VeChain (VET) is a blockchain platform designed to support businesses with supply chain management functions. VeChain leverages blockchain technology to address supply chain problems, challenges, and opportunities faced by many business owners in a transaction process.
VeChain aims to simplify, streamline, improve, and support these critical functions to make international commerce more transparent, fair, and efficient. Its main goal is to found a sustainable and scalable business blockchain ecosystem.
VeChain Coin lives and flows through the VeChainThor public blockchain ecosystem.
As a blockchain platform with unique technical and economic characteristics and qualities, VET has several advantages.
It is divided into three sections: the real-time supply chain tech, cryptocurrency, and the VeChain platform. The developers of VeChain have also used distributed ledger technology (DLT) to improve product life cycle management and supply chain protocols. VeChain provides businesses with the opportunity to track a large amount of data and can be bought using trading pairs.
VeChain makes use of two tokens: VeChain token (VET) as a value layer and VeChain Thor Energy (VTHO) as a smart contract layer.
VeChain Founders
VeChain was founded in 2015 by Sunny Lu. Lu is a career IT executive with vast experience in digital and information technology systems. Lue formerly served as CIO (chief information officer) for Louis Vuitton China, the China division of the iconic French global fashion brand.
Development, marketing, and partnerships for VET's supply chain management blockchain are overseen and managed by the VeChain Foundation.
The co-founder of VeChain, Jay Zhang, is the foundation's international corporate structure, financial management, and governance director. Zhang brings a world-class international business resume to the foundation. Previously, he has worked for Deloitte and PriceWaterhouseCoopers (PWC), two world-class accounting and business consulting firms. His position was in finance and risk management.
Lu has become renowned within the cryptocurrency industry because the VeChain blockchain is one of the world's oldest continuously operating cryptocurrencies.
Initially, the VEN token functioned on the Ethereum blockchain. VeChain transitioned onto its own blockchain and rebranded itself in 2018. As part of the rebrand, the VEN blockchain became the VeChainThor (VET) blockchain.
How Does VET Work
The core advantage of VeChain is Radio Frequency Identification (RFID). It impacts the supply chain industry by enabling VeChain to track essential data while it's being transferred. Factors such as temperature, location, and shipment movements are broadcast across the VeChain blockchain.
Another advantage of VeChain is its use of proprietary solutions like ToolChain, My Story™, and the VeChainThor blockchain, enhanced by the IoT (Internet of Things) technology. IoT and DLT technologies allow a large chunk of data to move from one user to another. VeChain uses IoT to comprise all of the smart device networks used globally.
VeChain also uses the dual-token architecture that works by turning tokens into digital cash when VeChain is purchased. This cash can then be spent on the VeChain platform or for paying for network services. However, users need to have a number or the VeChain token to successfully track their supply chain operations.
Token holders speculating on the VET price are incentivized to stake in exchange for VET rewards, supplying liquidity to the network.
The VeChain price is affected by the overall health and business of the network, the general momentum of cryptocurrency market prices, and strategic global macro factors. VET price has continued to rise and fall strongly correlated to Bitcoin (BTC) and other major crypto prices.
According to CoinMarketCap, VeChain is currently ranked 22nd among cryptos, with a market capitalization of $5.9 million. The current circulating supply of VET is just over 64 billion, however, meaning that the current number of VET-USD tokens only amounts to about 74% of the total potential supply.
VeChain Network Security
VeChain blockchain uses Proof of Authority (PoA) as a consensus protocol. The PoA consensus algorithm is a reputation-based consensus algorithm that introduces a practical and efficient solution for blockchain networks. PoA blockchains are secured by arbitrarily selected validating nodes, qualified to participate, and incentivized to follow network protocols by locking up some VET tokens in a one-way function.
The core advantages of this PoA system are high scalability, privacy protection, and an effective and reasonable solution for business applications like supply chains.
