VeChain is an ecosystem that is built on the top of the VeChain Thor (VTHOR) blockchain - this is a unique and only Dual-token system made up of the VET or VeChain, and the VeThor token, VTHO.
It is a Proof-of-Stake economy that rewards VeChain holders with VeThor tokens. This means if you hold VeChain tokens, you're entitled to VeThor tokens based on the amount of VET tokens you hold.
Vechain network was created back in 2015 and is one of the most oldest projects in the blockchain technology, it is running as an ERC-20 token in the Ethereum network called VEN.
VEN's all-time high of $9.45 happened on January 22nd of 2018. While an ERC-20 token with active smart contract project in the agriculture, winery and luxury good spaces, VeChain saw the limitations of running on a network where they had lesser control in designing development and governance than if the VEN token was run on its very own native network.
$20 million raised in ICO
In late 2017, the hottest VeChain news was that the VeChain team jumped into the ICO and raised approximately $20 million in ETH to fund the VeThor mainnet launch.
The upgrade from VeChain to VeChain Thor occurred in June 2018 with the token migration from the Ethereum network to the VeChain Thor mainnet.
What is VeChain Thor?
In the humble beginnings VeChain Thor, its idea was to have a link to products and consumers with the use of blockchain technology, this might be an impossible way of saying supply chain management, but over the past couple of years this has evolved into an internet of things token layer, tracking assets on the blockchain, coupled with a smart contract layer to track who owns these assets and the code to create decentralized applications or Dapps, to use the data.
The VeChain token (VET) is the store of value and the currency in the VeChain ecosystem. The VeThor token (VTHO) acts as the energy or power to make transactions on the VeChain network.
By holding VET, you're automatically get paid VTHO. This is called Proof-of-Stake and the more VET you hold, the more VTHO you earn. Your VET will generate VTHO at a rate of 0.000432 VTHO per day per VET.
The two token system
The reason for this two token system was to keep the value of the VET token and transaction fee stable. The VeChain Foundation (part of the governance model) can raise or lower transaction cost based on the network demand and because the token used to pay for the transaction is separated from the actual Store of Value, doing so has little effect on the balue of the main token.
Masternodes
Consensus on the VeChain Thor network is accomplished through Masternodes. These are holders who apply for the right to maintain the network and are made up of various players including Academic partners, Developers, Enterprise users, Business partners and community contributors.
There are a couple of different types of master node operators;
Authority nodes
Economic nodes.
But sticking to the basics, these nodes are aligned with the ecosystem development and help maintain the security of the VeChain Thor network.
Proposal System
This is similar to other master node systems such as DASH where community members create proposals for the network, this helps with continual and rapid innovation.
A community elected starring committee is responsible for the approval and execution of proposals via smart contracts.
VeChain is designed to scale up to 10,000 transactions per second, this can be done because of the distributed nature of the 101 authority nodes on the network helping validate transactions.
What's the results of all of this?
As more businesses will adopt VeChain to improve tracking their supply chain, the demand for VET token will also increase.
Images from : blog.vndc.io
That's indeed a great project, I wonder if it can surpass BCH pass in the future.