Summary
VeChain provides blockchain solutions to businesses around the world.
With a plethora of existing industry blockchain applications from supply chain management to anti-counterfeiting and carbon credits, their system has been proven in the real world. VET is the token that underpins VeChain, where VTHO is the fuel token used for transactions on the VeChainThor blockchain (just like gas on Ethereum).
Introduction
VeChain is a company founded in 2015 that provides blockchain-based solutions for enterprises using the power of the VeChainThor blockchain. The company has established deep ties with Chinese industry and government and seeks to further deepen cooperation.
What is VeChain (VET)?
Launched in 2015 as an offshoot of Shanghai-based Blockchain-as-a-Service (BaaS) company BitSE, VeChain is a distributed business ecosystem that leverages blockchain technology. It is specifically designed to serve businesses of all sizes. VeChain's public blockchain is called VeChainThor.
The Vechain Foundation was established in Singapore to oversee the development, governance, and advancement of the Vechain ecosystem.
VeChain is a mature company that already has many real-world commercial applications on the VeChainThor blockchain. As stated in VeChain White Paper 2.0, “These solutions are not limited to theory, but have been tested and discussed in more than 700 enterprises and implemented by more than 100 Fortune 500 companies.”
VeChain’s parent company has received a five-star blockchain service certificate from TÜV Saarland, a European certification body.
How VeChain (VET) works
The VeChainThor blockchain operates similarly to other commercial blockchain platforms. Enterprises use VeChain's full-featured Blockchain-as-a-Service (BaaS) product, ToolChain, to build blockchain-based solutions. VeChainThor also supports smart contracts.
A single transaction on the VeChainThor blockchain can perform multiple tasks. In addition, users of VeChain applications do not need to hold any cryptocurrency to conduct transactions. The owner of the application can do this on their behalf, bringing a more convenient user experience to ordinary users.
The VeChainThor blockchain uses a Proof of Authority (PoA) consensus mechanism to delegate power to certain nodes in the VeChainThor blockchain to confirm transactions. This means that it only needs to pass transaction blocks through authoritative masternodes that hold at least 25,000,000 VET.
What are VET and VTHO?
VeChain has two separate tokens: VET and VTHO.
VET (VeChain Token) is used for financial transactions and market speculation on the VeChainThor blockchain.
VTHO (VeThor Token) is the “power token” used to transact on VeChainThor. VET owners can generate VTHO to be used on the VeChainThor blockchain.
Importance of VeChain (VET)
VeChain is known for its close ties to China, a key blockchain market that is difficult for non-Chinese companies to enter. The company is headquartered in Singapore with an office in Shanghai, funded by Chinese venture capital firm FutureCap, and its CEO is Sunny Lu, who is from China. The project has also established partnerships with multiple Chinese government agencies, including the China National Animal Health and Food Safety Innovation Alliance.
The organization also has numerous business partners on the VeChainThor blockchain, using a variety of solutions that already exist in the real world. Partners that already have VeChain solutions include PwC, Walmart China, Renault, and the Shanghai Waigaoqiao Import Goods Direct Sales Center.
VeChain (VET) Use Cases
Let’s look at some of the most important use cases of VeChain technology. But this list is not exhaustive. You can visit the VechainWorld repository of Dapps for more information.
food safety
Blockchain-based solutions can create a more transparent food economy around the world.
VeChain-enabled Internet of Things (IoT) devices can be deployed at every stage of the supply chain, including products, vehicles, and warehouses. Environmental and location data from these devices can then be uploaded, verified, and stored on the VeChainThor blockchain in a tamper-proof, decentralized manner. Solutions such as these have already been adopted by several companies, including Shenzhen Yuhongtai Food Co., Ltd.
Anti-counterfeiting
Counterfeit goods in the luxury goods market have become a serious problem. By attaching an encrypted chip, which is then used to record and track logistics, warehousing, maintenance and resale information, owners can ensure the authenticity of the product. The technology has been used to trace the origin of high-end wines at the Shanghai Waigaoqiao Import Goods Direct Sales Center and to inspect parts for Renault luxury cars.
Medical records
It’s a fact that healthcare record keeping systems are notoriously outdated. Instead of using inefficient and insecure systems for recording lab results, this valuable data can be stored on a blockchain, accessible only to patients and other authorized parties. The VeChain-based E-HCert app will be available to patients at Mediterranean Hospital of Cyprus and Aretaeio Hospital in 2021.
Tracking Carbon Emissions
The solution reduces carbon emissions by tracking carbon emitting activities and allows consumers to participate in carbon saving programs.
When data from smart devices such as cars or appliances shows that consumers are generating less carbon emissions, they can earn credits for energy services. Chinese electric car brand BYD (BYD) is already using the Vechain solution.
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How to store VeChain (VET)
You can store VET and VTHO, as well as other crypto assets, in the official VeChainThor light wallet for iOS or Android. The official desktop wallet is VeChain Sync, which can be used with Ledger for cold wallet storage.
Third-party wallets that can store VET and VTHO include Trust Wallet, Cobo Wallet, Atomic Wallet, Arkane Wallet, MySafeWallet, Guarda Wallet, Ellipal, and Exodus.
Summarize
VeChain is ambitious and already has a strong influence in the Chinese market.
Currently, many mature projects of well-known companies are running on the VeChainThor blockchain, proving that VeChain can indeed help companies build useful blockchain applications.
Do you have any other questions about VeChain? Visit Ask Academy, our Q&A platform, where members of the Binance community will patiently answer your questions.