What is VeChain (VET): A Simple Guide to the Supply Chain Blockchain

VeChain is a blockchain platform that aims to solve real-world problems.

It uses special tokens called VET to power its network. VeChain helps track products and verify their authenticity, making supply chains more transparent and efficient.

VET tokens are used for transactions on the VeChain network.

When you use VeChain’s blockchain, you’ll need VET to pay for things like creating smart contracts or moving data.

It’s like digital money that keeps the whole system running smoothly.

VeChain isn’t just about tokens, though.

It’s built to work with real-world items.

You can use it to check if a luxury bag is real or to see where your food came from.

This makes VeChain useful for businesses and shoppers alike.

Understanding VeChain and Its Vision

VeChain aims to change how businesses work using blockchain tech.

It wants to make supply chains better and help companies be more eco-friendly.

The Foundation and Leadership

The VeChain Foundation leads the project.

Sunny Lu, who used to work for Louis Vuitton, started VeChain in 2015.

He saw how blockchain could fix problems in supply chains.

VeChain isn’t just about tracking products.

It’s building a whole system for businesses to work together better.

They call this their “blockchain ecosystem.”

You might wonder how this helps you.

Well, when companies can track things better, you get products faster and know they’re real.

No more worrying about fake stuff!

Sustainability Goals

VeChain isn’t just about making money.

They want to help the planet too.

Their big goal? A sustainable, circular economy.

How do they plan to do this? By using blockchain to:

• Track how eco-friendly products are
• Help companies waste less
• Make it easier for you to choose green products

They’re working with big companies to make this happen.

When you buy something tracked by VeChain, you’re helping create a greener world.

VeChain Technology Explained

VeChain uses special tech to make supply chains better.

It has its own blockchain, smart contracts, and two tokens that work together.

Let’s look at how it all fits together.

The VeChainThor Blockchain

The VeChainThor blockchain is the backbone of VeChain.

It’s built to handle lots of transactions quickly and cheaply.

This makes it great for businesses that need to track products.

You can think of it like a super-fast, digital ledger.

It records every step a product takes from factory to store shelf.

This helps stop fake goods and makes sure everything is where it should be.

The blockchain also lets companies share info safely.

They can prove where things came from without giving away secret business details.

Smart Contract Platform and DApps

VeChain isn’t just for supply chains.

It’s also a place where you can build and use decentralized apps (DApps).

Smart contracts are like digital agreements that run automatically.

On VeChain, you can use them to:

• Track products
• Manage supply chains
• Create loyalty programs
• Make sure food is safe

Developers can build all sorts of cool apps on VeChain.

These apps can help businesses work better and give customers more info about what they buy.

Two-Token System: VET and VTHO

VeChain uses two tokens instead of just one.

This clever setup helps keep the network stable and easy to use.

VET (VeChain Token):

• The main currency of VeChain
• Used for investing and sending value
• Gives you voting rights in the network

VTHO (VeChainThor Energy):

• Pays for transactions on the network
• Created automatically when you hold VET
• Keeps transaction costs steady

This system means businesses can plan their costs better.

They don’t have to worry about fees going up suddenly when the network gets busy.

Consensus Mechanism: Proof of Authority

VeChain uses a system called Proof of Authority (PoA) to keep its network safe and fast.

Here’s how it works:

1. A small group of trusted nodes validate transactions
2. These nodes are known and approved by the VeChain Foundation
3. They take turns adding new blocks to the chain

This method is faster than Bitcoin’s Proof of Work.

It also uses way less energy, which is good for the planet.

PoA helps VeChain handle lots of transactions quickly.

This is super important for businesses that need to track tons of products every day.

The system also lets VeChain work with governments and big companies.

They like knowing who’s in charge of keeping the network running.

VeChain in Action

VeChain is making waves in supply chain management and enterprise adoption.

Its blockchain tech is solving real-world problems and partnering with big names.

Use Cases in Supply Chain

VeChain’s blockchain shines in supply chains.

It uses Internet of Things (IoT) devices to track products from factory to shelf.

This gives you full transparency and traceability.

Imagine buying a luxury handbag.

With VeChain, you can scan a QR code to see its journey.

You’ll know it’s genuine and where it’s been.

Food safety? VeChain’s got that covered too.

It tracks temperature and humidity for perishables.

This keeps your food fresh and safe.

Partnerships and Enterprise Adoption

VeChain isn’t just talk – it’s got some impressive friends. BMW partnered with VeChain to verify car mileage.

This stops odometer fraud and helps you buy used cars with confidence.

Even countries are jumping on board.

The tiny nation of San Marino uses VeChain for COVID-19 health records.

It’s a safe way to store sensitive data.

Big companies love VeChain’s enterprise blockchain.

It lets them share data securely and efficiently.

This cuts costs and boosts trust between businesses.

VeChain’s Tokenomics

VeChain uses two tokens to power its ecosystem.

You’ll find VET as the main cryptocurrency and VTHO for handling transaction costs.

Understanding the VET Token

VET is the primary token for carrying value in the VeChain network.

It’s used as a medium of exchange and store of value.

The total supply of VET is 86,712,634,466 tokens.

This number doesn’t change, making VET a non-inflationary cryptocurrency.

VET started as an ERC-20 token on Ethereum before moving to its own blockchain.

Now, it’s the lifeblood of VeChain’s ecosystem.

You can use VET for:

• Staking to generate VTHO
• Voting on network decisions
• Accessing VeChain services

Market Insights and Trends

VET’s market performance has seen ups and downs.

Its all-time high was $0.2782 in April 2021, while the all-time low was $0.001678 in March 2020.

As of November 2024, VET’s market cap stands at $X billion.

This puts it in the top X cryptocurrencies by market value.

Enterprise investors play a big role in VET’s adoption.

Companies like Walmart China and BMW use VeChain tech, boosting VET’s real-world use.

VET’s fully diluted valuation gives you an idea of its total worth if all tokens were in circulation.

This figure helps you compare VET to other cryptos.

Frequently Asked Questions

VeChain is a blockchain platform with many unique features and partnerships.

Let’s explore some common questions about how it works, its value, and its place in the crypto world.

How does VeChain function in the blockchain space?

VeChain uses blockchain tech to make supply chains better.

It helps companies track products and fight fake goods.

VeChain has two tokens: VET and VTHO.

VET is the main token for value in the system.

VTHO pays for using the network.

This setup helps keep costs steady for businesses.

Can you predict the future price of VeChain?

Crypto prices are hard to predict.

VeChain’s price depends on many things.

These include market trends, new partnerships, and overall crypto adoption.

No one can say for sure what VET will cost in the future.

It’s best to do your own research before investing.

What are some of the notable partnerships of VeChain?

VeChain has teamed up with big names in various industries.

Some key partners include:

1. BMW – for car supply chain tracking
2. Walmart China – for food safety
3. DNV GL – for business certification

These partnerships help VeChain grow and show its real-world use.

Could you give reasons why someone might not want to invest in VeChain?

While VeChain has potential, there are risks to consider:

1. Competition from other blockchain projects
2. Regulatory changes in different countries
3. Crypto market volatility

VeChain’s focus on supply chains might limit its growth in other areas.

This could affect its value long-term.

What’s the primary difference between VET and VeChain Thor?

VET is the main token you can buy and trade.

VeChain Thor (VTHO) is the gas token.

You use VTHO to pay for transactions on the network.

VET holders get VTHO over time.

This system helps keep network costs stable for businesses.

Is VeChain under the ownership or influence of a Chinese entity?

VeChain was founded in Singapore, not China.

However, it has strong ties to China.

Many of VeChain’s partnerships and use cases are in China.

But it’s a global project with partners worldwide.

VeChain aims to work with businesses and governments in many countries.