VeChain provides blockchain solutions for businesses globally. With many existing blockchain applications in the industry from supply chain management to anti-counterfeiting and carbon credit, their system is proven in the real world. VET is the coin that underpins VeChain, where VTHO is the gas token used for transactions on the VeChainThor blockchain (just like Ethereum’s gas).
VeChain is a company founded in 2015 that provides blockchain-based solutions to businesses by leveraging the power of its VeChainThor blockchain. The company has deep relationships with Chinese industry and government and seeks to strengthen these relationships further.
What is VeChain (VET)?
Introduced in 2015 as part of Shanghai-based Blockchain-as-a-Service (BaaS) company, BitSE, VeChain is a distributed business ecosystem leveraging blockchain technology. It is specifically designed to be used by both small and large businesses. VeChain’s public blockchain is called VeChainThor.
The VeChain Foundation was established in Singapore and oversees the development, governance and progress of the VeChain ecosystem.
VeChain is considered by some to be a mature company, with many real-world business applications already existing on the VeChainThor blockchain. As VeChain Whitepaper 2.0 states, “these solutions are not just theories, they are solutions that have been tested and discussed with over 700 enterprises and deployed to over 100 asset-level enterprises.
VeChain’s parent agency has been granted a 5-star rated Blockchain Service Certificate from TÜV Saarland, a European certification body.
How VeChain (VET) Works
The VeChainThor blockchain works like other business-use blockchain platforms. Businesses use VeChain’s fully functional Blockchain-as-a-Service (BaaS) product called ToolChain to build their blockchain-based solutions. In addition, VeChainThor supports smart contracts.
Single transactions on the VeChainThor blockchain can perform multiple tasks. In addition, VeChain app users do not need to hold any cryptocurrency to make transactions. Instead, this can be done by the application owner, which can make the user experience more convenient for the average user.
The VeChainThor blockchain uses Proof of Authority (PoA) consensus, which delegates authority to certain nodes in the VeChainThor blockchain to confirm transactions. This means it only transfers blocks of transactions through Authority Masternodes which need to hold at least 25,000,000 VET.
What is VET and VTHO?
VeChain has two separate tokens: VTHO and VET.
VET (VeChain Token) is used for financial transactions on the VeChainThor blockchain and market speculation.
VTHO (VeThor Token) is an “energy token” used to perform transactions on VeChainThor. For use on the VeChainThor blockchain, VET holders can create VTHO.
Why VeChain (VET) is important
VeChain is notable for having deep ties to China – a key blockchain market that is difficult to penetrate for non-Chinese companies. The company is headquartered in Singapore, while having an office in Shanghai, with capital from Chinese VC firm FutureCap and Chinese CEO, Sunny Lu. The project also has partnerships with a number of Chinese government agencies, including the China Veterinary and Food Safety Alliance.
The organization also has many business partners with solutions that already exist in the real world, on the VeChainThor blockchain. Partners that already have a VeChain solution include PriceWaterhouseCoopers (PwC), Walmart China, Renault and Shanghai Waigaoqiao Direct Imported Goods.
VeChain (VET) use cases
Let’s go over some of the most important use cases of VeChain technology, but this is by no means an extensive list. For more you can check out VechainWorld library of Dapps.
Blockchain-based solutions could lead to a more transparent global food economy.
VeChain-enabled Internet of Things (IoT) devices can be deployed across the entire supply chain, including across products, vehicles, and warehouses. Location and environment-based data from these devices can then be uploaded, verified, and stored in a decentralized, tamper-proof way on the VeChainThor blockchain. Solutions like these are already in effect for a number of companies, including Shenzhen Yuhongtai Foods.
Counterfeiting in the luxury goods market is a big problem. By attaching an encrypted chip and then using the chip to record and track logistics, warehousing, maintenance, and resale, owners can be assured of authenticity. This was used to trace luxury wines for Shanghai Waigaoqiao Direct Imports and during testing of Renault luxury car parts.
The healthcare record system is notoriously antiquated. Instead of using inefficient and insecure recording systems for lab results, this valuable data can be stored on the blockchain, accessible only to the patient and other authorized parties. having permission to access. The VeChain-based E-HCert application will be rolled out to patients of both Cyprus Mediterranean Hospital and Aretaeio Hospital in 2021.
Tracking carbon emissions
By promoting carbon reduction by tracking carbon emissions, this solution allows consumers to participate in a carbon-saving scheme.
When smart devices, such as cars or appliances, show that a consumer is generating less carbon, they can receive credits to use for energy services. BYD, a Chinese electric vehicle brand, used Vechain solution.
How to store VeChain (VET)
You can store VET and VTHO, as well as several other crypto assets in the official VeChainThor lightweight wallet on iOS or Android. The official desktop wallet is VeChain Sync, which can also be used with Ledger to store cold wallets.
Third-party wallets that can store VET and VTHO include Trust Wallet, Cobo Wallet, Atomic Wallet, Arkane Wallet, MySafeWallet, Guarda Wallet, Ellipal, and Exodus.
VeChain already has a strong and ambitious presence in the Chinese market.
With proven projects from big-name businesses already running on the VeChainThor blockchain, the company has shown that it can help businesses create useful blockchain applications.