To find out even more about this project, check out our deep dive of VeChain.
What Is VeChain (VET)?
VeChainThor (VET) is a versatile enterprise-grade L1 smart contract platform whose origins began in 2015. VeChain is known as a pioneer of real-world enterprise applications, and built a distributed platform powered by Internet of Things (IoT) technologies, NFC chips and blockchain to help various industries solve data-related challenges.
VeChain solves major blockchain adoption hurdles. The platform uses an intelligent two token model, VET and VTHO, separating the protocol's Store of Value and gas fee payment mechanisms, ensuring costs can be kept low and stable. Fee delegation allows smart contracts to pay gas fees on behalf of business users, and an advanced transaction model allows data to be packaged more efficiently while ensuring finality of data.
VeChain is focused on delivering a wave of incentive-based sustainability dApps through its new platform, VeBetterDAO, working closely with Boston Consulting Group to achieve adoption across enterprise and individual users, and helping onboard the next billion users to Web3 over the coming decade.
From supply chains to sustainability, VeChain has continuously demonstrated its leading role as a driver of blockchain in business, and is dedicated to its role as a pioneer of driving real world adoption of blockchain technology.
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.
VeChain Ecosystem
The VeChain ecosystem has its own optimized blockchain called VeChainThor. 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. 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.
VeChain’s blockchain was designed to simplify business management processes by making information sharing more transparent. The platform itself is based on distributed ledger technology to streamline operations and process a flow of information for complex data 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, cost efficacy, and verified node holders, helping to ensure greater trust and network security.
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.
VeChain's Sustainability dApp Platform - VeBetterDAO
Recently, VeChain launched VeBetterDAO - a sustainability dApp ecosystem powered by community stakeholders. The platform uses an X-2-Earn model, wherein users are rewarded for their engagement with sustainable activities.
The Foundation works closely with Boston Consulting Group in pursuit of this mission, who collaborated with VeChain to produce the Web3 for Better whitepaper, published in March 2023. VeChain's goal is to onboard a billion users to Web3 by 2030 through this platform, with a dual strategy of targeting individual and enterprise adoption.
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.