VeChain

What is VeChain (VET)?

VET is the native token of VeChain, also known as VeChain Thor, which is a public blockchain. It derives its value from the initiatives taken by blockchain participants. To solve pressing economic problems. If you want to know the current price of VeChain, take a look at the VET price chart above.

VeChain crypto project strives support the fourth industrial revolution by creating an ecosystem that solves serious data problems for various international industries (medicine, energy, food and others).

VeChain is trying to achieve this by harnessing the potential of trustless data, distributed governance and Internet of Things technologies (RFID and NFC chips, QR codes, environmental data sensors, etc.).

The VeChain network is known for its efficiency, high security and easy data tracking thanks to transparent technology without a single point of control it hires. In addition, using reliable automation through smart contractsVeChain manages to reduce transaction costs.

VeChain benefits from features such as a dual token system, innovative protocols, and a BaaS (Blockchain as a Service) platform called ToolChain.

Pay attention to dual token system, VeChain uses VET and VTHO tokens. The dual token method is used to prevent fee changes and network congestion. This is discussed in more detail below.

Moving further, one of the innovative protocols used by the VeChain crypto project is delegation to the TX commission. This is a system that allows ordinary people to use decentralized applications (dApps) without having to buy cryptocurrency. They simply pay direct transaction fees resulting from interactions with decentralized applications.

Talking about ToolChain, it is great for businesses with no blockchain experience as it simplifies the integration of IoT and blockchain. ToolChain manages to achieve this using data BaaS levelincluding all necessary components.

Finally, there is one more feature worth mentioning – VeChain IDs. These are unique identifiers that are assigned to each product and are used to track its stages in the supply chain.

History of VeChain

The VeChain network was developed Sunny Lu and Jay Zhang. Prior to this project, Lu was the Chief Information Officer and Chief Operating Officer of Louis Vuitton in China. As for Jay Zhang, before he co-founded VeChain in 2015, he spent 15 years as a senior finance and risk manager at PwC China and Deloitte UK.

In total, VeChain has more than 90 people working on the development of the network. Gu Jianliang, who has extensive experience in the Internet of Things field, is the company’s CTO.

Moreover, in 2017 Vecheina Foundation was developed. It is a non-profit organization responsible for network construction, technology research, development and management. It is also critical for business expansion by facilitating and maintaining partnerships with organizations that may be interested in offering blockchain technology as a service.

It’s important to note that VeChain has not always been a public blockchain. In 2015, after its launch, VeChain was a private consortium network, a semi-decentralized network that is not accessible to everyone. Additionally, its native token at the time was VEN (ERC-20 token). However, in 2018, VeChain released a public blockchain called Vechain Tor. At the same time, the VET token was released. VEN token owners had to exchange VET tokens at a rate of 1:100. After everyone did this, the VEN tokens were deactivated.

VeChain Consensus Mechanism

VeChain uses Proof of Authority (PoA) a consensus mechanism known mainly for its low computational power consumption. It uses reputable validators to create blocks that provide the computing capabilities of the network. Therefore, it is especially attractive to businesses that require guarantees of the reliability and integrity of the validators running the network.

In addition, using Byzantine fault tolerance (BFT) algorithm Since identity and reputation are forms of stake, PoA allows for faster transactions.

There are 101 reputable validators in total. (Authoritative nodes) create new blocks on the blockchain using VeChain Thor’s PoA implementation. To become an Authoritative Node, a user must:

• Submit a formal application
• Complete full KYC
• Have dedicated equipment
• Have at least 250 million VET
• Be approved by the VeChain Foundation

VET VERSUS WTO

VET is the main network token and it serves as a means of transferring value when creating VTHO tokens. VTHO is used to cover gas charges., and VET is a token used for transactions and other operations. Adjusting certain factors, such as the amount of VTHO required to process a transaction or the rate at which VTHO is created, will ensure that network usage fees remain stable.

The maximum supply of VET is 86,712,634,466 tokens. On the other hand, VTHO is created automatically based on VET assets.

In other words, anyone who has VET coins receives VTHO. Additionally, they can use the VeChainThor network for free since the transactions they make do not take up more VTHO than they produce.

However, please note that VTHO can also be traded and sold. This allows users to obtain more VTHO to perform more complex tasks such as running blockchain applications.

In addition, VET holders automatically generate a small passive income in VTHO. However, most VTHO tokens used in VET payments are burned.

If you are interested how to buy VET tokens, it’s pretty easy. All you have to do is choose cryptocurrency exchange you want to use and then either purchase it using decree (if the exchange allows it) or trade using other crypto assets.

If you are looking to buy VET coins, check out the VeChain price chart above. This is critical because the price of VET is highly variable. This is an inevitable characteristic of crypto assets due to the volatility of the entire crypto market. Thus, the same factors that influence general market prices also influence the price of VET.

So it’s beautiful It’s hard to say whether VET is a good investment, just like it’s difficult to say this about any other crypto asset. This is true because there are always so many different factors that can influence the answer to the question “Is this a good investment?”