What Is VeChain?
VeChain is a blockchain platform designed to enhance supply chain management and business processes. Its goal is to streamline these processes and information flow for complex supply chains through the use of distributed ledger technology (DLT).
The Vechain platform contains two distinct tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). The former is used to transfer value across VeChain’s network, and the latter is used as energy or "gas" to power smart contract transactions.
Key Takeaways
- VeChain is an enterprise blockchain platform that aims to provide a full view of an organization by disintermediating information from data silos.
- VeChain also plans to become a leading platform for initial coin offerings (ICOs) and for conducting transactions between Internet of Things (IoT) connected devices.
- VeChain makes use of two tokens: VeChain token (VET) as a value layer and VeChain Thor Energy (VTHO) as a smart contract layer.
Understanding VeChain
VeChain states that its goal is “to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers.
Supply chain data for business processes are currently compartmentalized in silos among multiple stakeholders. This affects information flow, which is again divided among stakeholders.
According to VeChain’s white paper, blockchain technology can break “this asymmetric information problem and allow ownership of data to return to and empower its owner.” The VeChain platform claims to provide a 360-degree view of necessary information linked to a product and its business processes—such as storage, transportation, and supply—to authorized stakeholders and create greater market transparency.
Examples of How VeChain Can Be Used
For example, the platform can be used to track quality, authenticity, storage temperature, transportation medium, and last-mile delivery of a medicine pack or an alcohol bottle right from the manufacturing facility through to the final delivery to the end customer. To accomplish this goal, VeChain uses smart chips or Radio Frequency Identification (RFID) tags and sensors that broadcast key information onto the blockchain network that can be accessed in real-time by authorized stakeholders.
The application of sensors means that all parameters related to the product can be constantly monitored and problems, if any, can be communicated back to the relevant stakeholders. Manufacturers and customers are informed if a drug packet is stored outside a prescribed temperature range, allowing for service improvements and better quality control.
In another example, the VeChain platform can enable automobile owners to own their data and use it to negotiate better terms and policies with their insurance companies.
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 Bitse, one of China’s largest blockchain companies, and is among the few blockchains that already have a substantial customer base among established companies.
Initially, the VEN token functioned on theEthereumblockchain. VeChain transitioned onto its own blockchain and rebranded itself in 2018. As part of the rebrand, the VEN blockchain became the VeChainThor (VET) blockchain.
Goals for the VeChain blockchain platform are outlined in its white paper. 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.
VeChain has inked strategic partnerships over the years with several companies in order 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 Viseo, 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's Blockchain Platform
The VeChainThor blockchain platform is a public blockchain intended for “mass business adoption.” It has two tokens: VET and VTHO. 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.
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.
The concept is similar to that of Ethereum’s ether and NEO’s "gas" in that developers need to budget for a certain number of underlying tokens (which are not exposed to the public) in order to conduct transactions for their decentralized applications. Per VeChain’s white paper, the two-token system was devised for effective governance and to have a predictable economic model for decentralized applications developers.
In its current form, Ethereum lacks such a model because the price of ether, its native gas token, is volatile. As such, developers have to estimate the amount of ether required for a transaction. The transaction fails if their estimate turns out to be incorrect. VeChain’s white paper outlines several technical enhancements that its platform has made to overcome this problem.
For example, the VET blockchain allows Proof of Work (PoW) to be conducted for every transaction. This means that the people conducting a transaction can mine more VTHO if their initial estimate was wrong.
Governance Protocol
The VeChainThor blockchain uses Proof of Authority as a consensus protocol. Per this protocol, votes are disbursed based on VET holdings and disclosure. VET holders without know-your customer (KYC) credentials and with 1 million tokens in their account are assigned 20% of all votes while VET holders with KYC and the same amount in their accounts are responsible for 30%.
There are 101 master nodes responsible for reaching consensus on transactions in VeChain’s blockchain. This system is different from Bitcoin, which requires all nodes to vote on a transaction before reaching consensus.
Anonymous nodes are not allowed, and disclosure of identity is an essential pre-requisite to becoming an authority master node. According to VeChain’s white paper, this system uses less power and does not require a minimum number of validators to reach consensus.
The other type of master node in VeChain is the economic master node. These do not produce blocks or ledger records and are used as a check on power. This is done by allocating a certain number of votes to each economic master node based on their VET holdings. Each 10,000 VET held by an economic master node gets it a single vote.
The system of master nodes centralizes voting rights in a decentralized system. But the founders of VeChain have said that their aim in designing this protocol is to achieve a balance between centralization and decentralization.
FAQs
VeChain is a blockchain protocol that seeks to incentivize a network of computers to operate a platform allowing businesses to build and run decentralized applications (dapps).
What is the use of VeChain in real life? ›
VeChain is a layer-1 smart contract platform that allows developers to create unique smart contracts and DApps on top of it. Its applications in logistics, supply chain management and other industries help businesses enhance their operations.
What is the goal of the VeChain? ›
Smoothing out supply chain issues and easing information management for businesses is the main goal of the VeChain platform. The key to VeChain's mission are smart chips that are used to track all points related to a supply chain flow.
What makes VeChain unique? ›
The main features that set VeChain apart are its use cases for tracking goods and data. Businesses that require a verified chain of ownership through production, shipping, or other processes could use VeChain for that purpose.
How do you make money on VeChain? ›
4 steps to get your VET rewards
- Get wallet. Install the app on your system.
- Deposit crypto. Deposit VET to your account.
- Stake crypto. Choose a validator and stake VET.
- Claim Rewards. You can get rewards every 14 days.
VeChain is similar to the Hyperledger project but with the addition of fungible tokens for transactions as well as gas. VeChain's disadvantage, when compared to Hyperledger, is that, unlike Hyperledger, there is no private or permissible blockchain making all company data stored on Thor publicly available.
Does VeChain still have a future? ›
If this trend persists, VeChain might easily reach $1 within the next few years or even more. Anything might happen in the cryptocurrency market, so this is by no means a guarantee. However, VeChain appears to be positioned for long-term growth, and $1 seems like a reachable goal in the foreseeable future.
Who are VeChain competitors? ›
See how VeChain compares to similar products. VeChain's top competitors include Morpheus. Network, FoodLogiQ, and Moeco.
Is VeChain a strong project? ›
Yes. VeChain is an established top 50 coin and has a lot of potential. With this in mind, it is wise to say that VeChain is a good long-term investment. However, it might take some time before you can see any good profits.
What problem is VeChain solving? ›
VeChain (VET) is a blockchain platform that aims to revolutionize supply chain management and business operations. It uses a dual-token system, with VET for storing and transferring value and VeThor (VTHO) for paying transactions and executing smart contracts.
List of VeChain Partnerships
- Kuehne & Nagel. Industry: Supply chain and Logistics. ...
- Direct Imported Goods (D.I.G) Industry: Wine importer. ...
- PriceWaterhouseCoopers (PwC) Industry: Audit and advisory. ...
- National Research Consulting Center (NRCC) Industry: Consulting. ...
- Groupe Renault. Industry: Automotive. ...
- BitOcean. ...
- Fanghuwang. ...
- DNV GL.
History. VeChain is a multi-purpose enterprise blockchain for improving business operations and product tracking. VeChain blockchain development started in 2015 as a modified fork of Ethereum with a design focus on Internet of Things (IoT) and supply chain management.
Does VeChain have potential? ›
For the last 7 days, VET has been in a good upward trend, thus increasing by 12.65%. VeChain has shown very strong potential lately, and this could be a good opportunity to dig right in and invest.
Why is VeChain so cheap? ›
VeChain is cheap because its oversized maximum token supply limits the potential growth of its market cap and also due to the poor reception and adoption its blockchain technology has received from the supply chain industry.
Do any companies use VeChain? ›
Companies that use VeChain in their supply chain operations
Walmart China collaborated with VeChain to track and authenticate the supply chain of its food products. The partnership aims to improve food safety and quality assurance for customers.
How much is 500 dollars in VeChain? ›
USD to VET
| Amount | Today at 10:16 am |
|---|
| 10 USD | 514.63 VET |
| 50 USD | 2,573.16 VET |
| 100 USD | 5,146.32 VET |
| 500 USD | 25,731.60 VET |
4 more rowsWill vechain reach $10 within the next few years? The majority of crypto experts has, however, expressed reservations about VeChain's ability to reach $10 within the next few years. But they all agree that the altcoin will most likely remain bullish for the entirety of this period.
Who is investing in VeChain? ›
DNV GL and PwC are the most recent investors.
Is Vechain good for long term? ›
Answer: VeChain VET is a good investment judging by the value generated by and in blockchain and VET crypto.
Can VeChain reach $100? ›
Yes, Vechain Can Reach 100 Dollars
As proven by other altcoins like AAVE and DOGE in the past, Vechain can reach 100 dollars. However, it is unlikely to happen anytime soon as growth will slow down now that most of the market is under capture.
It is highly probable that VeChain will reach $5. A few analysts expect it to get here within the next 5 years, but the majority can only see VET rising to this price level in the next 10 years. These crypto experts, however, contend that with a few triggers, VeChain may reach the $5 target price sooner than expected.
How high can VeChain go in 2025? ›
VeChain price prediction 2025: VeChain's price for 2025 according to our analysis should range between $0.024 to $0.036 and the average price of VET should be around $0.03.
How many VeChain coins are left? ›
About VeChain
VET has a circulating supply of 72.71 B VET and a max supply of 86.71 B VET.
Is VeChain a Chinese coin? ›
Hong Kong's move to allow retail investors to trade crypto has sparked demand for Chinese crypto tokens, including Conflux (CFX) , VeChain (VET) , and Filecoin (FIL) .
Which country does VeChain belong to? ›
VeChain is a Singapore-based company founded by Sunny Lu in 2015.
Does VeChain have a limited supply? ›
Is VeChain limited supply? VeChain's maximum token supply currently stands at 86.712 billion tokens. According to CoinMarketCap, 64.3156 billion tokens are currently circulating meaning 25.8% of the supply can be validated.
Which crypto will boom in 2023? ›
Brief on Top 5 cryptocurrencies you can invest in 2023
- DeeLance - Decentralized freelancer marketplace with upcoming Metaverse.
- Love Hate Inu - Exciting new meme coin with vote-to-earn rewards.
- Ecoterra - Sustainable crypto project that pays users to recycle.
- RobotEra - Virtual sandbox to build and earn.
Bitcoin gives you much flexibility, letting you send and receive money anywhere. It's very safe to do bitcoin transactions because they're encrypted and irreversible. Bitcoin is easy to buy and use, and there are many ways to use it. Bitcoin can be a very profitable investment over the long term.
Will VeChain bounce back? ›
The VeChain price prediction for 2025 stood at $0.00251. Gov Capital projected prices could rise to $0.1256 by the next 12 months. Its VET price prediction for 2022 had the token reaching $0.063, followed by $0.197 in 2023, and $0.58 in 2025.
What blockchain is VeChain built on? ›
VeChain was initially built on the Ethereum blockchain, and it later deployed its separate ecosystem, the VeChainThor blockchain. Compared to other smart contract-capable blockchains, VeChainThor is more efficient and consumes less energy using its master node-based consensus.
Earlier this year, the VeChain Foundation and Amazon Web Services partnered to develop a carbon-neutral digital infrastructure that enables businesses to manage their carbon footprint and meet their emissions goals.
Is Walmart using VeChain? ›
highlights that Walmart has benefited from adopting VeChain blockchain. VeChain has also benefited from the partnership as Walmart drives transaction volume to the network.
Is VeChain partnered with Amazon? ›
The VeChain Foundation recently revealed a partnership with Amazon Web Services (AWS) to support their VeCarbon platform.
What is the project of VeChain? ›
VeChain is a blockchain development project offering a proof of authority (PoA) blockchain for various businesses to use. This Shanghai-born company has proven to be usable in various sectors as it's being adapted by a number of companies and projects worldwide.
Is VeChain a good company? ›
Venhan is rated 2.6 out of 5, based on 3 reviews by employees on AmbitionBox. Venhan is known for Salary & Benefits which is rated at the top and given a rating of 3.8. However, Skill development is rated the lowest at 2.9 and can be improved.
How much will VeChain be worth in 2030? ›
VeChain Price Prediction 2030
| Years | Avg Price | Lowest Price |
|---|
| May 2030 | $0.17 | $0.15 |
| June 2030 | $0.17 | $0.16 |
| July 2030 | $0.17 | $0.16 |
| August 2030 | $0.18 | $0.17 |
8 more rowsCrypto is not dead. Nor does it look like it can, would or should ever be shut down. Still, two elements may make it a dead investment class for you. Firstly, you may not find the risks of crypto worth taking - it is arguably a riskier investment asset than other traditional classes.
What is the ranking of VeChain? ›
Currently, VeChain rank on the market is #42. VeChain price today is 93.06% below all time high, and it is 1,051.54% above all time low. All data and prices are updated in real-time.
Will VeChain be listed on Coinbase? ›
Currently, VeChain is not supported across Coinbase's ecosystem regardless of payment system, including PayPal.
Is VeChain like Ethereum? ›
Both VeChain and Ethereum use blockchain technology, but they have different implementations. VeChain uses a Proof of Authority (PoA) consensus algorithm, while Ethereum uses a Proof of Work (PoW) consensus algorithm. PoA is faster and more efficient than PoW, but it is also more centralized.
100 US Dollar is 5172.928 VeChain.
Can US citizens buy VeChain? ›
KuCoin currently offers VeChain (VET) cryptocurrency trading as well as over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts USA residents.
Does BMW use VeChain? ›
In a recent tweet, Vechain cites its partnership with some of the world's most valued vehicle brands including BYD, Renault and BMW, as proof of its significance in the industry. The use cases for #VeChain's #blockchain technology are limitless.
Is VeChain worth investing in? ›
Yes. VeChain is an established top 50 coin and has a lot of potential. With this in mind, it is wise to say that VeChain is a good long-term investment. However, it might take some time before you can see any good profits.
Will VeChain ever be worth anything? ›
Crypto analysts expect that at the end of summer 2023, the VET price will be around $$0.024. In November 2023, the VeChain cost may drop to a minimum of $$0.023. The expected peak value might be $$0.026 in November 2023.
Could VeChain hit $10? ›
Will vechain reach $10 within the next few years? The majority of crypto experts has, however, expressed reservations about VeChain's ability to reach $10 within the next few years. But they all agree that the altcoin will most likely remain bullish for the entirety of this period.
Is VeChain good for long term? ›
Answer: VeChain VET is a good investment judging by the value generated by and in blockchain and VET crypto.
Will VeChain hit $2? ›
This will happen by 2026 if our forecast is correct. Less than five years later, by 2030, VeChain will even trade above $2.
How much will VeChain be in 2030? ›
VeChain price prediction March 2030: VeChain's price for March 2030 according to our analysis should range between $0.09 to $0.1 and the average price of VET should be around $0.097.
How much is 50 usd in VeChain? ›
VeChain Price Prediction 2030
By the time we reach 2030, the VET crypto might have reached the maximum price of $0.231, while the minimum price may be around $0.151, based on our VET price prediction 2030.
