What is vechain?
VeChain is a smart-contract blockchain platform that aims to improve business supply chain management through distributed ledger technology.
It is well-known for its product that tracks the movement of shipped goods and is used in a range of industries from fashion to food.
The VeChain platform has two tokens. VeChain Token (VET) is used to transfer value between users, while VeChainThor Energy (VTHO) is used as gas to power smart contracts.
VeChain supports both private and mass-market decentralized apps, also known as DApps as well as decentralized finance and nonfungible tokens. There are also plans for VeChain to become a leader in Internet of Things transactions and initial coin offerings.
The VeChain mission is to address barriers to entry that prevent businesses from using blockchain technology – and highlight how blockchain can be used to solve real-world business problems. Its technology has proven to be especially useful for logistics and tracking.
Since launching in 2015, VeChain has grown to become the 22nd biggest cryptocurrency platform and has built partnerships with many big name companies. Walmart, Trusted Foods and BMW are just a few examples.
Sunny Lu, the company’s CEO and co-founder, is a veteran in the world of IT infrastructure and a well-known name in the blockchain industry. VeChain has offices in more than 50 countries, including France, China, Japan and the United States.
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What is the history of VeChain?
VeChain was founded in 2015 by Sunny Lu, initially it was a subsidiary of blockchain company Bitse.
When VeChain launched, its whitepaper outlined goals that include disrupting the supply chain industry and making supply chains more efficient.
The whitepape summarizes Vechain’s mission as enabling “the blockchain community, business owners, enterprises, governments, or any other individual to move their business activities to blockchain effortlessly.”
VeChain began operations in 2016, introduced its mainmet VeChain Thor in 2018 and announced enterprise NFTs in May 2021. VeChain has also introduced the VeVote platform, which allows users to vote on potential changes and updates to the platform.
More recently, Vechain unveiled VeUSD, the first native stablecoin on the VeChain blockchain. It is pegged to the US dollar and is a VIP-180 token, a subset of the ERC-20 standard.
In the years since its inception, VeChain has made impressive partnerships such as providing blockchain solutions to high profile accounting firm PricewaterhouseCoopers.
After founding VeChain, Lu went on to launch the VeChain Foundation in 2017.
How does VeChain work?
In the business world, companies primarily use VeChain to track and verify products as they move through the supply chain. Vechain uses smart chips or radio frequency identification tags to send information about a product to the blockchain network in real time.
There are many useful, real-world applications for this technology. For example, VeChain chips are used to verify the authenticity of luxury goods like handbags, while VeChain technology can help grocery stores track food products and quickly identify ones that need to be recalled if there is the threat of contamination or food-borne illness.
Another example is the ability of automotive manufacturers to use VeChain to store data on specific cars – that allows future buyers to verify information such as the accuracy of the mileage.
VeChain uses the high-speed VeChainThor distributed ledger blockchain, which is designed to host enterprise scale dApps.
A unique aspect of VeChain Thor, is that it uses a consensus algorithm called proof-of-authority, which relies on masternodes to validate transactions.
Masternode operators oversee the protocol, maintain VeChainThor’s governance policy and securely execute smart contracts. Masternodes operators are selected by the VeChain Foundation and the VeChain community after passing rigourous Know Your Customer (KYC) checks.
Users with one million VET tokens and KYC are assigned 30 per cent of all votes, while those with one million tokens and no KYC are allotted 20 per cent.
Vechain uses a two-token economy system. VeChainThor is used to pay for gas, including transaction fees, in the VeChain environment and VeChain Token is the main transactional unit.
The primary Vechain product is VeChain ToolChain, a platform that helps businesses of all sizes use blockchain-powered solutions through blockchain-as-a-service (BaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions.
What makes VeChain unique?
There are several features that make Vechain unique compared to other blockchains.
- VeChain has two native tokens, while most blockchains have one. VeChain separated them to ensure stability for transaction fees.
- Its currencies follow the VIP180 standard, which was developed specifically for VeChain and is similar to Ethereum’s ERC-20 tokens.
- The VeChainThor blockchain uses the unique proof-of-authority consensus mechanism, which is less energy intensive and work intensive than proof-of-work
Can VeChain be mined?
No, Vechain can’t be mined. Because it runs on a proof-of-authority mechanism, a smaller number of computers do the work to validate and operate the network. That makes it unlikely individuals will have the opportunity to mine VeChain. However, the token can be bought from major cryptocurrency exchanges like Binance or Crypto.com and can be stored in a VeChain wallet, or a hardware wallet like Ledger.
VeChain is a smart-contract blockchain that offers blockchain-powered solutions for business such as a product that tracks the movement of shipped goods. Vechain’s smart chips can be used to send information about a product to the blockchain network in real time. Its goals include making it easier for companies of all sizes to incorporate blockchain solutions into their processes.
VeChain has two tokens, VET and VTHO and recently introduced VeUSD a stabelcoin pegged to the US dollar.
Transactions on DApps on the VeChain blockchain use VET, while VTHO is used to power transactions. The platform supports DApps and nonfungible tokens and there are plans for it to become a leader in Internet of Things transactions and initial coin offerings.
VeChain has seen immense growth since its launch in 2015 and now counts many big name companies among its partnerships.
Introducing VeVote allowed users to vote on changes and updates to the platform – for example, in 2021 the network voted to lower fees, a change experts say will bode well for those looking to use VeChain as a currency.