What is VeChain?
VeChain is a distributed ledger technology network that aims to improve supply chain management and business processes. Its aim is to use distributed ledger systems to streamline certain processes and knowledge flow for dynamic supply chains (DLT). VeChain also wants to be a leading forum for initial coin offerings (ICOs) and transfers between IoT-connected devices.
VeChain Token (VET) and VeChainThor Energy (VET) are two different tokens on the VeChain network (VTHO). The former is used to transmit value through VeChain’s network, whereas the latter is used to fuel smart contract transactions as energy or “gas.”
VeChain is a company that offers blockchain applications to companies all over the world. Their technologies have been proven in the modern world for a variety of existing business blockchain implementations ranging from supply chain tracking to anti-counterfeiting and carbon credits. VET is the VeChain coin, and VTHO is the gas token used for transactions on the VeChainThor network (similar to Ethereum’s gas).
VeChain is an organizational blockchain network that seeks to disintermediate knowledge from data silos in order to have a complete picture of an entity. VeChain uses two tokens as a value layer and a smart contract node: VeChain token (VET) and VeChain Thor Energy (VTHO).
How Does Vechain Work?
Many players are currently compartmentalizing supply chain details for market operations in silos. This has an impact on the flow of knowledge, which is again divided among stakeholders.
Blockchain technology, according to VeChain’s white paper, will solve “this asymmetric knowledge issue by allowing data control to return to and motivate its user.” The VeChain network claims to provide approved customers with a 360-degree view of critical details related to a commodity and its business processes—such as storage, transportation, and supply—and to increase consumer transparency.
The platform will, for example, be used to monitor the consistency, validity, storage temperature, shipping medium, and last-mile distribution of a drug pack or an alcohol container from the production plant to the end-user. VeChain achieves this aim by employing smart chips, RFID tags, and sensors that broadcast key details into the blockchain network, which can be viewed in real-time by approved stakeholders.
Sensors enable all product parameters to be continuously tracked and any issues to be reported to the appropriate stakeholders. If a prescription package is kept outside of a specified temperature range, manufacturers and consumers are notified, allowing for proper service and quality management.
The VeChainThor network operates in a similar way to other blockchain platforms for the company. Businesses develop blockchain-based applications using ToolChain, VeChain’s fully functioning Blockchain-as-a-Service (BaaS) product. Smart contracts are also supported by VeChainThor.
On the VeChainThor network, a single transaction may perform several tasks. Furthermore, VeChain software users do not need any cryptocurrency to conduct transactions. Instead, app owners should do this, making the consumer interface more comfortable for the ordinary person.
Proof of Authority (PoA) agreement is used on the VeChainThor network to transfer control to specific nodes in the VeChainThor blockchain for transaction confirmation. This ensures it just sends transactional blocks to Authority Masternodes with a minimum VET holding of 25,000,000.
What is the History of VeChain?
Sunny Lu, the longtime chief information officer of Louis Vuitton China, and Jay Zhang co-founded VeChain in 2015. In 2017, the VeChain project launched the cryptocurrency, VEN, on the Ethereum network as part of a crowdsale that generated $20 million and sold 1 billion tokens.
When the VeChainThor blockchain was introduced, these tokens were substituted by VET tokens (also known as VET coins). At a 1:100 scale, VEN tokens were exchanged for VET tokens.
How Do I hold VeChain?
The official desktop wallet is VeChain Sync. Users can view and handle VET, VTHO, and VIP180 tokens by connecting their Ledger computer to the VeChain Sync. Users can also use TrustWallet to hold VeChain tokens.