Introduction: In this comprehensive article, we dive into VeChain to better understand it's impact on supply chain management, quality control, and anti-counterfeiting efforts. Additionally, we shed light on VeChain's advanced consensus model, governance structure, and partnerships!
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VeChain History
VeChain is a blockchain that aims to disrupt the supply chain world by leveraging distributed ledger technology (DLT), Internet of Things (IoT), and smart contract technology.
VeChain Website
VeChain was first introduced in 2015 by Sunny Lu, the former CIO of Louis Vuitton China, and quickly gained momentum in the blockchain industry.
The VeChain project started as a subsidiary of BitSE, a leading blockchain company based in China. In 2017 it rebranded itself as VeChain Thor and gained it's independence by creating its own blockchain.
VeChain is designed to improve transparency, reliability, and traceability in various industries, including luxury goods, agriculture, logistics, and government sectors.
Through the use of encrypted NFC/RFID chips and QR codes, VeChain enables users to track and verify the authenticity and origin of products throughout the supply chain.
This provides consumers with confidence in the products they purchase while allowing businesses to reduce counterfeit products and improve consumer trust.
Additionally, VeChain takes advantage of IoT devices to collect real-time data which is then securely stored on the blockchain network.
Through smart contracts, VeChain also enables the automation of various business operations, reducing costs and increasing efficiency.
In 2016, VeChain became the first blockchain company to partner with DNV GL, a renowned global quality assurance and risk management company.
This partnership was a major breakthrough for VeChain, as it enabled the integration of blockchain technology into DNV GL's certification services.
VeChain has also established partnerships with prominent companies such as PwC, Deloitte, BMW, and Kuehne + Nagel, further demonstrating its credibility and industry recognition.
What is VeChain?
VeChain enables organizations to track and verify the authenticity, quality, and integrity of products across various industries.
VeChain uses a dual-token system which consists of the VeChain Token (VET) and VeThor Token (VTHO).
VET acts as a store of value and can be used for various purposes, including staking, voting, and obtaining priority access to certain applications.
VTHO is the energy token used to power transactions and smart contracts on the network.
How does VeChain work?
VeChain built on a forked version of Ethereum's codebase which provides compatibility with Ethereum smart contracts.
Additionally, VeChain has implemented a customised Proof of Stake (PoS) consensus algorithm known as Proof of Authority (PoA).
VeChain operates on its own application specific blockchain which offers several unique features.
One of the key components is the VeChainThor Virtual Machine (VM), which is compatible with Ethereum's EVM and allows for executing smart contracts.
The VM supports various programming languages, making it easier for developers to deploy applications on the VeChain network.
Transaction fees can be paid in either VET or VTHO, providing flexibility to users while integration with Internet of Things (IoT) technology capture and store real-time data.
VeChain aims to achieve thousands of transactions per second (TPS) which is accomplished through a combination of the two-token system, fee-delegation mechanism, and the PoA consensus algorithm.
VeChain Coin (VET)
VeChain operates on a dual-token system, with VET being the primary asset on the platform. The VET token serves as the native currency used for transactions, payment of fees, and value-transfer within the VeChain ecosystem.
It is an ERC-20 token built on the Ethereum blockchain, but VeChain has also launched its own mainnet called VeChainThor, where users can convert their ERC-20 VET tokens into VeChainThor VET tokens.
VET can be used to:
Stake on the VeChainThor network. Staking rewards are distributed to VET holders based on the amount of VET they stake.
Participate in the governance of the VeChainThor platform. VET holders can vote on proposals that affect the future of the platform.
Pay for fees on the VeChainThor network. VET is the native currency of the VeChainThor ecosystem used pay for all transactions on the network.
VeChain Tokenomics
The tokenomics of VET are carefully designed to incentivize and reward participants for their contributions to the VeChain network.
The total supply of VET is fixed at 86,712,634,466 tokens and has remained constant since the project launched.
The VET tokens were initially distributed through a private sale and public token sale.
Alongside VET, VeChain introduced another token called VTHO (VeChainThor Energy). VTHO serves as the utility token used to pay for the costs of running and executing transactions on the VeChain network.
VTHO is generated by holding VET tokens, with holders receiving regular VTHO rewards based on their VET balance
Instead of requiring users to pay transaction fees in a separate cryptocurrency, VeChain ensures a seamless user experience by integrating the cost of transactions within the VTHO token.
At the time of writing (Jun 30, 2023), the price of VET tokens is $0.019 which means that VeChain is valued at a fully diluted market cap of $1.6 billion.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal.
Author
Mike Harry
Mike is a passionate crypto enthusiast who bought his first Bitcoin in 2016. With a natural curiosity and a love for learning and tinkering, Mike is always trying out new DeFi applications. Mike excels at breaking down difficult concepts into easy-to-read guides for beginners.
