What Is VeChain (VeChainThor)?

VeChain is a blockchain ecosystem designed to enhance supply chain management andꦚ business processes and serve as a platform for Web3 development.

The Vechain platform contains two distinct tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). The former is used to transfer value across VeChain's network, and the latter is used as energy or "gas" to pay for on-chain transactions.

History of VeChain (VeChainThor)

VeChain was founded in 2015 by Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China. It started as a 澳洲幸运5官方开奖结果体彩网:subsidiary of Bitse, one of China's largest blockchain comꦇpanies, and is among the few blockchains with a substantial customer base among established companies.

VeChain's goal is:

...to enable people to engage with sustainability every day. [VeChain] will do this by putting more power in their hands to make impactful, informed decisions that influence the fundamental environmental and societal factors underpinning our existence as humans, such as access to healthy food, clean water, and fresh air. With ever-evolving technologies like blockchain, [VeChain] will help people develop real, meaningful partnerships with organisations, governments, and enterprises.

Initially, VeChain targeted enterprises, attempting to disrupt the supply chain industry by making data actionable and transparent. It has since redirected its path to include more than an ecosystem for supply chains, and includes the ability for developers to create dApps, cryptocurrencies and tokens, mechanisms for the 澳洲幸运5官方开奖结果体彩网:Internet of Things (IoT), and targets peo💙ple and busine💎sses intent on creating a more sustainable global society and economy.

Partnerships

VeChain has inked strategic partnerships over the years with several companies to help achieve its goals. Among them is an agreement with PricewaterhouseCoopers (PwC) for VeChain's blockchain-powered solutions to be used by the accounting firm's client base to improve product verification and traceability.

VeChain has also partnered with Renault, Microsoft, and Viseo to create a digital car maintenance book that cannot be tampered with. It is the government Gui'an, an economic development zone for the Central Chinese Government.

VeChain also partnered with UFC to include near-field communication (NFC) devices in the sport's latest official boxing gloves. Chips in the gloves store a digital certificate that serves as a non-fungible token (NFT) stored on the VeChainThor blockchain. The tokens validate authenticity for fans who purchase the gloves as memorabilia and identifies the fighter who wore them and the fights they were used in.

VeChain's Blockchain Platform

Initially, the VEN token functioned on the Ethereum blockchain but transitioned to its own blockchain and rebranded itself in 2018. As♓ part of the rebrand, the VEN blockchain became the VeChainThor (VET) blockchain.

VeChainThor uses a proof-of-authority consensus algorithm it calls proof-of-authenticity. This method uses Authority Masternodes (AMs), which are chosen after a vetting process in which the hosters' identities and other information are verified for trustworthiness and a financial investment is staked.

Anonymous nodes are not allowed, and disclosure of identity is an essential prerequisite to becoming an Authority Master node. According to VeChain’s white paper, this system uses less power and𝓡 does not require a minimum number of validators to reach consensus.

Additional Nodes

In addition to AMs, other types of master 𝔉nodes exist on VeChain. These are the economic and X master nodes, which do not𝓰 produce blocks or ledger records but are used as a check on power.

Any user can become an economic node by meeting the required VET balance. Each 1 million📖 VET held by an economic master node gets a single on-chain governance vote.

X-nodes are only available to users who purchase VET on the secondary market. These nodes generate 0.000432 VTHO per VET staked. X-nodes also have on-chain voting rights.

VeChain Tokenomics

The VeChainThor blockchain platform has two tokens: VET and VTHO. VET is the VeChain token used to carry value or “smart money” from smart contracts. In other words, transactions on decentralized application🦋s occurring on VeChain’s blockchain will use ꦇVET. It is also available for purchase by the general public.

The VTHO token represents VeChainThor Energy (or VeThor Energy). It is used to pay for transactions on VeChainThor. The concept is similar to Ethereum’s ether in that dApp developers need to budget for token usage. Per VeChain’s white paper, the two-token system was devised for effective governance and to have a predictable economic model for decentralized application developers.

In its current form, Ethereum lacks such a model because the price of ether, its native gas token, is volatile. As such, developers have to estimate the amo🐽unt of ether required for a transaction, which is a challenge requiring constant adjustments. VeChain’s white paper outlines several technical enhancements its platform h🌃as made to overcome this problem.

For example, the VeChainThor blockchain allows Proof of Work (PoW) for every transaction. This means that the people conducting a transaction can select to mine more VTHO if their initial estimate was wrong or they want to pay a validator more to have their transaction included in a block (for faster confirmation).

VeChain Usage Examples

VeChain's platform can be used to track quality, authenticity, storage temperature, transportation medium, and last-mile delivery of a medicine pack or an alcohol bottle right from the manufacturing facility through to the final delivery to the end customer. To accomplish this goal, VeChain uses smart chips or 澳洲幸运5官方开奖结果体彩网:Radio Frequency Identification (RFID) tags and sensors that broadcast key information onto the blockchain network that can be accessed in 澳洲幸运5官方开奖结果体彩网:real-time by authorized stakeholders.

The application of sensors meaꩵns that all parameters related to the product can b𒉰e constantly monitored, and problems, if any, can be communicated back to the relevant stakeholders. Manufacturers and customers are informed if a drug packet is stored outside a prescribed temperature range, allowing for service improvements and better quality control.

In another example, the VeChain platform can enable automobile owners to own their data and use it to negotiate better terms and policies with their 澳洲幸运5官方开奖结果体彩网:insurance companies.

Additionally, VeChain can be used to develop decentralized applications and other apps that contribute to the growing Web3 concept. Web3 is often described as the next iteration of the internet, where centralized control of access, data, and information is replaced by a distributed network infrastructure. In other words, the way users interact with the web will not change much, but how it works behind the scenes will change.

The Bottom Line

VeChain is anꦰ actively developed and maintained blockchain for enterprise and other uses. The ecosystem can be us🧸ed to create everything from tokens, cryptocurrencies, and dApps to supply-chain management and tracking systems.

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