What is VeChain(VET)?

VeChain is a project that provides blockchain solutions to various companies. It allows companies to develop and run decentralized applications to ensure the quality and authenticity of their products. Therefore, VeChain‘s goal is to ensure better electronic consensus involving enterprises by providing them with new tools for efficient data transfer and supply chain management. This fact helps eliminate fakes and counterfeit products. Let’s take a closer look at what VeChain is and how it works.

What is VeChain?

VeChain is a blockchain-based governance platform. It digitizes real people, products, or events by linking the API to the application layer of the system, connecting the blockchain with real information. The project focuses on supply chain management and combating the counterfeiting of luxury goods by recording components in a tamper-proof distributed ledger. 

VeChain is based on smart contracts focused on real production operations.  Thus, VeChain is creating a completely new and fair business model that provides reliable services to all customers and companies.

History of creation and team

Work on the VeChain project started in 2015, and the official release came in June 2016. The creator of VeChain is Sunny Lu, who previously served as CIO of Louis Vuitton China. Sunny Lu is well-known in the cryptocurrency industry, owing largely to bringing attention to the ability of blockchain technology to solve the problem of transparency.

The second co-founder of VeChain is Jay Zhang. He leads the global corporate structure, management, and finance of the project. Zhang previously worked for companies such as Deloitte and PriceWaterhouseCoopers in finance and risk management.

VeChain was originally aimed at the development of the logistics supply chain, but over time it has evolved into a full-fledged platform for dApps (decentralized applications). Nowadays, VeChain is one of the oldest blockchain platforms providing logistics services.

How does VeChain (VET) work?

VeChain runs on its own public blockchain that is called  VeChainThor. 

The VeChainThor blockchain operates like other blockchain platforms that focus on business. Companies use VeChain‘s full-featured Blockchain-as-a-Service (BaaS) product referred to as ToolChain to build their blockchain solutions. VeChainThor also supports smart contracts.

Each transaction on the VeChainThor blockchain can perform multiple tasks. In addition, VeChain’s users do not need to hold a cryptocurrency to complete transactions. It is held by the owners of the application to make the user experience even more convenient.

The VeChainThor blockchain utilizes Proof of Authority (PoA) consensus which transfers the power to certain nodes on the blockchain to validate transactions. This means that it only transmits transaction blocks via governance masternodes, which must hold at least 25,000,000 VET.

What are VET and VTHO?

VET and VTHO are the own tokens of VeChain.

VET (VeChain Token) is intended for financial transactions on the VeChainThor blockchain as well as for market speculation.

VTHO (VeThor Token) is an “energy token” that is designed to carry out transactions on the VeChainThor blockchain. VET holders can create VTHO for utilization on the VeChainThor blockchain.

How to store VeChain (VET)?

You can store VET and VTHO, as well as several other crypto assets, in the official VeChainThor wallet on iOS or Android. The company also offers a VeChain Sync desktop wallet that can be used with Ledger for cold storage.

In addition, VET and VTHO can be stored in the following crypto wallets: Trust Wallet, Ellipal, Atomic Wallet, MySafeWallet, Cobo Wallet, Arkane Wallet, Guarda Wallet, and Exodus.

In what areas can VeChain(VET) be used?

Let’s take a look at some of the most common use cases for VeChain technology. Although, this is not a list. More examples can be found in the Dapps VechainWorld library.

Food safety

Blockchain-based solutions can result in a more transparent food economy worldwide.

Internet of Things (IoT) devices with VeChain support can be deployed across the supply chain – products, vehicles, etc. Then, the environment and location data from these devices are downloaded, verified, and stored in a decentralized manner on the VeChainThor blockchain. Similar solutions are already in place at several companies, including Shenzhen Yuhongtai Foods.

Fight against counterfeit products

Counterfeits are a major problem in the luxury goods market. Owners can be assured of the authenticity of items due to using the encrypted chip along with the chip to register and track logistics, warehousing, maintenance, and resale. This method has already been used to track expensive wines for Shanghai Waigaoqiao Direct Imported Goods, as well as parts of Renault cars as part of testing.

Health records

Existing health records systems are outdated. Instead of using inefficient and insecure systems for recording lab results, this data can be stored on the blockchain and only patients and authorized individuals can access it. 

Tracking carbon emissions

This solution allows customers to participate in reducing carbon emissions into the atmosphere. 

If smart devices such as cars or appliances detect that the owner emits less carbon, they can be rewarded for use in energy services. BYD, a Chinese electric vehicle brand, is already using this Vechain solution.

What big companies use VeChain?

Here is a list of companies that have already used the  VeChain solution: Bayer China, Shanghai Gas, BYD Auto, PICC, H&M Group, BMW, LVMH, Walmart China, FoodGates, Reebonz, etc.

Conclusion

VeChain is a highly ambitious company with an already strong presence in the Chinese market.

Due to the projects for large companies that have switched to the VeChainThor blockchain, the company has proven the effectiveness of its products in creating blockchain applications.