VeChain is a Chinese blockchain platform for the commercial sector. In its network, Consensus is achieved by the Proof-of-Authority (PoA) algorithm.
Transactions and smart contracts are paid for by a separate VeChain Thor Energy (VTHO) token. This analogue of gas (Gas) Ethereum is independent of the price of the primary VeChain token (VET) so that the growth in the value of the underlying asset does not affect the high cost of user service.
| Official Website | https://www.vechain.org/ |
| Launched in | 2017 |
| Disbursement | N/A |
| Liquidity | Medium |
| License | Open-source |
| Original author | Sunny Lu |
| Active hosts | 101 |
| Limits | 86,712,634,466 VET |
| Private Transactions | No |
| Public vs. Private | Public |
VeChain: Key Facts
Bitse, the largest blockchain company in China, began developing a commercial product on DLT (Distributed Ledger Technology) in 2015. Sunny Lu, former CIO of Louis Vuitton China, led the VeChain project.
The platform focuses on servicing financial services, supply chains, and Internet of Things (IoT, Internet of Things) devices. One of the first to conclude cooperation agreements with the Chinese government.
Initially, the network was tested on top of Ethereum, and the VEN token circulated as ERC-20. After the rebranding in 2018, each VEN from ETH must be converted into the new VET cryptocurrency in the VeChain Thor own network in proportions of 100 new ones for one old one.
VeChain has gained a real customer base among world-famous companies: BIOS, BJT, BMW, Swell, D.I.G, DNV, Green Marks, Logsafer, Made of Goods, Renault, PJP, ENN, H&M, and Walmart.
In January 2021, the “Sync 2” update was released. Compatibility with all popular browsers and operating systems has been implemented, which has increased the possibility of using DApps (decentralised applications) on stationary and mobile devices.
A total of 1 billion tokens have been generated.
During the ICO, part of the coins of Chinese citizens (13.3% of the total issue) was burned.
There are now 86 billion tokens in circulation because the conversion of the VEN token into the native cryptocurrency VeChain (VET) took place in proportions of 1:100.
- 41% – public ICO.
- 32% – closed presale and corporate investors.
- 12% – development fund.
- 10% – fund for business implementation.
- 5% – assets of team members.
What Is VeChain?
The VeChain blockchain is built on a modified version of the Ethereum codebase. VeChain has optimised its blockchain (called Thor) for enterprise use cases. Thor is the core of the VeChain blockchain. It is the base layer for messaging, key management, and data storage. Business applications can create smart contracts based on Thor.
VeChain ID is a key component of the system. Physical goods and devices receive unique digital identifiers hashed using SHA256. They can be tracked and accessed via NFC, RFID, and QR.
Consensus is reached by the Proof-of-Authority (PoA) algorithm. There are 101 master nodes. All of them pass KYC (Know Your Customer), confirm their identity, and are also legally responsible for minting blocks. The VeChain Foundation elects them to be active validators. The nodes are then pseudo-randomly shuffled regularly and confirmed transactions. To become a master node, you must reserve from 1,000,000 VET to 15,000,000 or more VET.
VeChain is a cryptocurrency that does not require votes from all nodes. This speeds up the consensus process. Block Time (Block Time) in VeChain is 10 seconds.
Economic Nodes and X-nodes are two more types of nodes. Any user can act in their role. To do this, he pays part of his VeChain VET, and buys access for a limited amount of time (several days).
The cost starts from 18,000 VET and goes up to 1,600,000 VET. These packages are sold on the official marketplace. Computing power is not required. They bring profitability to owners on the principle of staking.
Mining the Vicechain cryptocurrency is impossible since the consensus does not need Proof-of-Work (Proof of Work). Instead of ASICs and video cards, a coordinated attack is opposed by verified nodes with a large VET balance.
The VeChain platform includes two main components, a digital identifier containing complete information about the characteristics and location of the object, as well as a blockchain network in which all this data is securely stored without the possibility of changing it. Thus, the possibility of buying and producing counterfeit goods is excluded.
How VeChain Works
Users are divided into consumers and providers.
Consumers can be ordinary users, VeChain token holders, manufacturers, retailers, and corporate clients. They make write or read transactions from decentralised ledgers.
Providers create DApps (software applications) and smart contracts using blockchain.
The VeChain network handles a load of 10,000 TPS (transactions per second). Bitcoin has a throughput of 7 TPS, and Ethereum of, the first version, has 13 TPS.
Toolchain
The ready-made BaaS (Blockchain-as-a-Service) platform provides developers with tools in the form of an API and SDK.
Mobile applications, IoT chips and sensors can be used in business projects to track goods, digitise documentation and accounting, and securely place data on the VeChain blockchain.
Partners and consumers verify public information and can be sure that records are not forged or deleted.
In the example of wine production: blockchain technology accompanies the complete cycle, protecting the winery from counterfeiting and theft.
There are three types of subscriptions:
- Standard Version (available as a free trial version)
- Developer Version
- Partner Version (issued by agreement after contacting the consultant).
Cryptocurrency VeChain
There are two independent coins circulating in the network: VeChain (VET) and VeChain Thor Power (VTHO). This guarantees stable commissions and protects developers and users from overpayments (due to the increase in the VET rate).
VeChain Token (VET)
The primary token is a measure of storage and a decentralised share of VeChain. They cannot pay commissions, but you can buy a subscription to an “economic” node for VET and receive profitability. Plus, to have voice power, the company still strives to create an island of decentralisation.
Thor Power Token (VTHO)
VTHO is automatically accumulated on balance. For every 1 VET, 0.000432 VTHO is credited to the account daily.
30% of VTHO spent on transaction fees will receive controller nodes as a reward for their work. And 70% of the tokens are burned.
Pros of VeChain
- A well-known development team with experience in launching and promoting decentralised systems
- Support from the Chinese government, which in the future enable the project to rapidly develop in the largest market in the world
- Partnerships with large corporations that already use this technology
- Good scalability of the blockchain network and the possibility of microtransactions, which subsequently paves the way for the use of VeChain in the development of the concept of “Internet of things.”
The Vechain blockchain consensus mechanism is based on Proof-of-Authority (PoA). The algorithm provides for a fixed number of authoritative validators (Authority Masternodes) and excludes anonymous block producers.
To become a masternode, an individual or entity must be authenticated by the VeChain foundation. After passing a strict security procedure, the validator is empowered to create blocks. There are 101 masternodes in the network. According to the developers, the Proof-of-Authority consensus has an advantage over the Proof-of-Work algorithm and has a beneficial effect on the scalability of the blockchain.
The PoA protocol differs from other principles:
- The requirements for computing power are low.
- Communication between authoritative validators is not required to reach a consensus.
- The system is continuous and does not depend on the number of masternodes.
- Mining with the Proof-of-Authority algorithm is not available to users. You can only get coins by staking, that is, by keeping coins in your account.
Cons of VeChain
The main disadvantage of VeChain is the centralisation of the system, as it is planned that the VeChain fund will independently choose masternodes for confirming transactions, and this will lead to the concentration of most of the assets on the deposits of a small group of people who will be able to manipulate the VET market rate and make changes to the system code without consent project participants.
VeChain in Numbers
- Market Cap: $1,324,530,388
- Fully Diluted Market Cap: $1,584,095,317
- Circulating Supply: 72,511,146,418 VET
- Trading Volume 24h: $31,386,447
- Market Rank: #35
- Market Dominance: 0.16%
- Volume / Market Cap: 0.02369
How Can I Obtain VeChain?
Tokens cannot be mined as they are distributed among a limited number of authorised validators. Therefore, there are not many ways to get a coin.
Purchase
VET digital coins are traded on crypto exchanges. The main volume of the coin is concentrated on the Binance platform.
For fiat money, a token can be bought on almost any well-known exchange, for example, Huobi Global, KuCoin, Bitfinex or HitBTC. Before choosing a site, it is essential to familiarize yourself with the commissions and methods for withdrawing assets in advance.
Exchange
Dozens of sites offer to convert fiat, bitcoin or Ethereum to VET. Services provide different methods of exchange and conditions. It is recommended to read user reviews to choose a reliable resource.
The procedure for receiving coins in exchangers is simpler than on crypto exchanges, but the exchange rate is often too high.
Mining
The generation of VET crypto coins using computer systems is not provided due to the use of a secure Prof-of-Stake confirmation algorithm.
However, according to the developers, after the launch of the full version of the platform, any user who has a sufficient number of VET coins on deposit, as well as having computing equipment of a certain capacity, will have the opportunity to participate in confirming transactions for a reward in VET crypto coins, specially allocated for mining during the initial distribution of tokens.
How to Buy VeChain?
The VeChain (VET) cryptocurrency is listed on many crypto exchanges, but the bulk of trading is done on Binance. Let’s consider the process in detail.
Step by step guide on how to buy VeChain on Binance:
- You need to create an account. Registration is available for most countries. Verification is not required when withdrawing less than 2 BTC (or another cryptocurrency) within 24 hours.
- Enable two-factor protection in your personal account. This will secure your account.
- Top up your balance. The following pairs are available on the exchange: VET/USDT, VET/BTC, VET/BNB, and VET/ETH. This means that you can buy (exchange) the VET cryptocurrency for quoted currencies: Bitcoin, Binance Coin, Ethereum, and Tether. To trade, transfer the indicated coins from your external wallet to the exchange address.
Going to the trading terminal, select the currency pair on the right side of the site: the quoted currency and enter the ticker VET in the search bar.
Fees
The fees tend to change depending on the sum of transactions. See the table below for more details:
| Amount in VET | Fee |
| 6 VET | $0.11 |
| 20 VET | $0.38 |
Transaction Speed
Network speed is an aspect that developers paid special attention to. The speed of operations of the VET crypt is the advantage of the project. The tests carried out showed the ability to process up to 10,000 transactions per second. The average VeChain transaction speed is 6 minutes. Transaction fees are negligible, and the distributed application engine removes block size limits.
What Can VeChain Do?
VeChain provides proven solutions for the following areas:
- Retail
- Logistics
- Cars
- Consumer confidence index
- Digitalization of monitoring of emissions into the environment
- Distribution of digital content
- Document management
- Agriculture.
Main strategic partners:
- Det Norske Veritas and Germanischer Lloyd (DNV GL)
- PriceWaterhouseCoopers (PwC)
- National Research Consulting Center (NRCC)
- Yida China Holdings Limited
- Bitocean.
The VeChain platform was created by China’s leading blockchain company, Bitse. Participation in government and commercial projects can make it an important element of the East, or the whole world.
In addition to this, there are some other fields of application.
The main area of activity of VeChain is logistics, but this cryptosystem can also be applied in the following areas, these are
- Alcohol industry, since food security is a big problem for many countries, and VeChain has created a product identification system that is tracked from the start of the production process to receipt on store shelves
- Luxury goods manufacturers are constantly faced with fake brands, but this technology will allow you to get all the information about the former owners of a particular item, as well as find it in case of theft or loss, almost anywhere, using NFC chips that transmit signals to various devices in the ecosystem
- The automotive industry, VeChain will be a revolutionary technology, as most of the information about the maintenance and former owners of a car are now contained on paper, which is easy to fake. Also, when using NFC chips, it will become pointless to twist the mileage and hide information about the accident, since all information will be securely stored in a decentralized network
- Agriculture in many countries is faced with inefficient production, low productivity and inappropriate use of various fertilizers, which ultimately negatively affects the profitability of agro-industrial firms, and also causes significant damage to the environment. With the use of VeChain, the work of agricultural machinery and workers will become as transparent as possible, which will allow the management of the enterprise to make effective decisions
- Frozen food delivery logistics is at great risk due to non-compliance with storage conditions such as temperature and humidity, which can ultimately lead to product spoilage when selling goods at retail outlets, but when using VeChain, all transportation data will be stored in the blockchain, which eliminates the possibility of delivering low-quality products.
The Latest News About VeChain
The following can affect the quotes of a digital asset:
Excitement around the coin. Analysts have proven that the activity of users on the network and the strengthening of the news background affect the course.
- Trust or lack of it on the part of large corporations, and states.
- Quotes of other competing cryptocurrencies.
- Negative news about hacks or platform vulnerabilities.
- Changes in the regulation of digital coins at the state level.
- Publications of developers about updates and development plans.
These factors have both positive and negative impacts on coin quotes.
Against the backdrop of a general increase in demand for cryptocurrencies in April 2022, the price of VeChain reached an all-time high of $0.25 per token. The news that Salesforce, the largest company in the field of customer relationship management, is starting to test the platform, increased interest in the project.
However, by June, the price sharply turned down and went into a sideways movement at around $0.06-0.08 per coin. Followers of technical analysis observed the “inverted cup and handle” pattern and predicted the future continuation of growth.
CatCoin Trading Tactics:
You can make a profit on cryptocurrency in traditional ways and by providing passive income with the help of staking.
Investments
You can profit from this promising token by holding the coin in your account. Interest from large corporations in the technology, as well as the plans of developers, may indicate the growth of the asset.
Before investing in a project, it is recommended to carefully analyze the dynamics of the market and the coin, read reviews of the VeChain crypto coin and read the forecasts.
Trading
Since the end of February 2021, the VET coin has shown significant volatility. If you successfully enter the trend and purchase a coin, you can earn on active trading. To do this, you need to track news channels and thematic communities.
The most important thing is to correctly evaluate and choose the right time to buy. It is not worth buying an asset at the peak of its value.
Staking
Another way of passive income is available to token owners. As of June 2021, you can get 5.47% fixed staking on Binance. The principle is based on freezing the pool of coins for the operation of the blockchain and the development of the network.
Staking is supported by many crypto exchanges, but the best conditions are often offered by Binance.
VeChain Fundamentals: Key Factors
With the advent of QR codes, people’s lives have become much easier, as it has become much easier for manufacturers and suppliers to record and deliver products, and consumers have the opportunity to instantly find out information about goods by scanning QR codes.
Also, this technology is used in many other areas of human activity, for example, when paying for goods and services through mobile devices, as it allows you to store important information in encrypted form.
In this regard, developers from China, led by the former Louis Vuitton IT engineer Sunny Lu, decided to create a global crypto platform called VeChain to digitize any materials and things with all information stored in an immutable blockchain.
The VeChain cryptocurrency is not suitable for short-term investments and trading, since the liquidity of this asset increases only in the event of major updates, and there are still a lot of them planned, and it will take at least a year to fully launch this cryptosystem.
However, given the plans of the developers, we can safely assume that if successful, the price of VET crypto coins can rise tens and hundreds of times, as it was at the beginning of the year, so now it is advisable to buy these coins on crypto exchanges as part of your long-term investment portfolio.
FAQ
What’s the future of VeChain?
The platform is able to solve actual problems of our time and protect consumers and suppliers from fraud and problems in logistics. The project is successfully coping with its tasks, continuing to actively conclude contracts with global companies in the field of cargo transportation, automotive, and retail. VeChain is the kind of crypto project behind which there is a holistic idea and a worthy implementation.
Is VeChain a decentralized currency?
The coin cannot be called independent. Decisions are made automatically by 2/3 votes of masternode owners. The number of validators is limited. Therefore, there is a possibility of seizing control over the voting machines and making decisions that can only be beneficial to the initiators.
What is the best way to make money with VET?
Those who want to make a profit should limit themselves to long-term investments in the hope of strengthening the position of this cryptocurrency in the future.
How fast can you earn with VeChain?
The basis of the profitability of any cryptocurrency is the trust of users. The digital market is still in its infancy. It can be expected that in 5–10 years when most of the population will know about the existence of such currencies, with the development of world trade and the involvement of an increasing number of manufacturers in the VET ecosystem, the price of the token will increase tenfold.
Why did the project refuse to be present on the Ethereum blockchain?
The developers were not satisfied with the functional restrictions that prevented the platform from developing.
