports transactions on the blockchain platform.
VeChain’s supply chain focus makes it an ideal investment strategy, particularly if you’re in shipping, retail, manufacturing, and other related industries. Here’s everything you need to know about the VeChain token and whether it’s worth adding it to your cryptocurrency portfolio.
What is VeChain (VET)?
VeChain’s network aims to streamline the flow of data in supply chains. It achieves this by eliminating compartmentalization of information in data silos and instead provides a complete view of organizational procedures. Its blockchain platform has self-executing smart contracts and supports the creation of decentralized applications (DApps).
Essentially, VeChain simplifies information chain management, improving the ability of businesses to track large sets of data. Companies can easily manage the quality, authenticity, transport, and other items in their supply chain process through its platform. VeChain manages to do this through a trust-free business ecosystem.
The History of VeChain
VeChain was founded in 2015 by Sunny Lu, a former Chief Information Officer for Louis Vuitton China. The platform was officially launched in 2016 after a year of development and grew as a subsidiary of Bitse, one of China’s leading blockchain companies.
VET operated on the Ethereum blockchain during its early days but developed a better decentralized platform and moved to a consortium blockchain. The company eventually established the VeChain Foundation, beginning their migration journey to a Proof of Authority (PoA)-based public blockchain.
With VET currently operating in VeChain’s ecosystem, their developers can offer blockchain-as-a-service (BAAS) products to clientele in the logistics and data management industries. This way, it’s enabling businesses, government, and the blockchain community to effortlessly move their operations to the blockchain as is in their mission statement.
How Does VeChain Work?
The VeChain platform is unique from other blockchains since it integrates the best features from centralized finance (CeFi) and decentralized finance (DeFi) sectors. Developers use this philosophy to create a balanced platform that offers efficiency and transparency in information flow.
VeChain tracks items during shipment using smart chips technology or Radio Frequency Identification (RFID) tags and sensors to streamline the supply chain sector. The chips give each product a distinct identity allowing authorized stakeholders to access information in real-time. It also helps customers to monitor and verify the condition and authenticity of their products while in transit.
VeChain’s portal also offers authorized stakeholders access to all essential information related to a product, such as its supply, storage, and transportation. The portal is perfect for large supply chains and can help monitor all its operational details. The smart chips make it easy to obtain information like the quality, validity, and mode of transportation of a product from the factory to the end-user.
VeChain’s Key Features
VeChain has several key features that set it apart as a blockchain and cryptocurrency. The VeChainThor is an open-source blockchain that makes it ideal for hosting DApps and smart contracts. It can also support new currencies that can follow the VIP180 standard, specially designed for VeChain.
VeChain features an integrated Internet-of-Things (IoT) and distributed ledger technology (DLT) in its system, allowing corporations to monitor large amounts of data in real-time. Another unique VeChain feature is the native fee delegation, which forms part of its blockchain code. With this feature, it’s not mandatory for app users to hold VET or VTHO.
Dual Token Strategy
VeChain also has a dual token strategy and runs the VET and VTHO tokens, as mentioned above. This strategy helps provide effective governance that involves the community. This governance model on the blockchain platform helps to keep everyone happy.
A dual token strategy also provides a predictable economic model. VET serves as digital cash or a public investment tool, whereas VTHO programs and executes smart contracts.
VeChain Token (VET)
The VeChain token (VET) is part of the VeChainThor blockchain and was developed to meet enterprise-level clients’ needs. Unlike Bitcoin and Ethereum, VET isn’t a coin but a value-creating token used for transactions and securing the blockchain network. VET can transfer value across the blockchain and initiate smart contracts.
Users can use this token to transact on DApps supported on the VeChain blockchain. There is 55,454,734,800 VET currently in circulation, with a total of 86,712,634,466 VET set to be issued by VeChain’s system.
VeThor Token (VTHO)
For every VET, you get VTHO, which is a dividend-like coin used to strengthen smart contract plans. Unlike VET, these tokens aren’t available to the public, and only developers use them to cover their costs while executing contracts.
Developers must make payments when placing contracts on the blockchain. This ensures that there are very few spam posts and only public-ready coding is available on the blockchain. This is a mandatory requirement on many blockchains.
Investing and Mining VeChain
VeChain is a PoA-based blockchain where the most prominent participants in the network act as validators. This means that, unlike other cryptocurrencies, you cannot mine VeChain tokens. Only a handful of computers can validate and operate the VET network, using very little energy compared to proof-of-work networks.
There are various exchanges and wallets available if you want to invest in VeChain. It’s widely supported and easy to buy through most cryptocurrency exchanges. Transaction costs range between 25-cents to $7, so you’ll need enough currency in your VeChain wallet.
It’s also possible to store VeChain in a variety of ways. You can use the VeChain wallet if you want to trade your VET. A hardware wallet allows you to hold your crypto for an extended period and protects you from online threats that would otherwise access your holdings.
VeChain – Is it Worth Investing?
The VeChain blockchain offers more than cryptocurrencies. It also provides a wide range of products and services suitable for managing businesses, thus providing an efficient alternative. If you find that the products VeChain offers are helpful, then investing in VET wouldn’t be a bad idea.
Moreover, if your business stands to benefit from BAAS, then investing in VET will allow you to accumulate VTHO daily for your business use. Remember that crypto investments are speculative. Therefore, doing your research and seeking expert opinions before investing is very important.