Everything You Need To Know About VeChain (VET)
VeChain is a company that offers Blockchain-based solutions for businesses across the globe on the VeChainThor platform. It aims to enhance supply chain management and business operations using comprehensive distributed governance and IoT. The purpose is to leverage Distributed Ledger Technology (DLT) to streamline these processes and information flow for Supply Chains. VeChain claims to provide a 360-degree view of crucial information related to businesses and their products. Its whitepaper outlines, “VeChainThor is a public blockchain that is designed for mass adoption of blockchain technology by business users of all sizes. It is intended to serve as the foundation for a sustainable and scalable business blockchain ecosystem.” Thus, the platform primarily focuses on supply chain management, anti-counterfeiting, carbon credits, asset management, client and customer experience.
The company was founded in 2015 as a part of BitSE, a Shanghai-based Blockchain-as-a-Service (BaaS). However, the first version was not launched until June 2016. With the launch of the protocol’s mainnet in 2018, the VeChain protocol was rebranded to VeChainThor. The Vechain Foundation is based in Singapore and is responsible for the VeChain ecosystem’s growth, governance, and advancement. The company has strong ties with China’s Government and industry, and endeavors to strengthen the relations more.
VeChain was created to be used by both small and large businesses. Their system has been proven in the real world with a range of industry Blockchain applications. As the VeChain Whitepaper 2.0 states, “these solutions are not just theoretical, they are solutions tested and discussed with over 700 enterprises and implemented for over 100+ fortune level enterprises.”
The working of VeChain
The VeChainThor blockchain functions in a similar manner to other blockchain systems for business. Businesses utilize VeChain ToolChain, a software development kit to design blockchain-based solutions. It is a Blockchain network that provides a wide range of services, including supply chain process control, product lifecycle management, data deposit, data certification, and process certification. The ToolChain is off the shelf, highly scalable, fully functional, secure, cost-effective, and provides independent deployment and customization. Additionally, VeChainThor also supports Smart contracts.
The Blockchain platform carries out single transactions to perform multiple tasks. Wherein, the application users are not required to hold any Cryptocurrency inorder to conduct transactions. Instead, app owners can execute this, resulting in a more convenient user experience for an average user.
VeChainThor Blockchain uses a Proof-of-Authority (PoA) consensus mechanism to delegate power to specific nodes in the network for transaction process and confirmation. This means it only sends transactional blocks via Authority Masternodes with a minimum holding of 25,000,000 VET. Here, Authority Masternodes are users that verify and add the transactions to the Blockchain. It is also important to note that the Foundation verifies all Authority Masternode operator identities.
Difference between VET and VTHO
VeChain uses a dual token strategy like Ethereum and NEO. This strategy mainly has two benefits:
- It provides effective governance.
- It provides a predictable economic model for the Blockchain.
VET and VTHO are two different VeChain tokens. VET is the coin that supports VeChain, while VTHO is the gas token utilized for transactions on the VeChainThor Blockchain.
VET (VeChain Token) is a Cryptocurrency that powers VeChain. It is used for both financial transactions and other activities on the VeChainThor Blockchain. Additionally, it can be used for spending, holding, sending, and staking. Users also have a motivation to own and stake VET tokens since they can vote for changes on the VeChain network. Whereas VTHO (VeThor Token) is like the energy token that is utilized to perform transactions. It can be generated by the VET owners and used on the VeChainThor Blockchain. VeChain-based applications will require VTHOR to complete transactions. If the applications become more popular, demand for VTHOR will increase, which will also raise demand for VET tokens.
Last but not least, the total supply of VET tokens is limited to 86.7 billion VET, wherein VET holdings are used to generate VTHO.
Companies associated with VeChain
VeChain is known for its strong ties with China, a crucial Blockchain market that is tough to break into for non-Chinese firms. While the company is headquartered in Singapore, it also has an office in Shanghai. Furthermore, it received financing from FutureCap, a Chinese Venture Capital Firm, and a Chinese CEO, Sunny Lu. The project also collaborated with several Chineses Government bodies such as the Chinese Animal Health and Food Safety Alliance. The organization provides Vechain solutions to many known partners, including Walmart China, Renault, PriceWaterCoopers (PwC), and Shanghai Waigaoqiao Direct Imported Goods.
Consequently, many large corporations are using VeChain Blockchain, such as -
- Walmart for food provenance tracking.
- BMW for preventing odometer fraud in automobile sales.
- LVMH for luxury leather goods tracking.
- Haier for anti-counterfeiting solutions and carbon credit ecosystem.
- H&M for supply chain data collection and sustainable wool tracking.
Use cases of VeChain
VeChain provides the following solutions:
- Digital Carbon Ecosystem
The Digital Carbon Ecosystem is a cutting-edge blockchain and IoT-powered carbon reduction platform that uses economic incentives to encourage individuals and businesses to join in carbon emission reduction. When consumers engage in low-carbon behaviours, such as purchasing low-carbon products, they earn carbon reduction credits. It can be redeemed for advantages from ecosystem partners like financial services providers and retailers.
2. Consumer Confidence Index
The Consumer Confidence Index (CCI) is a blockchain-based Digital Authentication Solution for retailers of perishable or delicate products. The platform’s data is verified by DNV, an independent third party, before being posted on the Blockchain. Post which, a confidence index is calculated with the use of a mathematical model. This approach enables the ecosystem’s participants to collaborate, empower one another, and ultimately establish a win-win situation for consumers and businesses.
VeChain assigns each vehicle a unique VeChain ID and a digital passport that includes the car’s lifecycle with the Automobile Solution based on the VeChainThor Blockchain. With the use of authentic data stored, the brand can assess the authenticity and quality of the auto parts. In addition, the access to the data can be shared by the vehicle owner to the third-party service providers. The data includes used car trading, automobile insurance, auto finance, and so on.
VeChain implements the traceability of retail products’ complete lifecycle management using Blockchain and Smart Tags (NFC/RFID/QR Code). The VeChain Pro mobile app (or client-integrated SDK) allows end-users to inspect and verify product details. Additionally, the retail solution can help with effective channel management, convenient financial services, and after-sales service.
The logistics sector solution supplied by VeChain enables participants to log the fundamental data originating from transportation by leveraging Blockchain and IoT technology. The information gathered is saved on the VeChainThor Blockchain. It allows the development of new logistical and business models. In addition, the data saved on the Blockchain can be used to create a variety of digital value-added services.
6. Liquified Natural Gas
The blockchain-based LNG solution keeps track of the critical information created during transit, storage, and online transactions. The information obtained is stored on the VeChainThor, allowing suppliers and users to share information. In addition, the system manages the quality assurance process for various forms of natural gas, including weighing practices, classification criteria, and transportation. All this data will be uploaded to the VeChainThor Blockchain to establish legitimate industry standards in accordance with regulatory mandates. The VeChainThor Blockchain will then track, share, and trade all aspects of the data, allowing the LNG market to be further regulated and improved.
7. Digital Content Distribution
The Blockchain-based digital content distribution solution enables storing of important data such as copyright registration, copyright transaction, and content distribution. It makes intellectual property traceable. This approach aims to reduce third-party involvement, making the circulation and transactions faster and transparent.
8. Document Management
The Electronic Certificate/Document Deposit Solution is a document management solution, co-developed by VeChain and its partners. It helps to manage documents, contracts, certificates, and bills. They are stored on VeChain after verification by the certification authority. This solution approach provides authentic data to the financial service providers and Government agencies.
VeChain’s blockchain-based agriculture solution is a big data platform. It is specifically created to track all agriculture-related data generated during planting/breeding, production and processing, packaging, logistics, and sales. VeChainThor will be used to store all of the acquired data. The Blockchain data can be shared with all participants and end-users with authorization, giving trustworthy data for analysis and promoting the growth of smart agriculture.
Which platforms support VeChain?
VeChain is one of the top 50 Cryptocurrencies in terms of market capitalization. Thus, it is supported by several popular Crypto Exchanges, such as -
How to store VeChain (VET)?
The VeChainThor official light wallet for Android and iOS allows you to store VET and VTHO, as well as other Crypto assets. VeChain Sync, the official desktop wallet, can also be used with the Ledger for cold wallet storage.
Third-party wallets that support VeChain are Exodus, Atomic Wallet, Trust Wallet, Guarda Wallet, Ellipal, Cobo Wallet, Crypto.com, MySafeWallet, and Arkane Wallet.
VeChain has a promising future, considering that it already has a strong presence in the Chinese market. It aspires to create a decentralized and trustless business ecosystem, facilitating transparent data flow, high-speed value transfers, and efficient collaboration. Furthermore, the VeChain Cryptocurrency is widely regarded as one of the good bets for Crypto investors because of its significant and influential partnerships and alliances.
With several well-known companies’ projects now running on the VeChainThor Blockchain, the company has demonstrated the maturing of the Blockchain industry. The platform is pushing the boundaries of Blockchain efficiency and assisting businesses in developing valuable Blockchain applications.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.