Table of Contents
- What Is VeChain (VeChainThor)?
- The Origins and Evolution of VeChain
- Strategic Partnerships of VeChain
- Understanding the VeChainThor Blockchain
- Fast Fact
- Exploring Further Node Types in VeChain
- Insights Into VeChain's Tokenomics
- Practical Applications of VeChain Technology
- Is VeChain Still a Good Investment?
- What Is VeChain Used for?
- Is VeChain a Dead Project?
- The Bottom Line
What Is VeChain (VeChainThor)?
Let me explain VeChain to you directly: it's a solid blockchain ecosystem built to transform supply chain management and streamline business operations. It runs on a dual-token setup with VeChain Token (VET) and VeChainThor Energy (VTHO), which handle value transfer and keep things running efficiently. Sunny Lu founded it, and it's breaking down barriers in corporate data handling while pushing forward Web3 development and sustainable practices.
Key Takeaways
- VeChain serves as a blockchain platform to boost supply chain management and support business processes.
- The ecosystem relies on two tokens: VET for value transfer and VTHO for transaction fees.
- Started in 2015, VeChain began with supply chains but now backs decentralized applications and IoT.
- Partnerships with firms like PwC and Renault highlight its role in product verification and traceability.
- VeChain uses a proof-of-authority consensus to enhance network efficiency and security.
The Origins and Evolution of VeChain
VeChain got its start in 2015 under Sunny Lu, who was previously the CIO at Louis Vuitton China. It began as a subsidiary of Bitse, a major blockchain player in China, and stands out as one of the few blockchains with a real customer base among big companies.
Here's the core goal as I see it: VeChain aims to let people engage with sustainability daily by empowering them to make informed decisions on essentials like healthy food, clean water, and fresh air. Through blockchain and evolving tech, it fosters genuine partnerships between individuals, organizations, governments, and enterprises.
At first, VeChain targeted enterprises to shake up supply chains by making data transparent and usable. Now, it's broadened into a full ecosystem where developers can build dApps, cryptocurrencies, and tokens, plus integrate IoT, all geared toward a more sustainable society and economy for people and businesses.
Strategic Partnerships of VeChain
VeChain has secured key partnerships to push its objectives forward. Take the deal with PricewaterhouseCoopers (PwC): it lets PwC's clients use VeChain's blockchain for better product verification and traceability.
There's also the collaboration with Renault, Microsoft, and Viseo to build a tamper-proof digital car maintenance book. VeChain acts as the tech partner for Gui'an, a government development zone in central China.
Another one is with UFC, where NFC devices in official boxing gloves store NFTs on the VeChainThor blockchain to verify authenticity and track fighter history.
Understanding the VeChainThor Blockchain
Originally, the VEN token ran on Ethereum, but in 2018, it moved to its own blockchain and rebranded to VeChainThor (VET).
VeChainThor operates on a proof-of-authority algorithm known as proof-of-authenticity. Authority Masternodes get selected via a vetting process that checks identities and requires a financial stake.
Fast Fact
These Authority Masternodes validate transactions, propose blocks, and earn gas fees. There are 101 of them handling consensus on the VeChain blockchain. No anonymous nodes here—identity disclosure is mandatory to become one. Per the white paper, this setup uses less power and doesn't need a minimum number of validators for consensus.
Exploring Further Node Types in VeChain
Beyond Authority Masternodes, VeChain has economic and X master nodes. These don't create blocks or records but act as a check on power.
You can become an economic node by holding the required VET balance—each million VET gives one governance vote.
X-nodes are for those buying VET on the secondary market; they generate 0.000432 VTHO per VET staked and come with voting rights.
Insights Into VeChain's Tokenomics
VeChainThor features two tokens: VET and VTHO. VET is the main token for carrying value in smart contracts—think of it as smart money for transactions on dApps, and it's publicly available.
VTHO stands for VeChainThor Energy, used to pay for transactions. It's like Ethereum's ether, where dApp developers budget for usage. The dual system, as per the white paper, ensures good governance and a predictable model for developers.
Ethereum's ether price volatility makes budgeting tough, requiring constant tweaks. VeChain fixes this with enhancements like allowing Proof of Work for transactions, so you can mine extra VTHO if needed or tip validators for faster inclusion.
Practical Applications of VeChain Technology
VeChain tracks everything from quality to last-mile delivery for items like medicine or alcohol, using smart chips, RFID tags, and sensors that feed data to the blockchain for real-time access by stakeholders.
Sensors monitor parameters continuously, alerting on issues like improper storage temperatures to improve quality control for manufacturers and customers.
Car owners can own their data on VeChain to negotiate better insurance terms. Plus, it supports building dApps and contributes to Web3, shifting from centralized to distributed web infrastructure without changing user experience much.
Is VeChain Still a Good Investment?
That depends on your view of the market and if you think VeChain's model will lead to lasting growth. It has potential and real users, so some might see it as worthwhile.
What Is VeChain Used for?
VeChain handles tracking materials and transactions, plus creating dApps—it's versatile.
Is VeChain a Dead Project?
As of July 2024, it's active, with development ongoing and users like UFC; it offers grants for business, development, and sustainability projects.
The Bottom Line
VeChain is an enterprise blockchain that's actively developed, used for tokens, cryptocurrencies, and dApps. It improves operations through supply chain management and tracking. Partnerships with PwC and Renault, plus ties in automotive and sports, show its innovation. The VET and VTHO system provides a stable model, setting it apart in blockchain.
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