While recovering from the massive hit from Covid-19, our world underwent a digital transformation that, in turn, resulted in an explosive cryptocurrency growth. Shortly thereafter, an increasing number of businesses and industries were jumping on the bandwagon, intending to use the Blockchain technology to improve their own operations.
VeChain happens to be one of these “blockchain-based networks” in the crypto realm that have been playing a pivotal role in this revolution. With that in mind, in today’s detailed guide, you’ll learn everything about VeChain, including what it is, how its tokens are created, the foundation’s history (as well as several things that make VeChain so special.)
Without further delay, here is everything you ought to learn about VeChain and the solution it offers.
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Contents
- What Is VeChain (VET)?
- How Are VET Tokens Created And Stacked?
- History of VeChain
- What Makes The VeChain Foundation Unique?
- Where Can You Buy VeChain (VET)?
- Conclusion
What Is VeChain (VET)?
VeChain is a blockchain platform created to support both mass-market and private decentralized applications (DApps.) Since its founding in 2015, the Blockchain platform has quickly risen to become a contender for the “best enterprise-oriented Blockchain platform) race. It currently boasts a market cap of $1.34 million.
Regarding its use, VeChain is specially designed to help companies enhance supply chain management processes while simultaneously leveraging VeChainThor blockchain’s unique properties to use and build applications that can benefit the company moving forward.
The platform is basically primarily focused on providing solutions that allow these companies to connect their actual business operations with Blockchain services. Services like these have been applied to a wide range of use cases and industries, ranging from NFT ecosystems, gaming, FMCG, logistics, carbon, energy, and medical.
Since VeChain is now a global enterprise, its headquarters are scattered across different countries, like the US, Japan, China, Singapore, and France.
How Are VET Tokens Created And Stacked?
Using the oPoA mechanism, authority masternodes (AM) validate each transaction that takes place on the VeChain Blockchain network. An economic master node is a networked server on networks that runs these platforms and hosts the full copy of the Blockchain to create and validate blocks.
VeChain rewards these authority masternodes with VTHO tokens in that the nodes that create the blocks receive 30 percent of the VTHOs spent by transactions in every block. The other 70 percent is burned.
Note that these master nodes do not compete to create blocks on the VeChain Blockchain. Instead, a random algorithm will pick the block producer.
History of VeChain
VeChain was founded in 2015 in Singapore by Sunny Lu, the former Chief Information Officer (CIO) of Louis Vuitton, China. Back then, this Blockchain platform was a subdivision of Bitse. Bitse is among the largest Blockchain firms in China and also one of the few established blockchain firms with a substantial user base.
Today, the VeChain Steering Committee, the elected governing body, is at VeChain’s central authority governance system, representing the interests of every VeChainThor Blockchain stakeholder and overseeing different functional committees. Sunny Lu, George Kang, and Renato Grottola are members of this steering committee.
In 2018, VeChain rebranded as VeChainThor, and later in the 2nd quarter of the same year, the wallet and its own Blockchain were launched. The VeChain Foundation would later go on to release the whitepaper 2.0 the following year.
What Makes The VeChain Foundation Unique?
The VeChain Blockchain technology is a Blockchain platform designed to deliver holistic solutions to companies that intend to improve their effectiveness by developing new ways to manage their operations and do business. To ensure this is accomplished, the VeChain network has built a wide range of features and tools that make the network an attractive option for varying businesses.
These include;
1. NFT Capabilities
The VeChain ecosystem has featured an NFT functionality since 2018 when nodes got minted as Non-Fungible Tokens (NFTs) using VIP-181 tokens built into the VeChain foundation. Shortly after that, the certification and audit giant DNV started issuing their ISO (International Organization for Standardization) certificates and other kinds of certifications as NFTs on the VeChainThor blockchain.
Today, the NFT VeChain ecosystem is flourishing with game projects, as well as metaverse and commercial apps being developed on the platform. What’s more? In 2021, VeChain created a million-dollar fund for eNFT development in an effort to spur the development of the tech and enterprise adoption.
2. Trusted By Giants In The Industry
VeChain has repeatedly had effective collaboration relations and strategic partnerships with a huge number of reputable companies – most of which are already using its Blockchain network to improve their business processes. Names on this list of collaborating companies include Copper Dog, Walmart, Trusted Food, Grant Thronton, and BMW.
Better yet, Vechain’s channel partners, PwC and DNV, use white-labeled versions of the VeChain network, which they repackage before using for their own customers’ networks. Offerings like DNV’s MyStory all use VeChain’s underlying infrastructure while simultaneously packaging their platforms as their own offerings.
3. Sustainable Tokenomics
the VeChainThor protocol boasts a sustainable reward system for all node holders. Overall, 70 percent of all transaction fees are burned (which reduces the circulating supply), while the other 30 percent is paid to the authority master node operators.
4. Dual Token Economy
As we highlighted earlier already, the VeChain Blockchain operates on a two token system. the first crypto token is the VeChain Token (VET). Each of these vet tokens generates a set amount of the VeThor Token (VTHO) over time, which one can then utilize to pay transaction fees and costs.
This, in turn, helps keep costs associated with transactions lower when making frequent transactions or executing smart money contracts since the transaction fee can remain almost constant (thanks to the minimized speculative nature of the VeThor token.)
So basically, each VeChain token generates 0.000432 VTHO tokens each day. This implies you’ll need approximately 2,300 VET in order to earn a single VTHO per day.
5. High-Efficiency
Unlike most smart contract layer-capable Blockchains, the VeChain Blockchain platform is astoundingly effective and utilizes just a fraction of the energy used by competing businesses. We have the master node based consensus system to thank for that. And it effortlessly achieves all that without compromising the platform’s high-security level.
Regarding energy consumption, in a year, VeChain Blockchain projects use approximately 2.4 percent of the energy needed to produce a single bitcoin. Within the VeChain network, this ultra-efficiency translates to the cost of operations, helping maximize cost-efficiency for those running Blockchain-enabled apps.
6. Turnkey Offerings
Needless to say, building brand-new public blockchain based solutions is a challenging endeavor that requires firms to hire security specialists, smart contract developers, Blockchain engineers, and more.
With the VeChain network, however, companies can quickly leverage ranges of turnkey hardware and software solutions that they can rapidly deploy. They don’t even need prior experience to accomplish this. That, in turn, helps these businesses get their Blockchain projects up and running at a minimal cost and as fast as possible.
7. Fee Delegation Protocol (VIP 191)
The fee delegation protocol solution offered by VeChain allows companies to have the gas fees needed to access the network handled by a designated gas account and smart contract. This, in turn, implies that a firm can pay to use the network the same they would another Blockchain service, pay for any data they produce/use, and even access the VeChain ToolChain and the platform’s one-stop-shop services.
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Where Can You Buy VeChain (VET)?
Has this guide sparked an interest, and you’d like to take your shot at profiting from the VeChain network? Fret not. Like most other cryptocurrencies, the VeChain crypto coin is traded on a wide array of exchanges that facilitate the trade of digital assets.
Just ensure that the platform you’re about to work with is legitimately authorized and secure.
Conclusion
The VeChain foundation is yet another perfect example demonstrating how much the Blockchain technology has revolutionized our world. Businesses have been increasingly turning inventions like VeChain into strategic partners to improve their brand’s efficiency and transparency for the long haul.
As the Blockchain network keeps evolving, we can expect to witness even more profound impacts emerging in the near future. That’s your signal to give VeChain a chance if you haven’t already.
