Vechain 101

Introduction to Vechain (VechainThor)

History:

VeChain was founded in 2015 by Sunny Lu, former CIO of Louis Vuitton China. It started as a subsidiary of Bitse, one of China’s largest blockchain companies, and was originally named Ven. Ven was an ERC20 token running on the Ethereum network. Ven’s all-time high price was $9.45.

In 2017, Vechain executed an ICO. An ICO is an initial coin offering. Vechain raised 20 million dollars. This was done to fund the launch of the Vechain Thor mainnet. Mainnet migration from Ethereum to VechainThor took place in 2018.

Vechain Ecosystem:

Vechain is built on top of the VechainThor Blockchain. VechainThor is a dual token system model.

1. Vechain (Vet)
2. VeThor (Vtho)

Vechain is a proof-of-stake economy that rewards Vechain holders with Vethor. If you hold Vechain, you are entitled to Vethor, based on the amount of Vechain you hold.

What is Vechain?:

Vechain links products to consumers using blockchain technology. This is called supply chain management. Vechain has an internet-of-things layer which tracks assets on the blockchain, coupled with a smart contract layer, which says who owns the asset that is being tracked. The smart contract also provides the code to create decentralized applications to process the data.

1. Vechain (Vet)- The store of value and currency in the VechainThor ecosystem.
2. VeThor (Vtho) The “energy” or “power” used to make transactions on the VechainThor network.

Examples:

1. Vechain (Vet) would be used to pay for executing smart contracts
2. VeThor (Vtho) would be used to transfer Vechain (Vet) from one place to another.

VeThor Generation:

VeThor is generated at 0.000432 Vtho per Vet per day. (Vtho/Vet/Day) This is to keep Vechain and transaction fees stable. The Vechain Foundation can raise and lower transaction costs based on network conditions.

Blockchain Consensus:

Consensus on the VechainThor network is achieved through masternodes. These are Vechain holders who apply for the right to maintain the network. Masternodes consist of: academic partners, developers, enterprise users, business partners, and community contributors.

Two types of masternodes:

1. Authority Nodes
2. Economic Nodes

Community members create proposals for the VechainThor network. This helps with continual and rapid innovation on chain. Vechain is designed to scale up to 10,000 transactions per second. This is achieved through the authority nodes that help validate transactions.

If you would like more information please visit vechain’s official website: https://www.vechain.org/

VechainThor Whitepaper: https://www.vechain.org/whitepaper/#bit_65sv8

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