24 February 2024
To improve logistics and other corporate operations, VeChain has developed a blockchain platform. The purpose is to leverage distributed ledger technology to simplify these procedures and improve the flow of data for intricate supply chains. VeChain Token (VET), as well as VeChainThor Energy Token (VTH), are the 2 currencies that may be used on the Vechain platform (VTHO). The first is utilized for monetary exchange inside the VeChain network, while the second is the "gas" that fuels the operations of smart contracts.
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Beginning in 2015 as a personal consortium chain, VeChain has collaborated with several businesses to investigate potential blockchain use cases. As part of their move to the public blockchain, VeChain will issue the ERC-20 token VEN in 2017, followed by the release of their own mainnet under the symbol VET in 2018. In 2015, VeChain started as a personal consortium network, collaborating with a wide range of businesses to investigate potential uses for blockchain technology. VeChain's plan has always been to go to the public blockchain in stages, starting in 2017 with the ERC-20 token VEN and culminating in 2018 with the introduction of their own public blockchain, denoted by the symbol VET. When it was launched in 2015, VeChain was a personal consortium chain that collaborated with a variety of businesses to investigate potential blockchain use cases. VeChain plans to deploy its own main net under the ticker VET in 2018, after an ERC-20 token migration to the public blockchain in 2017. VeChain has shown significant improvements in effectiveness, predictability, as well as openness along a variety of use cases as well as contexts, including supply chains, information traces, and perhaps even innovative environments like that in San Marino that are aiming to achieve the United Nations Sustainable Development Goals.
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History of VeChain
Sunny Lu, formerly the CIO of Louis Vuitton China, established VeChain in 2015. One of the very few blockchains with a sizable client foundation among known enterprises, it began as a division of Bitse, one of China's major blockchain startups. The VEN coin was first designed to work with the Ethereum network. In 2018, VeChain migrated from its own blockchain as well as underwent a rebranding. In this rebranding process, the VEN blockchain evolved into the VeChainThor (VET) network.
What Makes VeChain Unique?
VeChain was founded with the express purpose of upending time-honored business practices; the company has gained the most notoriety for its efforts in the supply chain, a sector that has changed very little over the years. This has already achieved significant success with elevated clients and governmental agencies thanks to its efforts to provide a decentralized trust level for multi-party environments. Prices may be reduced by trustless mechanization utilizing smart contracts, as well as the protection, reliability, as well as convenience of monitoring of all types of information can be improved employing transparent technology with no specific point of vulnerability or control. Digital trust and collaboration have many practical applications, including carbon trading, supply chain management, international logistics, incentive-based environments, vehicle passports, and many more. As a result, VeChain's platform is appealing to a diverse range of businesses and consumers. According to the company's white paper, VeChain's unique selling point is its dual-token design, combined with transformational protocols like "fee delegation" as well as its one-stop "Toolchain" platform, which allows Crypto-averse businesses to spend in fiat for VeChain's blockchain-as-a-service, with fuel transaction fees handled by smart contracts to ensure seamless usage of the networks even now in stringent regions.
In order to reach an agreement, the VeChainThor blockchain relies on a process called Proof of Authority (PoA). This protocol governs the distribution of votes based on the ownership and public revelation of VET. Vote Equivalency Token (VET) investors without KYC authorization as well as 1 million coins in their account are allocated 20% of all votes, whereas VET investors with KYC and then the same amount in their account are accountable for 30% of all votes. For VeChain's blockchain to function, 101 master nodes must agree on the status of individual transactions. In contrast to Bitcoin, where agreement on a transaction is reached after votes from all nodes, this method just needs a majority of nodes to agree.
How Many VeChain Coins Are There In Circulation?
Two native coins exist on the VeChain network: VET (VeChain) as well as VET (VeThor) (VTHO). As a first-of-its-kind feature for this kind of service, the dual-token system was developed to mitigate the effects of price volatility and traffic overload. While VET is being utilized for transactions as well as other purposes, VTHO is used to pay transaction fees and serves as a "gas currency," equivalent to how ETH fuel is utilized for transactions. Although 70% of the VTHO utilized in VET payments is burned, VET owners get a tiny additional income in VTHO automatically. VET has a maximal limited supply of 86,712,634,466 coins, whereas VTHO is created depending on VET ownership.
VeChain may or may not be a good investment for you, but that's a call only you can make. You should perform your own due diligence before putting your money into Cryptocurrency due to its tremendous risks as well as volatility. Don't spend cash you simply can not manage based on a person's prediction, and also don't rely only on others' analysis.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.