What is VeChain (VET)? VeChain (VET) Cryptocurrency: More Than Blockchain Tracking Platform

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Blockchaingalaxy

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I. What is VeChain (VET)?

VeChain is a blockchain built to help make supply chain management simpler. It was originally conceived as a way to determine if a real-life product is fake or not - preventing frauds and knock-offs. Since then it's been used by major corporations to help track everything from wine production to car manufacturing.

The way it does that is simple: give each product a unique identity, then use sensors to track what happens at each stage of the supply chain. That way, companies can be sure products are handled correctly, and consumers can verify their purchases are legitimate.

Central to running the operations on its blockchain, VeChain boasts two native cryptocurrencies, VET coin, for voting on changes to the protocol, and VTHOR, for executing transactions.

VeChain (VET) token is a cryptocurrency VeChain (VET) tokens are used as a store and transfer of value, like most other cryptocurrencies. It is responsible for sorting value from smart contracts. It serves as an increment of value within the VeChain blockchain. Transactions on DeFi applications occurring on VeChain’s blockchain are carried out using a VET token​

II. How Does VeChain (VET) Work?

VeChain (VET) is built on the VeChainThor blockchain, a high-speed, general-purpose smart contract distributed ledger platform that is designed to host enterprise-scale dApps.

The platform leverages a unique consensus algorithm known as Proof of Authority (PoA) to help maintain the blockchain and secure transactions. This leverages a network of 101 Authority Masternode operators who maintain the protocol and uphold the VeChainThor governance policy while securely processing transactions and executing smart contract operations.

To become a Masternode operator, users need to pass stringent KYC checks under the guidance of the steering committee and be able to contribute to the growth of the network in some form — either as a developer, KOL, company, or some other entity of net benefit to growth.

The VeChainThor blockchain uses a two-token economy system to separate speculation from operating costs. The first token, VeChain (VET), is the main transactional unit used in the VeChain ecosystem, whereas VeChainThor (VTHO) is used to pay for gas costs (including transaction fees and smart contract execution costs). This ensures businesses can be more certain of their operating costs, rather than being subject to the whims of speculators and excess market volatility.

VeChain’s main product offering is known as VeChain ToolChain. This is a robust blockchain application platform that features a variety of blockchain-as-a-service (BaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions — helping both small and larger businesses build and deploy blockchain-powered solutions in record time.

The PaaS version of VeChain ToolChain provides developers with a range of tools that can be used to create powerful DApps with limited coding required. It also includes a few off-the-shelf services, including a food traceability platform, a digital carbon footprint solution, and a risk self-assessment application known as VeTrust. Overall, VeChain ToolChain helps businesses leverage the benefits of blockchain technology, without having to build everything from scratch.

Since VeChain launched back in 2016, it has completed a large number of substantial roadmap items, including launching its mainnet (VeChainThor) in June 2018, introducing the VeVote platform, launching solutions for the food safety, automobile, retail, logistics, and agriculture industries, and announced enterprise NFTs (eNFTs) in May 2021.

As of September 2021, VeChain’s next major upgrade is the initial implementation of the second iteration of its Proof of Authority (PoA) consensus, as well as deployment of the blockchain-based voting platform — VeVote.

III. VeChain (VET)’s Utilities and Use Cases

VeChain (VET) has proved to be practicable in the following areas:​
  • Anti-counterfeiting. This is recognized as one big problem in the luxury goods market. By integrating the VeChain blockchain solution through an encrypted chip and then using the chip to log and trace logistics, warehousing, maintenance, and resale, owners can be sure of authenticity. This has been tested and proven right by a Shanghai Waigaoqiao Direct Imported Goods for tracing luxury wine. Additionally, Renault luxury vehicles have used it to test vehicle components.​
  • VeChain Internet of Things (IoT) devices can be deployed across the supply chain, including products, vehicles, and warehouses. Then, environmental and location-based data from these devices can be uploaded, verified, and stored in a tamper-proof, decentralized manner on the VeChainThor blockchain. Solutions like this are already in effect for several companies, including Shenzhen Yuhongtai Foods.​
  • Health records. Healthcare record systems are flawed for old-versioned practice. A proper health record is essential. With human labor, there are inefficient and insecure record systems for lab results. The VeChain blockchain can offer a seamless, secure, and efficient record system accessible to patients and other authorized parties. A VeChain-based E-HCert App will be rolled out to patients of both the Mediterranean Hospital of Cyprus and Aretaeio Hospital in 2021.​
  • Further, by driving carbon reduction by tracking carbon-emitting activities, VeChain also allows consumers to be involved in a carbon-saving scheme. When smart devices, such as cars or appliances, show that consumers generate less carbon, they can then receive credits to be used on energy services. BYD, a Chinese electric car brand, already operates a Vechain solution.​

IV. Should you buy VeChain (VET)?


VeChain (VET) token does have potential, and could possibly be a good investment. Despite the crypto market’s volatility, it has shown growth over the past few years, and it’s showing massive prospects of further growth.

However, before you consider buying any project, you should do your own research (DYOR) and analyze the possible market price for VET. Do some technical analysis — support level and resistance level to minimize the risk and trade safely.

VeChain (VET) tokens are available on major crypto exchanges. VET can be purchased on exchanges like Binance and Huobi.​

V. The future of VeChain (VET)


Now that VeChain (VET) is equipped with its own platform, has a solid track record of delivering on promises, and secured desirable partnerships with major companies, the sky's the limit.

There are future announcements expected about their partnerships with BMW and Renault, and there is no telling how many more companies under PwC's banner that VeChain will attract.

The currency is largely viewed as a good bet for investors, with so many influential partners to its name and real-world application.​
 

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