VeChain: All You Need to Know About this Platform
If you are not an enthusiast or a huge supporter of crypto, it is most likely you do not know much about VeChain or even that it exists. This is normal since there are lots of altcoins/cryptocurrencies out there, and it is hard to keep up with them all. Not to worry, let’s dive together into VeChain and its history, and also see if it’s a worthy investment.
What is VeChain (VET)?
VeChain (VET) was one of the first blockchains built exclusively to cater to the needs of enterprise-level clientele. VeChain is a blockchain platform designed to enhance supply chain management and business processes. It is a smart contract platform focused on providing supply chain management solutions for enterprises and integrating with the Internet of Things (IoT) devices to facilitate the process. Its goal is to streamline these processes and information flow for complex supply chains 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.
The VeChain platform claims to give authorized stakeholders a total view of critical information related to a product and its business processes (i.e storage, transit, supply, and authenticity) as well as increase market transparency.
History Of VeChain
VeChain was founded in 2015 by Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China. It started as a subsidiary of Bites, one of China’s largest blockchain companies, and is among the few blockchains that already have a substantial customer base among established companies. VET blockchain development started as a modified fork of Ethereum with a design focus on the Internet of Things (IoT) and supply chain management. VeChain later transitioned onto its blockchain and rebranded itself in 2018. As part of the rebrand, the VEN blockchain became the VeChainThor (VET) blockchain.
Its initial target was to disrupt the supply chain industry by making data actionable and transparent. It also plans to be a leader in dApps and initial coin offerings (ICOs) made using VeChain as well as being an Internet of Things (IoT) intermediary.
To date, VeChain has expanded its focus to multi-purpose functionality with customizable support for a range of enterprise uses. On-chain governance, cheap transaction fees, interoperability with non-blockchain technologies, and regulatory compliance are all priorities for VeChain core developers.
VeChain has inked strategic partnerships over the years with several companies to help achieve this goal. Among them is an agreement with PricewaterhouseCoopers (PwC) for VeChain's blockchain-powered solutions to be used by the accounting firm's client base to improve product verification and traceability.
VeChain has also partnered with Renault, creating, in conjunction with Microsoft and Video, a digital car maintenance book that cannot be tampered with and is the government technology partner for Gui’an, an economic development zone for the Central Chinese Government.
VeChain Blockchain Platform
The VeChainThor blockchain platform is a public blockchain intended for “mass business adoption.” VeChain Token (VET) and VeChainThor Energy (VTHO) are the two tokens on the Vechain network.
VET is the VeChain token that is used to carry value or “smart money” from smart contracts. In other words, transactions on decentralized applications occurring on VeChain’s blockchain will use VET. It is available for investing by the general public. It 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 is more than 55 billion 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.
VeChainThor Energy (VTHO) is the second token used in the VeChain system. The VTHO token stands for VeChainThor Energy and is also known as VeThor Energy. It is used to power transactions on VeChain and is equal to the cost of conducting transactions on its blockchain. This token functions as gas or energy to power smart contract transactions. These tokens are not publicly available. Only developers use these tokens to cover their contract execution costs.
How Does VeChain Work
VeChain aims to “build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed transfers”.
Traditional supply chain data for business processes and information flow are divided among multiple stakeholders. VTO says that its platform uses blockchain technology to provide necessary information linked to a product and its business processes to stakeholders and create greater market transparency. How do they do this though?
Managers assign a product’s QR code with a unique VeChain ID. This VeChain ID is stored on VeChainThor, which the operation staff collects and uploads to the blockchain. Real-time information on the product is regularly uploaded to the blockchain through smart chips and Radio Frequency Identification (RFID) tags and sensors. When the product reaches the consumer, they can scan the tags and obtain information directly from VeChainThor’s ledger.
Applications for VET
VeChain is primarily used to track, identify, and verify products from the manufacturer to the customer. Because the product is constantly monitored, problems that arise are easily communicated to the relevant stakeholder. For example, a vaccine packet was ordered by a customer. The customer noticed that the vaccine was stored outside its prescribed temperature range, and informed the manufacturer. The manufacturer can then adjust the temperature of the vaccine in transit, or prepare a replacement for the customer.
VET can also be used to verify the authenticity of products, especially luxury goods. Counterfeit products are abundant, especially with online shopping. Customers can use the VeChain ID to check if the products they received are counterfeit or not.
Where to Buy VeChain (VET)
VeChain (VET) is available for purchase on the following exchanges:
Uphold – This is one of the top exchanges for the United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Binance – Best for Australia, Canada, Singapore, the UK, and most of the world. USA residents are prohibited from buying VeChain (VET).
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
How to Store VeChain
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, 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 and the more advanced Ledger Nano X both support VeChain (VET).
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 optimally. 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.
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.
However, supply and demand are what will ultimately define the value — or rather, the price — of VET. VeChain is something to keep on your radar.
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