There are thousands of cryptocurrencies available today, with some aiming to solve problems with more advanced blockchain technologies like Ethereum and Bitcoin. In this article, we will delve into Vechain.
What is VeChain (VET Coin)
This is a blockchain platform that improves business processes and supply chain management. VeChain’s goal is to streamline and make these processes as smooth as possible. It simplifies information flow for complex supply chains through the use of DLT (distributed ledger technology). The VET coin is one of the two different tokens the VeChain platform contains — the other is VeChainThor Energy (VTHO). VET coin’s main role is to transfer value across the platform’s network. This means that you will need it to trade on the VeChain platform.
What is VeThor? (VTHO Token)
VeThor is another token in the +VeChain platform. While VET coin is the native coin for this ecosystem, VTHO powers transactions on the platform. The VTHO token is based on proof of authority and created using the VIP-180 standard. Remember that VIP-180 is part of the ERC20, a module that presents specific APIs on the VeChain platform. These APIs make it possible for third parties to spend money on the platform.
The proof-of-authority model is fundamental on this platform because it ensures faster transactions. This is possible because the model is not based on the proof-of-stake or proof-of-work model. The proof-of-authority model verifies the trades of those identified as trusted nodes. On the other hand, proof-of-work models are based on the work done by miners to solve puzzles in the cryptographic world. Bitcoin mainly applies this model. Lastly, the proof-of-stake model (used on the Ethereum blockchain) allows other individuals to stake their crypto tokens.
VTHO vs. VET
VET is the primary method that value is transferred on the VeChainThor blockchain. Keep in mind that VTHO is separate from VET’s market value. This is vital because it helps clear the speculation that cryptocurrencies are influential. It also helps separate VTHO from VET, making them two different entities.
While VET is the primary way of transferring value on the VeChain platform, VTHO is mainly used in smart contract transactions. The primary purpose of VTHO is to offer a reliable way of scaling enterprise functions on a blockchain. This makes it possible to multitask. According to VeChain, its blockchain platform solves a wide range of issues with Ethereum, and it is the best option for managing large-scale enterprise tasks and executing smart contracts.
This is a supply chain platform powered by blockchain. The main applications of VeChainThor are in the Internet of Things and supply chain management. Thor is the blockchain supporting the VeChain platform, making VeChainThor the blockchain level of the entire ecosystem. Apart from this blockchain level, there are other layers to the ecosystem. Proof-of-authority (PoA) is a unique consensus system that VeChainThor uses. Masternodes authorized by the system secures the chain. Masternodes are vital on this platform because they maintain the platform and produce blocks. Thanks to the VeChain Foundation, any user can run an economic node for occasional rewards and voting rights.