VeChain (VET): What is it?
VeChain VET by Crypto Nation – July 12, 2021
By Crypto Nation – July 12, 2021
VeChain crypto card summary:
VeChain fundamental data
- Name: VeChain
- Symbol: VET
- Type: Blockchain, Artificial Intelligence, IoT, Smart Contract
- Consensus: Proof of Authority (PoA)
- Year of creation: 2015
- Founders: Sunny Lu and Jay Zhang
- Official website: vechain.org
- Mainnet: Yes – https://explore.vechain.org/
- Whitepaper: https://whitepaper.io/coin/vechain
- Code: https://github.com/vechain
- Twitter: @vechainofficial
VeChain market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the VeChain project?
VeChain is a platform based on its own blockchain, the VeChainThor, which aims to create an ecosystem capable of responding to traceability needs and the major problems of supply chain management. This system makes it possible, for example, to monitor goods in real time throughout their life cycle.
Information such as quality, authenticity or means of transport can be obtained. Each product can have its digital identity, sensors can transmit information live on the blockchain.
All this with the aim, for example, of protecting brands, ensuring food safety or dealing with counterfeits.
In addition, the objective is also to reduce logistics costs, while giving more power to users and consumers.
Origin of the project
The VeChain project was conceived in 2015, then launched in June 2016, by Sunny Lu (former CIO of Louis Vuitton in China) and Jay Zhang (had worked for Deloitte) who are both co-founders. The team is one of the most experienced and skilled in the crypto ecosystem.
Initially on the Ethereum blockchain with the VEN token, the project migrated to its own blockchain, VeChain Thor, in June 2018. The VEN token then becomes the VET.
20 million dollars were raised following the ICO.
What is its use?
We must distinguish two different tokens that are used within this platform:
- VET is the cryptocurrency used as a means of payment within the VeChain ecosystem. It can be used by companies to manage their business activities on the VeChainThor. Those who have the most VET, for example, have priority and have more rights.
- The VTHO is the token used to pay all fees generated on the VeChainThor blockchain. Whenever data is added to the blockchain through a financial or data transaction, it requires some computing power. The VTHO token is used to cover its computational costs, in the form of “gas”, for all transactions made on the VeChainThor blockchain. The cost of these fees varies depending on the data and the size of the transaction to be processed.
It is possible to stake VET, in order to receive interest in VTHO. The rate varies from 1 to 2% per year.
Management of the economy (on 12/07/2021)
The number of VETs is limited to precisely 86,712,634,466 units. There are approximately 65 billion of them in circulation to date.
Regarding VTHOs, they are not limited. Currently there are about 38 billion in circulation. During each transaction, 70% of the fees paid in VTHO are destroyed. The remaining 30% is given as a reward to the authority node which verified the block corresponding to the transaction.
The initial distribution of VET proceeded as follows:
- 41% on initial sale to the general public.
- 23% for professional investors (companies).
- 12% for the technical development of the project and ongoing operations.
- 10% for business related to development.
- 9% for private investors.
- 5% for founding members and the development team.
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your VeChains (VET) via various solutions:
- Atomic Wallet, a very complete and secure software wallet, in which you can directly store your VET.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
VeChain is a niche project in the cryptosphere. It is one of the crypto projects with already a long and strong experience and it has stood out from the start.
Although it is not completely decentralized, VeChain seduces by its concrete uses, which respond to issues that are very present in our daily lives. It is supported by a very strong community, which believes in the values of this project and which has understood the interest of such a concept for the future.
Blockchains are democratizing and there will inevitably be a place for the VeChainThor in our system of tomorrow. VeChain currently has no real competition, it completely dominates its segment.
This project opens up a multitude of possibilities, while having a very wide field of action. Whether in food, textiles, automotive, luxury, or even in the medical field, VeChain is able to provide its wide range of services, including traceability, everywhere.