VeChain (VET) is a cryptocurrency and blockchain platform that was designed for business applications. It is important to remember that before being tokens, they are software designed for a purpose.
Therefore, whenever you want to dive deeper into a cryptocurrency you’re considering purchasing, it is necessary to go over the system and how the ecosystem or network works.
That being said, the Blockchain is one thing, but cryptocurrency VET can be used in more than operations inside the network.
We know you’re probably here because VET seems like a good option based on today’s market cap. However, is it worth the investment in the long run based on what you need and are looking for?
Here, we will be going over VeChain’s history and how it can benefit your next investment or your future in the cryptocurrency market.
What Is VeChain (VET)?
First, let’s start with the network or software itself.
VeChain software is designed to encourage a network to run a platform that allows businesses to create and manage decentralized apps (dApps).
The main mission of the platform is to facilitate better digital collaboration between businesses through the provision of new tools that enable efficient data transfer and supply chain management.
VeChain was originally a supply chain management solution. In 2018, the VeChain protocol was renamed VeChain Thor, expanding the range of dApps to offer more data solutions.
The following corporations have begun to use the VeChain Blockchain in order to follow and set new parameters:
- BMW uses VeChain for preventing odometer fraud in automobiles
- LVMH uses VeChain to track luxury-leather goods.
- Walmart uses VeChain for food traceability.
Basically, VeChain’s goal is to build a trust-free, distributed business ecosystem platform to enable transparent information flow and efficient collaboration as well as high-speed transfer.
Multiple stakeholders are responsible for dividing traditional supply chain data to support business processes and information flow. VTO claims that its platform uses Blockchain technology to give all stakeholders information about products and business processes.
This creates greater transparency in the market. But how do they do it?
Managers assign a product’s unique QR code and a VeChain ID to it. The VeChainID is kept on VeChainThor and uploaded to the Blockchain by the operation staff. Through smart chips, RFID tags, and sensors, real-time information about the product is continuously uploaded to the Blockchain.
The consumer can scan the tags to get information from VeChainThor as soon as the product reaches them.
Now, we will be diving into its specific use and how the system was built later since; before that, we need to mention that VeChain has two native cryptocurrencies that are central to its operations.
VET coin is for voting on protocol changes and VTHO for the execution of cryptocurrency transactions.
How does VeChain work in Specific?
Let’s go back to what we know: VeChain aims to give any company the ability to launch new kinds of dApps.
To make this possible, the VeChain team created a component called VeChain ToolChain to make it easier to create them. This is why we need to go over the parts of the system and kit to set the dApps:
Proof of authority
VeChain Thor uses a consensus mechanism called proof of authority (PoA) to regulate how transactions are verified between users and added to VeChain’s public ledger.
Authority Masternodes are users who add transactions to the Blockchain and verify them. To become one, you must stake at least 25 million VETs and provide identifying information to VeChain Foundation.
Although a PoA system can speed up the processing of large volumes of cryptocurrency exchanges, it has one drawback: It relies on a central authority that checks and authorizes users to take part in processing transactions.
VeChain has made it clear that they are working to improve their PoA in order to create more blocks randomly and evenly.
Two Token Design
VeChain relies on two native tokens to make its software work: VET to store and transfer value and VTHO to perform transactions on its Blockchain, as previously mentioned.
This design isolates the volatility in the VET coin’s price from the cost computations on the network. Applications on VeChain can charge stable fees since the VTHO supply is adjustable to maintain a stable price.
Similar to the Ethereum Blockchain using ETH and gas, miners receive VTHO fees for processing computations by the network. A given program will need more VTHO the more complicated it is.
Finally, VET coin-staking nodes gain the ability to vote on network upgrades and are awarded VTHO for each block.
Its History: When Was VeChain Founded?
Diving a bit into its history, VeChain’s blockchain development began in 2015 with a modified fork of Ethereum.
It focuses on the Internet of Things (IoT) and supply chain management. VeChain’s multi-purpose functionality has been expanded to include customizable support for enterprise use.
Considering its development in 2015, VeChain is one of the first blockchain companies worldwide.
Besides the previous mention about how it works, here we can dive into the people behind it.
Sunny Lu, a former chief information officer at Louis Vuitton China, founded it in 2015. It is now a platform that uses blockchain technology to improve supply chain management and business processes.
Initially, the VEN token worked on the Ethereum Blockchain. VeChain moved to its own Blockchain in 2018 and was rebranded. The VeChainThor (VET blockchain) was created as part of the rebrand.
In its whitepaper, VeChain outlines the goals for the platform’s blockchain technology. It started out intending to disrupt the supply chain by making data transparent and actionable.
It plans to also be a leader dApps, initial coins offerings (ICOs), made using VeChain and an Internet of Things intermediary.
VeChain has formed strategic partnerships with many companies over the years to achieve this goal. Among them is an agreement with PricewaterhouseCoopers (PwC) for VeChain’s blockchain-powered solutions to be used by the accounting firm’s client base to improve product verification and traceability.
VeChain also has partnered with Renault. Along with Microsoft and Viseo, this partnership created a digital maintenance book for cars that can’t be altered.
It is also the government technology Partner for Gui’an. The Central Chinese Government established this economic development zone.
However, no more details have been provided about the company and the section behind the founding. Instead, only updates on the network and digital currency blog are provided every month or periodically.
VeChain (VET) Supply & Price
Although the network works with two tokens, as previously mentioned, we have been focusing on VET alone since it helps users to have voted on the Blockchain.
Now, how much is available and is it expensive to buy?
Thanks to the system set by the founders and the entire ecosystem, VET’s price is stable, and despite its increase in the latter days, you will be surprised it stands at $0.13 today.
The price hasn’t gone over $0.14 since the token and network release, and you can expect to have enough access to it due to its price.
When it comes to the cryptocurrency market cap, the price is set at $8.7 billion, and the circulating supply and the maximum one are unknown.
However, the volume of the token is at 525 million, and it continues growing.
The start date of the token itself was on August 22, 2017, and you can expect it to continue leading part of the market.
One of the currency’s strengths is definitely the price and the fact that the currency doesn’t have a limit supply set yet. Thus, you can purchase as many as you can and have control over the network with your voting power.
Should you buy it? That’s the question.
VeChain and its native token have proven to be more useful for businesses than actual users trying to invest in cryptocurrencies. However, it doesn’t mean VET doesn’t have value.
You can consider it a long-time investment and have control, as mentioned before, in how the Blockchain continues to be shaped.
Is It Worth Investing in Cryptocurrency Overall?
It’s not a bad idea to invest in cryptocurrency. But if you are going to dive into this world, keep in mind that this market can be volatile and difficult to keep up with as a result. You could lose money, but you could also be making it.
Even though we have explained VeChain and consider it a good option, we would bet on other options depending on your case. Don’t get us wrong; you can choose to just invest in it, but you need to be able to see how great it is each day.
You can certainly start small and see what happens, but how long will this work? Fortunately, VeChain price isn’t high, and you can test how it works for you.
However, although we have invested in currencies, we feel local lead generation is more cost-effective and profitable than this volatile investment method. Because, yes, price volatility will be your best friend.
With lead gen, you don’t need to take too many risks. You aren’t betting on a market that is questionable every day, don’t have to worry about network security, or think about other virtual currencies to invest in.
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