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I am always interested in DeFi coins that have a clear purpose and in the time the potential to achieve significant gains. Having investigated VeChain it is quite clear what its purpose is, as to whether it will provided any worthwhile return on investment notbody is really sure but it makes for an interesting read.
VeChain provides blockchain solutions for businesses around the globe.
With plenty of existing industry blockchain applications from supply chain management to anti-counterfeiting and carbon credits, their systems have been proven in the real world. VET is the coin that underpins VeChain, where VTHO is the gas token that’s used for transactions on the VeChainThor blockchain (like Ethereum’s gas).
VeChain is a company established in 2015 that provides blockchain-based solutions for businesses by leveraging the power of its VeChainThor blockchain. The company has deep ties to the Chinese industry and government and seeks to strengthen these bonds further.
Introduced in 2015 as part of Shanghai-based Blockchain-as-a-Service (BaaS) company, BitSE, VeChain is a distributed business ecosystem leveraging blockchain technology. It’s specifically designed to be used by both small and big businesses. VeChain’s public blockchain is called VeChainThor.
The Vechain Foundation is founded in Singapore and oversees the development, governance, and advancement of the VeChain ecosystem.
VeChain is considered a mature company by some, with many real-world business applications already existing on the VeChainThor blockchain. As the VeChain Whitepaper 2.0 states, “these solutions are not just theoretical, they are solutions tested and discussed with over 700 enterprises and implemented for over 100+ fortune level enterprises.”
VeChain’s parent body has been given a 5-star rated Blockchain Service Certificate from TÜV Saarland, a European certification body.
The VeChainThor blockchain works similarly to other business-use blockchain platforms. Businesses use VeChain's fully functional Blockchain-as-a-Service (BaaS) product called ToolChain to build their blockchain-based solutions. VeChainThor also supports smart contracts.
Single transactions on the VeChainThor blockchain can carry out multiple tasks. In addition, VeChain app users don’t need to hold any crypto to perform transactions. This can be done instead by the app owners, which can make the user experience more convenient for the average user.
The VeChainThor blockchain uses Proof of Authority (PoA) consensus, which delegates power to certain nodes in the VeChainThor blockchain for confirming transactions. This means that it only passes transactional blocks through Authority Masternodes that need to hold at least 25,000,000 VET.
VeChain has two separate tokens: VET and VTHO.
VET (VeChain Token) is used for financial transactions on the VeChainThor blockchain and market speculation.
VTHO (VeThor Token) is the “energy token” that’s used to conduct transactions on VeChainThor. VET owners can generate VTHO for use on the VeChainThor blockchain.
VeChain is notable for its deep ties to China – a critical blockchain market that is difficult to enter for non-Chinese companies. The company is headquartered in Singapore, while it has an office in Shanghai, investment from Chinese VC firm FutureCap, and a Chinese CEO, Sunny Lu. The project also has partnerships with several Chinese government bodies, including the China Animal Health And Food Safety Alliance.
The organization also has many business partners with solutions that already exist in the real world, on the VeChainThor blockchain. Partners that already have VeChain solutions include PriceWaterhouseCoopers (PwC), Walmart China, Renault, and Shanghai Waigaoqiao Direct Imported Goods.
Let’s go through some of the most significant use cases of VeChain’s technology. This isn’t an extensive list, however. You can check out the VechainWorld library of Dapps for more.
Blockchain-based solutions could lead to a more transparent food economy around the world.
VeChain-enabled Internet of Things (IoT) devices can be deployed across the supply chain, including on products, vehicles, and warehouses. Then, environmental and location-based data from these devices can be uploaded, verified, and stored in a tamper-proof, decentralized manner on the VeChainThor blockchain. Solutions like this are already in effect for several companies, including Shenzhen Yuhongtai Foods.
Counterfeiting in the luxury goods market is a serious problem. By attaching an encrypted chip and then using the chip to log and trace logistics, warehousing, maintenance, and resale, owners can be assured of authenticity. This has been used for luxury wine tracing for Shanghai Waigaoqiao Direct Imported Goods, and in testing for Renault luxury vehicle components.
Healthcare records systems are notoriously archaic. Instead of using inefficient and insecure record systems for lab results, this valuable data can be stored on the blockchain, with only patients and other authorized parties having access. A VeChain-based E-HCert App will be rolled out to patients of both the Mediterranean Hospital of Cyprus and Aretaeio Hospital in 2021.
By driving carbon reduction by tracking carbon-emitting activities, this solution allows consumers to be involved in a carbon-saving scheme.
When smart devices, such as cars or appliances show that a consumer is generating less carbon, they can then receive credits to be used on energy services. BYD, a Chinese electric car brand, already uses a Vechain solution.
You can store VET and VTHO, as well as several other crypto assets in the VeChainThor official light wallet on iOS or Android. The official desktop wallet is VeChain Sync, which can also be used with the Ledger for cold wallet storage.
Third-party wallets that can store VET and VTHO include Trust Wallet, Cobo Wallet, Atomic Wallet, Arkane Wallet, MySafeWallet, Guarda Wallet, Ellipal, and Exodus.
VeChain is ambitious and already has a strong presence in the Chinese market.
With proven projects from large name enterprises already running on the VeChainThor blockchain, the company has shown that it can help businesses create useful blockchain applications.
VeChain (VET) was one of the first blockchains built exclusively to cater to the needs of enterprise-level clientele. The developers behind the project seek to improve supply chain and product lifecycle management through the use of distributed ledger technology (DLT). Importantly, the platform offers users a variety of new functionalities that make it ideal for businesses seeking to enhance supply chain protocols and business processes.
Today, the logistics sector suffers from an asymmetric information problem. While the systems in place do collect a large amount of data, this data is not communicated in an optimal manner. In most instances, severe compartmentalization leaves the entire supply chain to rely on centralized data sources. This lack of unity results in a lack of transparency and delayed data transmission.
VeChain provides businesses the ability to track an enormous amount of data. These indicators can include items such as quality, authenticity, storage temperature, and transportation status. Impressively, VeChain provides all of these features via a trust-free and distributed business ecosystem. In this way, VeChain reduces overhead and improves accountability.
VeChain differs from other projects in the sector in a few key ways. Primarily, the developers behind this project had no desire to create a fully decentralized platform. Instead, their goal was to integrate the best features from both the DeFi (decentralized finance) and CeFi (centralized finance) sectors. This strategy creates a balanced platform that provides users with transparent information flow, efficient collaboration, and high-speed value transfers.
VeChain utilizes a variety of technologies to accomplish its goal to streamline the supply chain sector. For example, VeChain uses various types of Radio Frequency Identification (RFID) tags and sensors to monitor critical data during shipment. This information is broadcast in real-time across the blockchain.
This strategy enables any stakeholders or market participants to monitor the item to verify its condition and authenticity. Paramountly, this approach is perfect for large complex supply chains. VeChain can monitor these gigantic networks and keep businesses up to date on developments as they occur.
VeChain is a pioneer in the integration of IoT and DLT technologies. Keenly, VeChain was built from the ground up with IoT integration in mind. The Internet-of-things refers to the network of billions of smart devices currently in use globally. All of these devices are smart because they possess some sort of sensor and ability to communicate data online. Today, these devices encompass an unbelievable array of stuff, from TVs to doorbells, to the phone you are holding in your hand right now.
The integration of IoT and blockchain technology makes perfect sense. Blockchain tech provides an affordable way to monitor such a vast amount of data in near real-time via consensus. Consequently, VeChain isn’t the only project exploring the merger of both techs.
VeChain went from the drawing board and into reality in 2015 with the goal to disrupt the supply chain industry by making data actionable and transparent. The project’s creator, Sunny Lu, was best known for his executive work with Louis Vuitton China before this venture. You have to imagine that dealing with all of the supply chain issues facing clothing manufacturers face helped inspire him to develop this unique system.
VeChain’s VET began on the Ethereum blockchain. This approach is a common strategy in the market because it allows developers to showcase their concept and gather funds to develop their own blockchain. Eventually, that’s exactly what VeChain did. Today, VET operates within the native VeChain ecosystem. In this way, developers can provide features geared directly to business clientele.
VeChain did borrow one thing from Ethereum, its dual token strategy. In this style of blockchain ecosystem, one token serves as the public investment and/or digital cash and the other is for smart contract execution and programming. Examples of this style of backend token are Ethereum’s ether and NEO’s GAS.
There are two main advantages to this strategy. The first benefit is that this system provides effective governance. Blockchains need to have governance models that include the community or they risk hard forks from unhappy community members. The second reason to use a dual token strategy is that it provides your blockchain with a predictable economic model.
VET is the cryptocurrency that you would invest in on an exchange. It serves as an increment of value within the VeChain blockchain. This token can transfer value across the blockchain and trigger smart contracts. It is also how users pay for transactions on Dapps that function on the VeChain blockchain.
Currently, there are 55,454,734,800 VET in circulation. VeChain’s system is set up to issue a total amount of 86,712,634,466 VET. VET ranks in the top 30 cryptocurrencies globally based on market capitalization
Market Date - from CoinMarketCap
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The second token used in the VeChain system is VeChainThor Energy. This token functions as gas to power smart contract transactions. These tokens are not publicly available. Only developers use these tokens to cover their contract execution costs.
Critically, most blockchains require developers to make a payment to place contracts on the blockchain. This strategy ensures that only public-ready coding makes it onto the blockchain and reduces spam posts
In order to make good on all of its promises, VeChain must provide business with timely and secure consensus. To that end, the platform introduces a proprietary consensus mechanism known as Proof-of-Authority (PoA). This protocol provides an efficient means to maintain system continuity.
The PoA consensus mechanism was built to improve upon the shortcomings found in Proof of Work (PoW), Proof of Stake (PoS), and Designated Proof of Stake (DPoS) mechanisms. Critically, PoA requires less energy consumption. As opposed to Bitcoin, which requires nodes to communicate and validate transactions, there is no requirement for communication between nodes to reach consensus on the VeChain blockchain.
VeChain relies on a group of 101 Masternodes to achieve consensus. This strategy improves transaction times significantly. Surprisingly, there are no anonymous nodes within this network. You must complete KYC and AML ID verification before you can validate blocks in this system,. The developers believe this approach is essential to their balanced market strategy.
Interestingly, VeChain also utilizes economic masternodes. These nodes can vote on issues regarding the VeChain ecosystem. For every 10,000 VET an economic masternode holds, they get one vote.
VeChain users can also stake their VET to earn some passive income. Staking requires you to hold your VET in a network wallet that remains online for a preset time period. The longer you stake your VET, the more you earn.
Keeping in line with VeChain’s goal to provide a balance between centralization and decentralization, votes are disbursed based on the amount of VET a person holds. Individuals that hold over one million VET are responsible for 20% of the vote. Those users that verified their identity and hold one million VET get 30% of the vote. The rest is split up between the community.
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You can store VeChain in a variety of different ways. If you want to trade your VET, or just seek a quick return, then you will want to store your crypto on the VeChainThor mobile wallet. This easy-to-navigate wallet provides you with all the features you need. Best of all, it’s available as a free download for Android and Apple devices.
If you seek to make a major investment in VET or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support VeChain (VET).
More than most projects, VeChain demonstrates the maturing of the blockchain sector. Today, blockchain is more than just cryptocurrencies. Platforms such as VeChain push the boundaries of blockchain efficiency and provide the world with a more efficient alternative to the status quo.
