What is Vechain? Is Vet VeChain a Good Investment?

The article below was published by the azc.news team to provide the most necessary and useful information for everyone about the VeChain (VET) cryptocurrency.

What Is Vechain? Is Vet Vechain A Good Investment?_65b97c9f7eb54.webp

What is Vechain (VET)?

VeChain, also known as VechainThor (symbol: VET), is the electronic currency (Native Currency) of the VechainThor Blockchain platform. Initially, Vechain (VET) was built on Ethereum’s ERC-20 standard. It was not until July 30, 2018 that Vechain (VET) was swapped to run on VechainThor’s Blockchain platform after they successfully launched the Mainnet.

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https://www.vechain.org/

What is VeThor Token (VTHO)?

After successful Mainnet deployment, Blockchain VechainThor added another token called Vethor Token (VTHO), which exists simultaneously with the VET coin. VeThor (VTHO) is used as a “gas” fee in the VechainThor Blockchain network. You can simply understand that VTHO is equivalent to GAS in the NEO Blockchain.

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Initial Features of Vechain (VET)

The VeChain platform is used to track the identity or VID (VeChain Identity) of products through the use of QR codes, RFID tags, or Near Field Communication (NFC) tags. VID technology enables the integration of the real-world business world into VeChain’s platform. Consumers can track a product from its origin, through its transit, and through to final delivery. If there is any issue regarding the quality of the product that could harm the consumer, it will be detected and the authenticity of the product can be determined at any stage.

Vechain’s initial platform includes:

  • Applied smart contracts

  • Private key management

  • Payment services

  • Wallet development

VeChain Blockchain with PoA 2.0

Initially, VeChain used the Proof-of-Authority 1.0 consensus mechanism, an algorithm that required authorized network nodes to participate in the blockchain consensus process. Although this algorithm has excellent performance in terms of transaction processing and throughput, it also has limited disadvantages in handling error transactions. Since the basis of Proof-of-Authority in use is the Nakamoto consensus mechanism, it is not immune to possible attacks from foreign parties.

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Currently, VeChainThor uses Proof of Authority 2.0 mechanism. This new structure requires each block to be formed with the participation of multiple nodes from the delegated pool, along with selected block producers. The node selection process is done randomly through the VRF hash function under the condition that a key is accessed.

It is easy to see that this is a block creation structure through multi-signature confirmation of network nodes, the model that many consensus blockchains are currently aiming for and using, such as Cosmos, Polkadot, Near Protocol , and in the future Ethereum 2.0.

With the PoA 2.0 consensus structure, the project can significantly improve the network:

  • Absolute accuracy (or security) on blocks and transactions.

  • Greatly reduces the risk of temporary platform disruption, leading to better stability of the blockchain service.

  • Acceleration – eventual probability convergence, leading to faster transaction confirmations for applications.

Related: Which is Better Cosmos or Polkadot?

VeChain platform structure

  • Application and service layer: Application and data service layer. This class is for developing smart contracts and applications.

  • Infrastructure layer: Is the foundation structural layer, especially the Tool Chain. Will detail below.

  • VeChain Blockchain: network linking VeChain’s network nodes

  • IoT layer: This layer is an IoT system including devices, database infrastructure, data analysis and processing units serving the Internet of Things (IoT)

what is vechain is vet vechain a good investment 65b97c9f89744

VeChain’s Blockchain-as-a-Service (BaaS) platform is called ToolChain. Simple to understand, ToolChain is a comprehensive blockchain platform capable of providing many services, including product lifecycle management, supply chain process control, data storage, providing data certification and process certification. With ToolChain, any business, no matter how large or small, can use blockchain technology to increase brand awareness and value, as well as expand into new business models.

Tokenomics VET

Basic information about Vechain coin (VET)

  • Ticker: VET.

  • Blockchain: VechainThor.

  • Token Standard: VIP180, VIP181.

  • Token type: Coin.

  • Avg. Transaction time: 10,000 TPS.

  • Avg. Block time: 10 seconds.

  • Total Supply: 86,712,634,466 VET.

  • Circulating Supply: 55,454,734,800 VET.

What is Vechain (VET) used for?

Vechain (VET) will be used for 3 main purposes in VechainThor:

  • VET is a smart payment method (Smart Payment Currency): VET will be used as a smart currency to perform smart payment transactions on the VechainThor platform.

  • Using VET in business activities on VechainThor Blockchain: Businesses can use VET to operate their business activities on our Blockchain platform VechainThor.

  • Enterprise’s benefits are based on the amount of VET held: Businesses will have increased benefits and priorities on VechainThor Blockchain depending on the amount of VET they hold. This may include participation in decision-making and network management.

VeThor Token (VTHO) will play a supporting role in making payment transactions and implementing Smart Contracts on VechainThor’s Blockchain network.

Token Allocation

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The total supply of Vechain (VET) will be divided according to the following ratio:

  • Seed Round: 9.7%

  • Private Round: 9%

  • Public Round: 27.7%

  • Team: 5%

  • Operations: 22%

  • Burn: 26.6%

Vesting Schedule

All tokens have been completely unlocked.

Vechain development team

Vechain is developed by a team of experts from different industries including the fields of blockchain technology, business and finance. The main members of the group include:

  • Sunny Lu: Chief Executive Officer (CEO), he was previously a co-founder of BitSE (a Chinese software company that created other famous projects such as QTUM), and before that Sunny was CTO and CIO (Chief Technology Officer) of a famous fashion company Louis Vuitton in China.

  • Richard Fu: Chief Marketing Officer (CMO)

  • Chin Qian: Chief Sales Officer (CSO)

  • Jay Zhang: Chief Financial Officer (CFO)

  • Scott Brisbin: General Counsel

  • Jerome Grilleres: Business Development

The future of Vechain, should you invest in VET coin?

what is vechain is vet vechain a good investment 65b97c9f8d899

VeChain is one of the popular blockchain projects created on the Ethereum platform and has achieved success in providing technology solutions applied directly to businesses. In contrast to many other blockchain projects, VeChain does not focus primarily on developing DeFi features but instead focuses its attention on technology solutions for businesses.

Initially, the project focused on Internet of Things (IoT) technology and supply chain management. However, over time, VeChain has undergone long-term evolution and expanded its purpose to support a variety of enterprise uses. This project has transformed to be able to provide a scalable solution, with fast transaction speeds and very low transaction costs.

An important part of VeChain’s success is the network of partners and customers that the project has built. The partners and customers currently using VeChain’s technology come from global corporations, with strong support from the Chinese market. This has provided VeChain with a large market to deploy its products. The project’s success provides an opportunity to compare with similar platforms.

Conclude

Through the above overview article about the Vechain project, azc.news hopes readers will grasp the necessary information about this project to make their own investment decisions. Wishing you a successful investment!

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