VeChain (VET) is a blockchain-powered supply chain platform. Begun in 2015 and launched in June 2016, VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem which solves some of the major problems with supply chain management. The platform uses two in-house tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. The idea is to boost the efficiency, traceability and transparency of supply chains while reducing costs and placing more control in the hands of individual users.
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” structures which do not suffer from corruption as part of the supply chain. 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 launched in June 2016, VeChain is one of the oldest dedicated blockchain supply chain platforms on the market. VeChain exists to disrupt traditional supply chain models, an industry which before blockchain had remained little changed over the decades. Using transparent technology with no single point of weakness or control allows for greater security, efficiency and ease of tracking products in a given supply chain, while reducing cost through trustless automation. VeChain’s model thus appeals to businesses looking to reduce supply chain friction and give a more transparent impression to clients. VeChain’s official literature notes that its unique proposition lies in its dual-token setup, among other features. In-house token fees combine with charges for various services to generate operating income for the company, while token holders can engage in activities such as staking, thus providing liquidity in return for rewards.
The VeChain platform consists of two unique tokens VeChain Token and VeChainThor ENergy(VET). 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.
VeChain (VET) is a proof-of-stake token, and VeChain itself explains that relatively low computing power is required to achieve network security and maintain user consensus. A separate feature, proof-of-authority, involves authority masternode operators maintaining the protocol in their own interest according to rules laid down by parent organization, the VeChain Foundation.
Key Points
1. Vechain is an enterprise blockchain platform and its purpose is to provide the full view of the organization by dissemination of information from data silos.
2. VeChain also aims to become prominent for ICOs (Initial Coin Offerings) and smooth conduct of transactions between IoTInternet of Things).
Dual Tokens
1. VeChain Token: It is a type of cryptocurrency that people invest in the process of exchange. It assists as an increase in the value within the dimension of the VeChain blockchain. It also helps in the user's paying process.
2. VeChain Thor Energy: It is the second token used by the VeChain blockchain network. This serves as fuel for processing smart contract transactions.
These are not publicly available. Only developers can use it to cover their execution corsets.
Where to buy: Some of the platforms are given below:
1. Binance: Best for Australia, Canada, UK, and the rest of the world.
2. Bitpanda: This the best choice for the residents of Europe they do not permit transactions for persons outside of their jurisdictions.
3. Gate.io: It is the best for USA residents.
4. Coinswitch Kuber and WazirX: Best to buy in India
Applications of VeCHain
1. The platform can be easily used to track the quality, authenticity, transparency of the transactions.
2. VeChain helps automobile owners in owning their data and making better terms & policies regarding the transactions.
Working
The VECHAINTHOR network works similarly to other blockchain networks. Corporate houses use the VEchain network to build their blockchain in similar lines. VECHAINTHOR also assists smart contracts. VechainTHOR single transactions can perform multiple tasks. Vechain app users do not hold any crypto for performing the transactions. This task is done by app owners which makes it more friendly and convenient to use. The blockchain uses PoS (proof Of Security) which helps in the delegation of power to certain nodes that confirm the transactions.
Why Vechain is important?
VeChain is a notable and debatable topic as it deep toes to china which is a critical blockchain market and it is difficult for non-Chinese companies to enter this world. It is headquartered in Singapore while it has an office in china shanghai. The project has various partnerships with various Chinese government bodies like China Animal Health & Food Safety Alliance.tHe organization has so many business partners in the real world that exist in its blockchain platform. These companies are PWC, Walmart, Renault, etc.
Wrapping Up
VeChain is notable and as we know that it has a strong presence in the Chinese market. The company has shown its potential to the Blockchain market in the World as Famous Corporates Giants are Using Vechain’s blockchain network. Various partnerships will be announced with the companies like BMW and several others.