Quick Facts

Approximate Market Cap$5,087,309,239
Year Established2015 
FounderSunny Lu
Symbol/AbbreviationVET
UtilityUtility Token

VeChain differentiates itself from other efforts in the blockchain business ecosystem. The developers of this project had no ambition to establish a truly decentralized network. Instead, they aimed to combine the main aspects of the DeFi and CeFi sectors. This results in a balanced platform that offers users clear information flow, efficient cooperation, and high-speed value transfers.

The project’s creators hope to enhance supply chain and product lifecycle management by utilizing distributed ledger technology (DLT).

What is VeChain – Definition

VeChain is a cryptocurrency network which specializes in supply chain and logistic operations. The open blockchain that runs VeChain is called the VeChainThor Blockchain. It’s in charge of the VeChain token (VET) as well as the VeThor token (VTHO).

The VeChain token is used to move money throughout the network. The VeThor coin serves as the energy source for smart contract transactions.

Currencies on this blockchain adhere to the VIP180 standard, which was designed specifically for VeChain. In this manner, the tokens are comparable to ERC-20 tokens on the Ethereum network. 

Proof of Authority (PoA) is a consensus method used by VeChain Thor. Authority Masternodes are users that verify and add transactions to the blockchain.

Miners are compensated with VTHO fees for computations performed by the network. The more complicated the computation, the more VTHO is required for a particular application.

Staking VET coins grants nodes the power to vote on network updates and rewards them with VTHO per block.

Pros and Cons

Pros

  • Trusted platform
  • Partnerships with reputable corporations
  • Apllicable to various industries

Cons

  • Not completely decentralized
  • Fast expansion
  • Possibly high withdrawal fees

The History

Sunny Lu and Jay Zhang co-founded VeChain in 2015.

VEN, the VeChain cryptocurrency, was originally issued on the Ethereum blockchain by the VeChain team. They sold 1 billion tokens and raised $20 million in a crowd sale in 2017.

When the VeChainThor blockchain was released, these tokens were replaced with VET tokens. At a 1:100 ratio, VEN tokens were exchanged for VET tokens.

VeChain formally debuted in 2016 under the leadership of a Shanghai-based team. It is presently managed by a worldwide staff of more than 100 people. Customers in the logistics and data management sectors can use their blockchain-as-a-service (BAAS) products.

How VeChain Works

VeChain allows the Blockchain community to migrate their business operations to the blockchain. It focuses on the fact that technical knowledge is not necessary.

VeChain works by assigning specific identifiers to physical products. It often uses RFID, QR Codes, or NFC. Sensors collect data at each level of the supply chain. The data is then stored and connected to the product’s identification. Because it uses blockchain technology, the collected information cannot be altered. This provides for an accurate record of the circumstances across the supply chain.

Other blockchain projects can utilize the network to launch their own coin on VeChain’s infrastructure. This platform has aided VeChain’s transition from supply chain to Dapps.

VeChain employs a unique methodology known as proof of authority. There is no need for puzzle solving. All that is necessary is an approved set of individuals known as ‘validators.’ Each validator operates software that verifies new entries to the blockchain. It allows transactions to be completed far more quickly than PoW and PoS protocols. It tries to establish a compromise between total decentralization and centralization.

Advantages & Disadvantages

Advantages

Trusted

The platform allows businesses to have a comprehensive understanding of and adequate visibility into their items at any given moment.

Quality Control

VeChain platform assists businesses in maintaining uniform product standards across the supply chain.

Strong Partnerships

VeChain has formed alliances with a variety of firms, including PwC, Microsoft, Viseo, and Renault.

Disadvantages 

Governance

The Proof of Authority concept depends on 101 nodes to validate transactions.  As a result, the system is not entirely decentralized and may encounter problems if several nodes become corrupt.

Rapid expansion

VeChain is rapidly expanding. This might pose a significant danger in the absence of adequate direction.

VeChain in the Global Crypto Market

There are now 55,454,734,800 VET in circulation. The VeChain system is designed to issue a total of 86,712,634,466 VET. Market cap, VET is one of the top 30 cryptocurrencies in the world.

Every Vet token has already been minted. This implies that when the VeChain foundation obtains more partnerships, more cash will flow to the token. This will drive its price higher owing to a limited quantity.

With so many important partners to its name and real-world use, the currency is often regarded as a smart option for investors.

FAQ

Is VeChain mineable?

VeChain cannot be mined. It is based on a PoA system in which the largest participants serve as network validators.

Does VeChain have a limited supply?

VET tokens, like many other cryptocurrencies, have a finite supply. There will never be more than 86.7 billion VET.

What problems does VeChain solve?

The blockchain promises to tackle a wide range of business-related issues. VeChain can save energy, solve distribution of food, inaccurate health records and prevent counterfeiting.