TL;DR
VeChain provides blockchain solutions to companies around the world.
With the large number of blockchain applications for industry - ranging from supply chain management, anti-counterfeiting to carbon credits - the efficiency of VeChain systems has been proven in the real world. VET is the currency that underpins VeChain, where VTHO is the Gas Token that is used for transactions on the VeChainThor blockchain (like Ethereum's Gas).
Introduction
VeChain is a company founded in 2015 that provides blockchain-based solutions for businesses, leveraging the power of its VeChainThor blockchain. The company has strong links with Chinese industry and government and seeks to further strengthen these ties.
What is VeChain (VET)?
VeChain was introduced in 2015 as part of Shanghai-based Blockchain-as-a-Service (BaaS) company BitSE. VeChain is a distributed business ecosystem that uses blockchain technology. It was developed specifically for small and large companies. VeChain's public blockchain is VeChainThor.
The VeChain Foundation was founded in Singapore and oversees the development, governance, and progress of the VeChain ecosystem.
VeChain is already considered by many to be a mature company, with many real-world business applications already existing on the VeChainThor blockchain. According to VeChain Whitepaper 2.0, “these solutions are not just theoretical, they are solutions tested and discussed with more than 700 companies and implemented for more than 100 high-level companies.”
VeChain's parent unit has received a 5-star Blockchain service certificate from TÜV Saarland, a European certification body.
How does VeChain (VET) work?
The VeChainThor blockchain works similarly to other business-oriented blockchain platforms. Companies use VeChain's Blockchain-as-a-Service (BaaS) product, called ToolChain, to build their solutions based on blockchain technology. VeChainThor also supports smart contracts.
Single transactions on the VeChainThor blockchain can perform multiple tasks. Furthermore, VeChain users do not need to store (hold) any crypto to carry out transactions. Instead, transactions are handled by app owners, which makes the experience more convenient for beginners and intermediate users.
The VeChainThor blockchain uses the Proof of Authority (PoA) consensus mechanism, which delegates power to certain nodes (nodes) on the VeChainThor blockchain to confirm transactions. This means that transaction blocks are only processed by Authority Masternodes, which need to have a holding of at least 25,000,000 VET.
What are VET and VTHO?
VeChain has two independent tokens: VET and VTHO.
VET (VeChain Token) is used for financial transactions on the VeChainThor blockchain and for market speculation.
VTHO (VeThor Token) is the “energy token” used to conduct transactions on VeChainThor. VET owners can generate VTHO for use on the VeChainThor blockchain.
Why is VeChain (VET) important?
VeChain is notable for its close relationship with China – a very important blockchain market that is difficult to access for non-Chinese companies. VeChain's headquarters are in Singapore, but the group has an office in Shanghai, as well as investment from Chinese venture capital firm FutureCap and a Chinese CEO, Sunny Lu. The project also has partnerships with several Chinese government bodies, including the China Animal Health And Food Safety Alliance.
The organization also has several business partners, who offer solutions - already used in the corporate world - for the VeChainThor blockchain. Some of VeChain's partnerships include PriceWaterhouseCoopers (PwC), Walmart China, Renault, and Shanghai Waigaoqiao Direct Imported Goods.
VeChain (VET) Use Cases
Let's look at some of the most important use cases for VeChain technology. However, this is not an extensive list. You can refer to the VechainWorld DApp library for more information.
Food sector safety
Solutions based on blockchain technology can provide a more transparent food economy worldwide.
VeChain-enabled Internet of Things (IoT) devices can be deployed across the entire supply chain, including products, vehicles, and warehouses/warehouses. Location-based data from these devices can be uploaded, verified, and stored in a decentralized, tamper-proof manner on the VeChainThor blockchain. Solutions like this are already in place at several companies, including Shenzhen Yuhongtai Foods.
Anti-counterfeiting
Counterfeiting in the luxury goods market is a serious problem. By attaching an encrypted chip and then using it to record and track logistics, storage, maintenance and resale information, product owners are assured of authenticity. This feature is used for luxury wine tracking by Shanghai Waigaoqiao Direct Imported Goods and in testing for Renault luxury vehicle components.
Healthcare Industry Records
The health sector's record systems are clearly outdated. Instead of using inefficient and insecure systems for laboratory results, this valuable data can be stored on the blockchain, with exclusive access to patients and authorized people. In 2021, a VeChain E-HCert app will be implemented for patients at two hospitals in Cyprus: Mediterranean Hospital and Aretaeio Hospital.
Tracking carbon emissions
By tracking activities and resulting reduction in carbon emissions, this solution allows consumers to get involved in programs that contribute to the cause.
When smart devices, such as cars or appliances, show that the consumer is emitting less carbon, they can receive credits for use in energy services. BYD, a Chinese electric car brand, already uses a VeChain solution.
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How to store VeChain (VET)?
You can store VET and VTHO as well as several other crypto assets in the official VeChainThor wallet for iOS or Android - this is a lightwallet, meaning there is no need to download the full blockchain. The official desktop wallet is VeChain Sync, which can also be used with the Ledger for cold storage 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.
Final considerations
VeChain is ambitious and already has a strong presence in the Chinese market.
With proven projects from large companies already running on the VeChainThor blockchain, the organization has shown that it can help companies create very useful solutions based on blockchain technology.
Have more questions about VeChain? Check out our Q&A platform, Ask Academy, where the Binance community answers your questions.