VeChain (VET) Explained

VeChain is a cryptocurrency and software that works as part of the VeChainThor blockchain, which supports two unique cryptocurrencies and smart contracts.

VeChain is particularly useful for logistics and tracking, which can generate interest in transportation, retail, manufacturing, warehouse, supermarkets, and other industries.

A unique approach to the supply chain can make VeChain an interesting part of your cryptocurrency strategy. Read on to learn more about how VeChain works, the special features it offers, and whether investing in VeChain might make sense for your cryptocurrency portfolio.

What is VeChain?

VeChain is a cryptocurrency network focused on supply chain and logistics needs. The VeChainThor blockchain, the public blockchain behind VeChain, runs the VeChain (VET) token and the VeThor (VTHO) token. The VeChain token is used to transfer value over the network, while the VeThor token is used as energy to power smart contract transactions.

VeChain was officially launched in 2016 under the leadership of a Shanghai-based team, after about a year of development.

It is now managed by a team of over 100 workers globally, offering blockchain-as-a-service (BAAS) products to clients in the logistics and data management industries.

According to its white paper, VeChain's mission is to "enable the blockchain community, business owners, corporations, governments, or anyone else to move their business activities to the blockchain effortlessly," with an emphasis on the fact that it is not require technical knowledge.

At the time of writing, VeChain's market capitalization was $ 6.8 billion, making it the 21st largest cryptocurrency. VeThor has a market capitalization of $ 286 million and is the 150th largest digital currency.

VeChain special functions

VeChain has many special features available. The key features that set VeChain apart are its use cases for tracking merchandise and data.

Businesses that require a verified chain of ownership through production, transportation, or other processes can use VeChain for this purpose.

Using VeChain's smart sourcing capabilities, users can track ownership and control of any quantity of goods. For example, an electronics manufacturer can track the product distribution process using VeChain.

The heavily regulated marijuana industry, for example, could use VeChain to track seeds, plants, salable products, and sales to meet end-to-end compliance requirements. If a business needs to buy or sell it, it can track it using VeChain.

In its simplest terms, smart contracts are programs stored on a blockchain. They run when default conditions are met and can automate workflow, triggering the next required action when conditions are met.

The VeChain white paper offers potential use cases in the food and pharmaceutical industries. In both industries, it can be critical to know whether a product is purchased and safely stored by multiple owners and facilities.

VeChain is also useful for anti-counterfeiting, digital vehicle passports or any open financial transaction.

VeChainThor could support new coins and other smart contracts. The coins on this blockchain follow the VIP180 standard, developed exclusively for VeChain, similar to ERC-20 tokens on the Ethereum blockchain.

This means that, unlike the energy-intensive proof-of-work system used by Ethereum (and Bitcoin), VeChain uses a proof-of-authority strategy to enable an efficient network that uses relatively little electricity.

How to extract VeChain

VeChain cannot be mined. Instead, it runs on a test of authority where the top players act as network validators. This means that fewer computers do the work of validating and operating the VeChain network. For people, it means that they are unlikely to have a chance to mine VeChain.

Those with a solid reputation can be chosen as validators by other network participants. This is similar to the betting test coins, as those with the highest bet on the network choose the validators.

However, both use much less power than competing work-proof coins.

How to invest in VeChain

If you want to buy and own VeChain, you have several options for exchanges and wallets. As one of the top 25 cryptocurrencies, VeChain has wide support and is easy to buy through many of the major cryptocurrency exchanges. In addition to the official VeChain wallet, you can store your VeChain in a hardware wallet like Ledger.

As with any cryptocurrency, it is essential to keep your VET in a secure wallet from hackers and others who might try to part with your currency.

Exchanges supported by VeChain include Binance, Crypto.com, and Bitfinex among many others.

Fees and expenses

When transacting with VeChain, you will need a wallet with enough money to cover the transaction costs. Last year, transaction costs ranged from about 25 cents to about $ 7.

Notable events

In April 2021, the VeChain network voted to lower fees, a good sign for anyone looking to use VeChain as a smart contract currency or platform. This is part of the Ve Vote system, where users can vote on future changes and updates to the network.

We hope you enjoy watching this video about VeChain

Source: Exodus

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